Gov. Kevin Stitt Responds To Senate Budget Proposal, House Tax Cuts

Tax cuts are back on the table at the Capitol after a handful of bills passed out of the state house this week, and we are getting a look at the state budget for the 2025 tax year.

Friday, March 15th 2024, 4:38 pm

We’re getting the first look at the state budget for 2025 as part of the state senate’s push to be more transparent and show where our tax dollars are going. 

Tax cuts are back on the table at the Capitol after a handful of bills passed out of the state house this week.

The governor has promised to sign any tax cut that comes across his desk.

“I'd love to get those across the finish line,” Governor Kevin Stitt said.

Three main bills to cut corporate and personal income taxes passed out of the state house this week. 

“It's really just a path to zero, so I think that's what the house wants to get Oklahoma back on a path to zero,” Stitt said.

HB 2948 phases out the corporate income tax over five years by reducing the amount of tax due each year by 20% increments beginning in the 2024 tax year. 

HB 2949 establishes a path to eliminate the state income tax completely.

Beginning tax year 2025, every year that the cumulative revenue growth is equal to or greater than $400 million, revenue triggers to allow the personal income tax rate to be cut by .25 percent. 

HB 2950 replaces the bracket system for personal income tax with a 4.75 percent flat tax beginning the tax year 2025. 

“What that does is it literally gives an absolute tax cut for every single Oklahoman, but it removes taxes from the very poorest Oklahomans,” Stitt said.

Now, Governor Stitt is once again putting pressure on the Senate to get those cuts to his desk.

“When you have excess revenue, let's trigger a tax cut. We've collected more revenue than we need, so let's not create more government programs; let's give that back to the taxpayer,” Stitt said.

However, the Senate has released a preliminary budget, saying additional tax cuts are unlikely this session. 

The budget is coming out more than a month before it has been released in years past.

Stitt said he applauds the Senate for their budget transparency but says the overall number is too high.

“Here's the deal: it's still too much money,” Stitt said. “You can't say we don't have money to cut taxes and then increase expenses.”

The budget is topping out at $12.3 billion, which is about $1 billion more than the state has available in recurring revenue.

“We can't keep spending savings,” Stitt said.

The two chambers will start negotiating the final number, but the governor is pushing for a lower one.

“You know me, I am for flat budgets, I am for limited government. I'm going to keep hammering that we don't need to keep spending our savings that will put us in a bad situation when I'm gone,” Stitt said.

The Senate is expected to vote on the budget resolution Monday at 1:30 p.m.


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