Latest news with #OklahomaPolicyInstitute
Yahoo
29-05-2025
- Business
- Yahoo
Oklahoma governor signs income tax cut deal: What to know
Republican Gov. Kevin Stitt has signed an income tax cut into law, accomplishing his main goal of the legislative session with days to spare. The quarter-point cut will reduce Oklahoma's income tax rate to 4.5% for most earners, while costing the state between $160 million and $300 million a year in lost revenue, according to varying estimates. Stitt has long pressed for reducing income taxes and reached a deal this year with the Republican-led Legislature to make it happen. The agreement includes a consolidation of income tax brackets and what Stitt has described as a "path to zero" income tax, with triggers meant to further reduce the tax rate in future years. While Stitt had opened the Legislative session in February by calling for a steeper half-point tax cut, he has still seemed pleased with landing a quarter-point cut. Talking about the tax cut deal during a news conference on Wednesday, May 28, Stitt said it would "automatically trigger tax cuts, not in an irresponsible way, but with excess revenue, we'll be able to trigger tax cuts and put us on a path to zero." The specifics of the cut are spelled out in House Bill 2764, which Stitt signed on Wednesday. By law, the Legislature has until Friday to finish its regular session business. Critics have questioned whether lawmakers should reduce tax collections — and also dip into savings to cover some line items in the state's nearly $12.6 billion budget for the next fiscal year — at a time of economic uncertainty. More: Gov. Stitt, legislative leaders announce budget deal including tax cuts, tort reforms According to an analysis by the Oklahoma Policy Institute, a nonpartisan Tulsa-based think tank, cutting income taxes by a quarter of a percentage point would reduce state revenues by $306 million annually. The group's analysis also showed many Oklahomans stand to save only marginal amount on their annual income tax bill. A quarter-point cut could save people who make $79,700 or less between $9 and $95, and would save those in the top 1% of incomes — making $683,500 or more — $2,936 annually, the group found. Stitt has said the cut will help out struggling families and cost the state about $160 million in lost revenue during the next fiscal year, citing Oklahoma Tax Commission numbers. Stitt has maintained because that money is spent by taxpayers, not state government, it's better for the economy. The tax cut bill passed by margins of 74-19 in the House and 34-11 in the Senate, largely along party lines. This article originally appeared on Oklahoman: Oklahoma Gov. Stitt signs income tax cut bill: What you should know
Yahoo
21-05-2025
- Politics
- Yahoo
Bill putting restrictions on petition process heads to Oklahoma governor
Gov. Kevin Stitt laughs when answering a question during a press conference on Wednesday, May 21, 2025. (Photo by Janelle Stecklein/Oklahoma Voice) OKLAHOMA CITY – The Oklahoma Senate on Wednesday sent Gov. Kevin Stitt a measure that would make it more difficult for residents to put things on the ballot. Critics said the measure is an unconstitutional legislative power grab, while supporters said it is necessary to ensure more input from rural counties and prevent fraud. Currently, state law requires 97,263 signatures to get statutory changes before the voters and 172,993 for constitutional amendments. There are no restrictions on where the signatures are collected. But Senate Bill 1027 would put limits on how many signatures could come from counties. For a statute change, no more than 11.5% of votes cast in the most recent gubernatorial election could come from a single county. That signature threshold increases to 20.8% for a constitutional amendment. 'This forces them out to 18 to 20 different counties,' said Sen. David Bullard, R-Durant, the bill's author. 'It doesn't even force them out to all 77 counties. We're just asking that you go to 18 to 20 different counties to gather these signatures and get various opinions on whether or not this is something you want to do.' Oklahoma has more than 2.3 million registered voters, of which 1.15 million voters cast ballots for governor in the 2022 general election, according to the Tulsa-based Oklahoma Policy Institute. The bill's requirements would exclude 2.2 million registered voters, or 94.4% of them, from signing a petition for statutory changes, according to the organization. It would exclude 2.1 million registered voters , or 89.8% of them, from signing a petition for constitutional amendments, according to the organization. The measure would prohibit the payment to circulators based on the number of signatures collected. It would require sources of payment to circulators to be disclosed and bar out of state interests from donating. Bullard asked why Oklahomans would want 'massive liberal organizations coming in here and shoving this stuff down your throat.' It would require petition circulators to be registered Oklahoma voters. Finally, it would require a political appointee, the Secretary of State, to approve the gist, the brief summary of the ballot measure that voters see at the top of the signature sheet. Critics say the process has been used to get needed reforms on the ballot, such as Medicaid expansion, medical marijuana legalization and criminal justice reform, when lawmakers declined to act. The bill will 'suppress and subvert what we used to know as democracy,' said Sen. Regina Goodwin, D-Tulsa. Sen. Mark Mann, D-Oklahoma City, called the measure 'a power grab.' 