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Proposed legislation will attempt a five year phase-out of the state income tax for Oklahoma residents. Freshman State Rep. Josh Cockroft R-Tecumseh, author of H.B. 1543, the Taxpayer Relief Act of 2011, said that existing sales tax, use taxes and property taxes will be needed to pay for the proposed tax cut, with additional cuts to spending needed to make up for the loss of revenue.
“I am absolutely against any type or form of tax increase,” Cockroft said. “Our state is running best when it runs with reduced power, there are places and room for taxes, but what we have now is excessive.”
Revenues for the state totaled $6.321 billion in 2010, of which, $2.23 billion came from the state income tax alone. The state is currently $400 million over budget for the 2011 fiscal year. The state income tax is the single largest source of revenue for the state, with the sales tax the second largest.
“It just isn’t practical to remove a tax and not replace the revenue. This bill would have a dramatic impact on education in the state,” State Sen. Charlie Laster D-Shawnee, said. “Every year we see bills that are aimed at reducing taxes, like with the grocery tax, and the income tax. It’s admirable, I’m all for reducing the grocery tax, but I just don’t see it happening without either replacing the lost revenue or dramatically affecting public education. Over 50 percent of the budget goes toward education, and it has been that way since I joined the Legislature.”
Cockroft said that eliminating wasteful spending in the form of redundant agencies and jobs is one way to reduce the size of the state’s budget.
“We need to make sure that we don’t have duplication in agencies, or agencies that we don’t need,” Cockroft said. “We also need to look at some of these boards and agencies that aren’t related to how a government is ran. The Arts Council is one area where the government may not need to be involved.”
The 2011 budget allocated $5 million to the Arts Council.
President Barrack Obama and Gov. Mary Fallin, mentioned similar ideas of combining agencies as a way of reducing spending during the last State of the Union and State of the State addresses.
“We need to look at the budget the same way we would look at our pocketbook in our homes,” Cockroft said. “We wouldn’t be able to create a position that isn’t needed in our homes, that’s how we fix this budget shortfall.”
H.B. 1543 must pass through the House Revenue and Taxation Committee, before it can be sent to the Senate and the House floor for a vote. If the bill is passed by both the full House and Senate, it will be sent to the governor for her consideration and signature.
“If we can continue to get support for this bill, and we can get the people behind this and get them to call their representative, we have a really good chance of getting this passed and changing our way of life,” Cockroft said.
Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not collect state income taxes.
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Robby Short may be contacted by calling 214-3934
Proposed legislation will attempt a five year phase-out of the state income tax for Oklahoma residents. Freshman State Rep. Josh Cockroft R-Tecumseh, author of H.B. 1543, the Taxpayer Relief Act of 2011, said that existing sales tax, use taxes and property taxes will be needed to pay for the proposed tax cut, with additional cuts to spending needed to make up for the loss of revenue.
“I am absolutely against any type or form of tax increase,” Cockroft said. “Our state is running best when it runs with reduced power, there are places and room for taxes, but what we have now is excessive.”
Revenues for the state totaled $6.321 billion in 2010, of which, $2.23 billion came from the state income tax alone. The state is currently $400 million over budget for the 2011 fiscal year. The state income tax is the single largest source of revenue for the state, with the sales tax the second largest.
“It just isn’t practical to remove a tax and not replace the revenue. This bill would have a dramatic impact on education in the state,” State Sen. Charlie Laster D-Shawnee, said. “Every year we see bills that are aimed at reducing taxes, like with the grocery tax, and the income tax. It’s admirable, I’m all for reducing the grocery tax, but I just don’t see it happening without either replacing the lost revenue or dramatically affecting public education. Over 50 percent of the budget goes toward education, and it has been that way since I joined the Legislature.”
Cockroft said that eliminating wasteful spending in the form of redundant agencies and jobs is one way to reduce the size of the state’s budget.
“We need to make sure that we don’t have duplication in agencies, or agencies that we don’t need,” Cockroft said. “We also need to look at some of these boards and agencies that aren’t related to how a government is ran. The Arts Council is one area where the government may not need to be involved.”
The 2011 budget allocated $5 million to the Arts Council.
President Barrack Obama and Gov. Mary Fallin, mentioned similar ideas of combining agencies as a way of reducing spending during the last State of the Union and State of the State addresses.
“We need to look at the budget the same way we would look at our pocketbook in our homes,” Cockroft said. “We wouldn’t be able to create a position that isn’t needed in our homes, that’s how we fix this budget shortfall.”
H.B. 1543 must pass through the House Revenue and Taxation Committee, before it can be sent to the Senate and the House floor for a vote. If the bill is passed by both the full House and Senate, it will be sent to the governor for her consideration and signature.
“If we can continue to get support for this bill, and we can get the people behind this and get them to call their representative, we have a really good chance of getting this passed and changing our way of life,” Cockroft said.
Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not collect state income taxes.
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Robby Short may be contacted by calling 214-3934
