By now, most everyone in Oklahoma has seen the ads for the governor’s plan to cut the income tax .5% each year until we get to 0% — or his “half and a path” plan. But what does that really mean for Oklahomans?
For starters, we know that an across-the-board income tax cut does not benefit everyday working Oklahomans, but instead benefits the wealthiest Oklahomans. Full elimination of the income tax would actually raise taxes for our lowest-income earners and disproportionately benefit our highest-income earners.
According to Oklahoma Policy Institute, a 0.5-percent cut to Oklahoma’s personal income tax cut would reduce state revenue by an estimated $660 million annually when fully implemented.
Aside from that, about a third of Oklahoma’s general revenue is attributed to income tax revenue. This means a cut to the income tax would be a cut for state funding for services Oklahomans need, like public education, health care and infrastructure.
Other states that have already implemented a similar income tax cut are facing serious budget shortfalls and the threat of more cuts being made to core services.
An across-the-board income tax cut is a bad idea, but particularly for the next few years while millions of federal dollars are hanging in the balance. Many state agencies are reaching out to me, concerned about the future of their services with funding no longer being certain, and I don’t blame them. We should be doing more to work with our congressional delegation to protect state agencies when we know about half of our state’s funding comes from federal grants. Instead, the governor is focused on making life even easier for the wealthiest people in Oklahoma.
It’s no secret that Oklahoma is a poor state. Oklahoma is among the top 10 poorest states in the country. I put forth two pieces of legislation to give Oklahomans the financial relief they deserve. One was House Bill 2228, the Sales Tax Relief Credit, which modernizes and expands the Sales Tax Relief Credit in Oklahoma. The Sales Tax Relief Credit, created in 1990, is meant to help those who need it most by targeting tax relief to middle- and low-income families. Currently, the credit is $40; my legislation would increase the credit to $200 with additional benefits depending on dependents and other factors.
The second was House Bill 2229, which would raise the Earned Income Tax Credit (EITC) refund to 10 percent from 5 percent. The EITC has historically had bipartisan support because the credit has been effective for families and our economy.
Both of these bills were blocked by Republican leadership and never given a hearing, which begs the question: Are they really trying to provide tax relief for hardworking Oklahomans or only the wealthiest insiders who have access to the governor?
While the governor touts saving $157 million by returning federal health grants, Oklahomans are still feeling the financial and economic burden. They are concerned about the future of their state agencies and their funding and have received little to no reassurance that their needs will be considered.
Saving money is one thing, but slashing away core services is another. This will only end up costing our state more money and putting our most vulnerable Oklahomans in an even worse spot. Taxpayers will end up paying more to fill in the gaps, and we will be right back where we were less than a decade ago. How about that for leadership?
There are real solutions that can help Oklahomans keep more of their money, but an income tax cut is not one of them. If the governor wanted to help the lowest-earning Oklahomans, he would heed the advice of experts in our state who are offering solutions.
Oklahoma needs help when it comes to funding for our public schools, teachers and students; building safer roads and bridges; and creating better access to affordable health care. The income tax cut would harm those things we all care about and continue to make it more difficult for Oklahomans to access the resources they need.
The state’s budget is already in a tough spot, and I see no reason to tank it even further. Republicans can make all the cuts they want with DOGE-OK, but without taking care of Oklahomans, we will only see our state continue to drop in rankings across the country in areas most important to building our economy: education, health care and infrastructure.
Oklahomans are not silent when it comes to their needs. The governor is getting pushback from all across the state with his suggestion to cut the Forestry Service after wildfires ravaged our state less than a month ago. He needs to stop trying to please the president and mimic his administration and start listening to Oklahomans.
I posed these questions in a back-and-forth with him on X, and I’ll do it again here. Which services will he be willing to cut: education, health care, infrastructure public safety? Which taxes will he be willing to raise on everyday Oklahomans: sales, property ,small business?
It’s bad math to decimate our primary revenue source only to help a few. It isn’t about me and you; it’s about him.
Leader Cyndi Munson, the first Asian-American woman in the Oklahoma Legislature, advocates for education, justice reform and families. A dedicated leader, she champions public service and community engagement.
Opinions expressed on the commentary page, in letters to the editor and elsewhere in this newspaper are those of the author and do not necessarily reflect the opinions of ownership or management.
This article appears in OKC Ballet Shorts.