Oklahoma City, OK, USA – On May 18, 2025, Oklahoma Governor Kevin Stitt signed a sweeping tax reform bill into law, marking one of the most significant fiscal policy changes in the state’s recent history. The new legislation is designed to reduce the state’s income tax rates, eliminate certain business taxes, and expand tax credits for low-income families. Governor Stitt, a Republican, has championed the bill as part of his broader agenda to foster economic growth and improve Oklahoma’s competitive standing within the region.
Governor Stitt, who made tax cuts a central part of his 2024 re-election platform, hailed the new law as a critical step toward reducing the state’s tax burden and encouraging business investment. “This is a victory for every Oklahoma family and small business,” Stitt said in a statement following the signing. “By cutting taxes and streamlining our tax code, we are creating an environment where families can keep more of their hard-earned money, and businesses can thrive.” The law gradually reduces Oklahoma’s personal income tax from 5.0% to 4.2% over the next five years and eliminates taxes on small businesses making under $1 million in revenue.
The law has been supported by business groups, including the Oklahoma State Chamber of Commerce, which believes the tax cuts will attract new businesses to the state and help existing companies expand. “This tax reform will make Oklahoma a more attractive place for businesses to invest, create jobs, and contribute to the local economy,” said Chamber President Chad Warmington.
However, the tax reform has faced criticism from progressive groups and some Democratic lawmakers, who argue that it could lead to a reduction in funding for critical public services, such as education and healthcare. “This tax cut is a giveaway to the wealthiest Oklahomans and large corporations, and it will come at the expense of our schools, healthcare, and infrastructure,” said State Senator Carri Hicks, a Democrat who opposed the bill. “Instead of prioritizing tax cuts for the wealthy, we should be investing in the services that Oklahomans rely on every day.”
Polling data from the Oklahoma Polling Project shows that 67% of Republicans support the tax cuts, viewing them as a necessary tool for fostering economic growth and reducing the state’s fiscal burden. In contrast, only 34% of Democrats favor the tax reforms, with 58% expressing concern about their potential negative effects on public services. Independent voters are divided, with 49% supporting the cuts and 46% opposing them.
As the law is implemented, Oklahoma will likely experience continued debates over the long-term effects of such tax policies. While supporters argue that the reforms will lead to greater economic prosperity and job creation, critics contend that the state could face budget shortfalls and a reduced capacity to fund essential services. The success or failure of these tax cuts will depend largely on the broader economic effects they generate in the coming years.
