Oklahoma City, OK, USA – On April 3, 2025, Oklahoma Republicans rolled out a new tax reform proposal designed to provide significant tax relief for residents and businesses in the state. The plan, introduced by Governor Kevin Stitt and State Senate President Pro Tempore Greg Treat, focuses on reducing both personal income tax rates and corporate tax rates. With the state grappling with the effects of inflation and a slower-than-expected recovery in certain industries, the Republican-led legislature is framing the reform as a crucial step toward fostering economic growth and increasing competitiveness with neighboring states.
Governor Stitt, in a public statement following the announcement, highlighted the urgency of cutting taxes to ensure that Oklahoma remains attractive for both businesses and individual taxpayers. “The pandemic and inflation have hurt working families and small businesses across the state. Our tax reform will put money back in Oklahomans’ pockets and create a more favorable environment for job creators to invest in our state,” Stitt said. The plan calls for a phased reduction in the state’s top personal income tax rate from 5.0% to 3.5% over the next three years, as well as a cut in the corporate tax rate from 4.0% to 3.0% by 2027.
Senator Greg Treat, a key proponent of the reform, noted that Oklahoma must adapt to the changing economic landscape by reducing taxes on businesses, especially small enterprises, which are vital to the state’s economy. “If we want to grow Oklahoma, we need to foster an environment where companies feel confident enough to expand, invest, and hire,” Treat said.
Support for the tax cuts is strong within Oklahoma’s Republican ranks, with several business leaders backing the proposal. The Oklahoma State Chamber of Commerce, led by President Fred Morgan, praised the plan as a much-needed catalyst for economic expansion. “Lower taxes are essential to creating jobs, supporting small businesses, and ensuring that Oklahoma remains an attractive place to live and work,” Morgan said.
However, the proposal has faced criticism from Democrats and progressive advocacy groups, who argue that it could exacerbate income inequality and strain public services. State Representative Collin Walke, a prominent Democratic voice in the legislature, expressed concern that the tax cuts would primarily benefit the wealthy and large corporations, while leaving working-class Oklahomans without the support they need. “We cannot afford to prioritize tax breaks for the wealthy while underfunding our schools and essential public services,” Walke argued.
Polling data released in April indicates that the proposal is popular among conservative-leaning voters, with 68% of Republicans supporting the tax cuts. However, support drops to 44% among independent voters, and only 29% of Democrats express approval. Urban residents, particularly in Oklahoma City and Tulsa, have voiced concern about how the tax cuts could impact funding for local services.
The reform package is expected to face intense scrutiny as it moves through the state legislature. With strong Republican control in both chambers, it is likely to pass, but the debate will continue as policymakers weigh the long-term effects of the cuts on the state’s fiscal health and public services.
