Oklahoma Policy Institute: Strengthening the Grocery Tax Credit Would Provide Fiscally Smart Tax Relief to Working Oklahomans
ITEP Work in ActionOklahoma can effectively eliminate the state and local sales tax on groceries for most low-income families by strengthening the Sales Tax Relief Credit. At a time when many Oklahomans are struggling to put food on the table and are at risk of eviction, a more robust Sales Tax Relief Credit can help put money back into the pockets of those who need it most. Doing so would bolster family finances, make purchasing food more cost-effective, and stimulate our local economies.
Oklahoma has earned the dubious distinction as one of the Institute on Taxation and Economic Policy’s “Terrible 10” for states with the most regressive tax policies. A regressive tax policy means lower-income Oklahomans pay a higher tax rate than their wealthier counterparts. Oklahoma’s heavy reliance on the sales tax contributes to this regressivity, and it is made worse by the fact that Oklahoma is one of only seven states that fully tax groceries.