'It takes power away from everyday Oklahoma voters,' he said 'It silences the voice of everyday citizens.' Mann said the bill is likely unconstitutional and violates a U.S. Supreme Court ruling that says out-of-state money from corporations can be spent on elections and ballot initiatives. He said the artificial signature cap also discriminates against voters in Oklahoma and Tulsa counties, whose residents combined make up 40% of the state's population, but can comprise only 23% of the total signatures collected. 'It violates the one person one vote principle,' he said.' Senate Minority Leader Julia Kirt, D-Oklahoma City, said the measure establishes barriers that make it nearly impossible to get issues on the ballot. Bullard said the state Constitution says laws shall prevent corruption in the referendum process. 'Let me be very clear,' Bullard said. 'If you are willing to go to two or three counties to gather those signatures and completely willing to completely ignore 97.5% of the state counties, that's corruption.' The measure passed by a vote of 39-7. Stitt said Wednesday that he will review the measure before deciding whether to sign it. He said it is easier to get something on the ballot in Oklahoma than in other states, and lawmakers are trying to find a balance. It would become effective immediately with Stitt's signature. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
19-05-2025
- Business
- Yahoo
Democrats raise alarm over cutting Oklahoma taxes amid D.C. budgetary uncertainty
Gov. Kevin Stitt announces a budget deal for the 2026 fiscal year on May 14, 2025. Senate President Pro Tem Lonnie Paxton, R-Tuttle, left, and other legislative leaders joined the governor for the announcement at the state Capitol. (Photo by Emma Murphy/Oklahoma Voice) OKLAHOMA CITY – Some are questioning the wisdom of Oklahoma Republicans' plans to cut taxes amid the ongoing push for budgetary reform in the nation's Capitol that aims to shift the cost for some high-dollar federal programs onto states. Some critics of the plan to cut Oklahoma's income tax 0.25% said the state will likely need the revenue the existing tax generates if congressional Republicans move forward with plans to require states to bear some costs of programs such as Medicaid and Supplemental Nutrition Assistance Program, more commonly known as SNAP or food stamps. Experts also point to broader economic concerns that the Trump administration's tariffs could increase the costs for goods and reduce consumer spending, resulting in less sales tax revenue. But a top legislative Republican said he is not concerned about the budgetary uncertainty playing out in D.C. Republicans said that now is the right time to cut the state's top income tax rate from 4.75% to 4.5%, which will allow Oklahomans to keep more of their money. They said will grow spending and increase Oklahoma's competitiveness in luring new residents to the state. Gov. Kevin Stitt said the state's income tax used to be 7% and has been gradually reduced. 'And every time we've seen that, the economy continues to expand,' Stitt said. 'We've seen revenue continue to grow.' A family of four with an income of $50,000 would save about $137 a year, according to Senate staff. The Oklahoma Policy Institute, a Tulsa-based think tank, said a 0.25% cut will cost state coffers about $338 million annually. Lawmakers are also discussing reducing the number of income tax brackets to three from six. The organization estimates that it will cost an additional $87 million a year. 'It is not wise at all,' said Aanahita Ervin, the organization's fiscal policy analyst, of making tax cuts this year. 'The (federal) costs are going to impact every state.' Oklahoma Democratic lawmakers are also sounding the alarm, though being in the minority they can do little on their own to stop a tax cut. Under the most current plan, congressional Republicans are hoping to reduce Medicaid spending by about $625 billion, and require states for the first time to contribute to SNAP In Oklahoma, nearly 1 in 4 residents are on Medicaid, and about 17% of people receive food stamps. Senate Minority Leader Julia Kirt, D-Oklahoma City, said state leaders don't have enough certainty from Congress to cut taxes right now. 