A modestly progressive income tax slightly offsets our regressive sales taxes. But Oklahoma lawmakers cut our top income tax rate by nearly 25 percent since 2004, further tipping the scales to the wealthiest households. Then while grappling with massive budget shortfalls caused in part by these tax cuts, lawmakers took aim at measures that primarily benefit low- and middle-income working families by making the state Earned Income Tax Credit non-refundable and freezing the state standard deduction, while leaving cuts to the top income tax rate in place.
ITEP Work in Action
Advocates and policymakers at the state and federal levels rely on ITEP’s analytic capabilities to inform their debates on proposed tax policy changes. In any given year, ITEP fields requests for analyses of policies in 25 or more states. ITEP also works with national partners to provide analyses of federal tax policy proposals. This section highlights reports that use ITEP analyses to make a compelling case for progressive tax reforms.
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ITEP Work in Action October 24, 2018 The Journal Record: Prosperity Policy: An Upside-down Tax System
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ITEP Work in Action October 23, 2018 Enid News & Eagle: A Low Tax State for Only Some Oklahomans
While Oklahoma has a reputation as a low tax state, poor and middle-income Oklahomans are actually paying a greater share of their income in taxes than the national average, while the richest 5 percent of households — with annual incomes of $194,500 or more — pay less.
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ITEP Work in Action October 21, 2018 Tulsa World: Political Notebook: Report Says Oklahoma’s State and Local Taxes Among the Most Regressive in the Nation
Oklahoma’s state and local taxes are among the most regressive in the country, according to a report released last week by the Institute on Taxation and Policy.
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ITEP Work in Action October 17, 2018 Oklahoma Policy Institute: New Analysis: Low-income Taxpayers in Oklahoma Pay More than Twice the Tax Rate Paid by the Richest Oklahomans
While Oklahoma has a reputation as a low tax state, poor and middle-income Oklahomans are actually paying a greater share of their income in taxes than the national average, while the richest 5 percent of households — with annual incomes of $194,500 or more — pay less.
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ITEP Work in Action May 2, 2017 Oklahoma Policy Institute: Itemized Deduction Reform is a Promising State Budget Solution
When Oklahomans filed their state income taxes in 2016, more than 70 percent of households used the standard deduction, which was $6,300 for individuals and $12,600 for married couples filing jointly.… -
ITEP Work in Action January 10, 2017 Oklahoma Policy Institute: Private school tax subsidy blurs the line between charitable gift and money laundering
Carl Davis is Research Director at the Institute on Taxation and Economic Policy (ITEP), a non-profit, non-partisan research organization that works on federal, state, and local tax policy issues. Photo… -
ITEP Work in Action January 10, 2017 Oklahoma Policy Institute: The tax shift rears its head
Last week the Oklahoma Senate Finance Committee approved SB 977, a bill that would suspend 23 tax credits for the next two years as a way to partially address… -
ITEP Work in Action May 13, 2016 Oklahoma Policy Institute: New bill would devastate a key tax credit for Oklahoma working families
“Yesterday, a letter signed by more than 150 Oklahoma clergy was delivered to lawmakers and Governor Fallin, urging them not to slash key tax credits for working families to fix… -
ITEP Work in Action April 15, 2016 Oklahoma Policy Institute: High-income surcharge would help solve budget emergency
“The evidence is now undeniable that Oklahoma is facing a full-fledged emergency. With each passing day, the toll of budget cuts on Oklahoma families, schools, businesses, and communities becomes more… -
ITEP Work in Action January 12, 2016 Oklahoma Policy Institute: The Cost of Tax Cuts in Oklahoma
“Due to these cuts, Oklahoma’s top income tax rate has been slashed by almost a fourth, from 6.65 percent before 2004 to 5 percent beginning in 2016. The annual revenue… -
ITEP Work in Action March 31, 2015 Oklahoma Policy Institute: Halt the Tax Cut
The cut to the top income tax rate will provide minimal benefit to all but the wealthiest Oklahomans. The average middle-income household will see its taxes lowered $31 a year,… -
ITEP Work in Action March 12, 2015 Oklahoma Policy Institute: This nonsensical ‘double dipping’ tax break is costing Oklahoma millions
“Disallowing just the deduction for state income tax would yield the state $97 million, according to an analysis by the Institute for Taxation and Economic Policy. Only one in four… -
ITEP Work in Action January 21, 2015 Oklahoma Policy Institute: Low- and middle-income Oklahomans pay highest state and local taxes
A new study released today by the Institute on Taxation and Economic Policy (ITEP) and Oklahoma Policy Institute finds that low and middle-income Oklahomans pay over two times more in… -
ITEP Work in Action April 15, 2014 Oklahoma Policy Institute: 5 things you should know about Oklahoma taxes
It’s tax day — the annual event when procrastinators, or those who just like to live on the edge, rush to get their tax returns filed before the midnight deadline.… -
ITEP Work in Action February 18, 2014 Oklahoma Policy Institute: Tax cut will provide little benefit to most Oklahomans
The average Oklahoman would get just $29 from Governor Mary Fallin’s proposed income tax cut, while one-quarter of the total benefit would go to the wealthiest 1 percent of households,… -
ITEP Work in Action April 26, 2013 Oklahoma Policy Institute: Speak out against irresponsible tax cuts
An income tax cut deal has been reached between Governor Fallin and Legislative leadership. The proposal is moving through the Legislature as HB 2032. This fact sheet explains what’s in… -
ITEP Work in Action February 26, 2013 Oklahoma Policy Institute: What’s unaffordable?
The Governor’s assertion that extending Medicaid is unaffordable to Oklahoma is unconvincing in at least two respects. First, the study on which she bases her cost estimates makes clear that… -
ITEP Work in Action February 19, 2013 Oklahoma Policy Institute: Governor Fallin’s tax cut would do little to nothing for the average Oklahoman
In her State of the State address, Governor Fallin unveiled yet another proposal to cut Oklahoma’s income tax. Her plan is drastically scaled back from last year’s proposal, which attempted… -
ITEP Work in Action January 15, 2013 Oklahoma Policy Institute: Oklahoma’s Tax Cuts: Who Benefits?
Tax cuts enacted between 2004 and 2006 will reduce Oklahoma’s revenues by more than $800 million when fully phased-in. Among the many tax cuts, the two largest involved cutting the… -
ITEP Work in Action January 15, 2013 Oklahoma Policy Institute: Giving Credit Where Credit is Due: Boosting the Grocery Tax Credit Would Provide Targeted Help for Struggling Families
The family budgets of low- and moderate-income Oklahomans are under increasing strain from the rapidly rising costs of such essentials as food, fuel and utilities. Food costs rose 5.9 percent… -
ITEP Work in Action December 17, 2012 Oklahoma Policy Institute: The Tax Shift
“On the last Friday of 2011, the legislature’s tax reform task force released its proposals for changing Oklahoma’s tax system. The most significant recommendation was to cut the top income… -
ITEP Work in Action December 17, 2012 Oklahoma Policy Institute: The “Tax Cut” Bait and Switch
“As they ponder plans to cut Oklahoma’s top income tax rate, most lawmakers admit the state cannot afford a cut without eliminating many other tax breaks. They emphasize that we…