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 to stretch out Oklahoma’s tax brackets, cut the top rate in half, and eliminate dozen of tax credits, exemptions, and deductions. This year, the Governor proposes simply repealing the top rate without identifying how it will be paid for.

So how would this latest proposal affect Oklahomans’ taxes? The Institute on Taxation and Economic Policy calculated how repealing the 5.25% rate would affect Oklahomans at different income levels. They found that 43 percent of households would receive no tax cut at all. Among households that did receive a tax cut, the median benefit would be just $39.

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