'We won't know the federal budget until after session, so we are making decisions in a vacuum,' she said. Even without tax cuts, Oklahoma would still struggle to cover any federal cost shifts, she said. Kirt said the federal government has sent states billions in pandemic relief dollars. That has propped up budgets, not prudent planning, she said. But Senate President Pro Tem Lonnie Paxton, R-Tuttle, who supports the cut, said he isn't worried about the federal uncertainty. 'I don't think it is going to impact this budget year,' Paxton said. 'If anything happens, it will be down the road and give us time to plan for it.' Republicans say the state has about $3.5 billion in savings. House Minority Leader Cyndi Munson, D-Oklahoma City, said Oklahoma voters a few years ago approved Medicaid expansion and enshrined it in the state Constitution, so the legislators must pay for it even if the federal government does not, she said. 'There is a lot of uncertainty with what's happening at the federal level,' she said. Ervin, with the Policy Institute, said it will be difficult for Oklahoma lawmakers to raise taxes if revenue is needed in the future. In 1992, voters passed State Question 640 that required a three-fourths vote in both chambers or a vote of the people to raise taxes, something which has only been done once in three decades. Ervin said lawmakers' first instinct would be to cut services and or rely on savings before raising taxes. 'I think they will exhaust all those options before they even come close to talking about raising taxes,' Ervin said. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
09-05-2025
- Business
- Yahoo
Most Private School Tax Credit recipients came from families making $75K+
OKLAHOMA CITY (KFOR) — New Tax Commission numbers released this week show most recipients approved for the Parental Choice Tax Credit were awarded to families earning above average income. The total amount approved was $236 million with a cap of $250 million. Oklahoma Policy Institute first reported the findings earlier this week and found that families earning more than $250k/year made up more than 1 in 4 recipients. The numbers showed that most of the money went to students who had already been enrolled in private school, too. It showed that just 2,963 of the 36,921 students approved for the tax credit so far this year were enrolled in public school the previous semester. Lifting cap on Oklahoma's School Choice Tax Credit could have high cost 'They were sold as being a way to help public school kids who were in bad public schools get into private school. Clearly that's not the case since 92% of the people using them are already in private schools,' said Senator Julia Kirt (D-Oklahoma City). Also, almost 75% came from families with household incomes above $75,000, according to the latest Tax Commission data. Numbers from March showed that a $27.1 million portion, about 30%, went to families making below $75,000 a year. A nearly equal amount, $26.3 million, went to families making between $75,000 and $150,000. Another $15.7 million, or 17%, went to families making between $150,000 and $225,000. 'Almost half of the folks that are receiving the tax credits are making more than $150,000 annually, and 92% of the families were already in private school to begin with. So, again, the question that we have is, who's getting a different choice now?' asked Senator Carrie Hicks (D-Oklahoma City). Republicans have long approved of the program. Governor Stitt has asked as recently as March for there not to be a cap on the program. On Wednesday, News 4 asked the governor's office if they had looked at the recent snapshot from the Tax Commission and if he still wants the cap removed. We have not heard back. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
04-04-2025
- Business
- Yahoo
Raising the minimum wage in Oklahoma could help with affordable housing
OKLAHOMA CITY (KFOR) – Oklahoma has not seen an increase in minimum wage since 2009. According to the Oklahoma Policy Institute, rent in Oklahoma has risen by 60 percent. This has resulted in an increase in eviction filings and homelessness. The Oklahoma Policy Institute believes State Question 832 could help with this issue. State Question 832 is an initiative petition that gives Oklahomans the opportunity to vote for a raise in minimum wage. If passed, the minimum wage would increase from $7.25 an hour to $15 an hour by 2029. The increase would affect more than 200,000 Oklahomans, with the majority being women and people of color. Gov. Kevin Stitt issued an executive order for a special election over the petition on June 16, 2026. The Oklahoma State Chamber of Commerce has been an opponent of State Question 832, saying that it would crush working families through price increases on the heels of record inflation. To learn more, visit Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
