Oklahoma City, OK, USA – On June 10, 2024, Republican lawmakers in Oklahoma introduced a new tax reform bill aimed at reducing the financial burden on middle-class families. The legislation, named the “Oklahoma Family Tax Relief Act,” is designed to cut both personal income tax rates and property taxes for homeowners, marking one of the most significant tax relief proposals in recent years.
Governor Kevin Stitt, a vocal supporter of the bill, lauded the legislation as a necessary step to ease the financial pressures on everyday Oklahomans. “This tax relief will help middle-class families keep more of their hard-earned money, while also attracting new businesses to our state,” Stitt said at a press conference following the bill’s introduction. The bill proposes a reduction in the state’s top income tax rate from 5% to 3.5% and introduces a cap on property tax rates, which proponents argue will alleviate the rising cost of homeownership for residents.
Republicans in the state legislature argue that the tax cuts will stimulate economic growth by leaving more disposable income in the hands of consumers, allowing them to spend more and thereby support local businesses. State Representative Mike Osburn, one of the key authors of the bill, argued that the tax cuts will also encourage businesses to relocate to Oklahoma, spurring job creation and further economic expansion. “This is a win for both families and the business community,” Osburn said.
Opponents of the bill, however, argue that the proposed tax cuts could lead to significant budget shortfalls, potentially affecting funding for essential state services such as education, healthcare, and infrastructure. Democratic State Senator Carri Hicks expressed concerns that the bill’s benefits would primarily favor wealthier Oklahomans and large corporations, while leaving lower-income residents with fewer public resources. “While tax cuts for the middle class sound appealing, they come at the cost of vital public services,” Hicks said. “We need a more balanced approach.”
Polling conducted by the Oklahoma Poll following the bill’s introduction revealed that 56% of Oklahomans supported the proposed tax cuts, with many expressing relief over the potential reduction in their income and property tax rates. However, 38% of respondents raised concerns about the long-term fiscal impact, with some believing the tax cuts could lead to increased cuts in public services and education.
As the legislation moves through the state legislature, it remains to be seen whether the tax cuts will deliver on their promises of economic growth or whether they will lead to unintended consequences, such as increased budgetary constraints.
