Oklahoma Policy Institute: The Tax Shift
ITEP Work in Action“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 tax rate from 5.25 percent to 4.75 percent. This would be paid for by eliminating numerous tax credits and exemptions, including broad-based credits going to hundreds of thousands of low and moderate income Oklahomans. The child tax credit, child care tax credit, earned income tax credit, and sales tax relief credit are all slated for elimination. The plan would also eliminate the personal exemption for all Oklahoma families.
An analysis by the Institute on Taxation and Economic Policy (ITEP) reveals that this change would amount to a tax increase for a majority of Oklahomans. “