The Oklahoma House on Wednesday approved a personal income tax cut in a special legislative session, despite uncertainty about whether the state Senate will vote on the issue.
After an hour of debate, the House passed on a party-line vote of 71-20 a bill to implement a 0.25% cut to all state income tax brackets.
The bill now goes to the Senate, where it is not expected to be voted on soon.
Senate President Pro Tem Greg Treat has said his chamber won’t vote on tax cut proposals until legislative leaders and Gov. Kevin Stitt reach an agreement on the issue.
“We are here again on this issue because the other legislative branch, the other legislative chamber that makes up this state’s Legislature has refused to take up this issue and take a simple vote on it,” House Speaker Charles McCall said in a rare floor speech.
McCall, R-Atoka, said the 0.25% cut doesn’t go far enough, but it delivers what Stitt requested when he called the special session. McCall said his chamber will vote on additional tax cuts during the regular, four-month legislative session that begins Monday.
He noted the state has record savings of more than $4 billion, and Oklahomans are struggling financially amid high inflation.
“It is time to help the people of the state of Oklahoma,” McCall said. “They do a better job of spending their money than we do.”
Democrats argued the cut would disproportionately help the wealthiest Oklahomans while the benefits would be negligible for low-income residents and middle-class families.
For years, Democrats have argued low-income Oklahomans would benefit most from eliminating the state’s portion of the grocery sales tax. The House previously passed legislation to eliminate the grocery tax, in addition to a slew of other tax reform proposals that stalled in the Senate.
Rep. Mickey Dollens, D-Oklahoma City, chalked the special session and the tax cut proposal up to election year politics. All state House seats and half of the Senate will be up for election this year. He also warned the state could once again face regular budget shortfalls if lawmakers continue cutting taxes.
Rep. Forrest Bennett, D-Oklahoma City, said Oklahomans are better served by having well-funded government services rather than a tax cut.
“As good as it feels to free up money for tax cuts, it also feels really good when someone on the street tells me a government service helped them,” he said.
Stitt has said the income tax cut would cost the state about $250 million annually once fully implemented.
Lawmakers last cut state income taxes in 2021.
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