February 6, 2012
BIXBY, Okla. - Governor Mary Fallin is proposing a plan to drastically cut state income taxes for all Oklahomans, eliminating the tax entirely for one bracket.
Fallin announced the Oklahoma Tax Reduction and Simplification Act Monday, during the State of the State address.
Currently, there are seven tax brackets in Oklahoma, under Fallin's new plan, there would only be three.
A couple making $30,000 or less would not pay state income taxes at all.
"$30,000 and below, I mean that revenue would just go right back into the economy it's going to create more jobs and it's going to help me personally," said Bixby resident, Rob Emanuel.
Emanuel is hopeful the new tax plan becomes a reality, he says it's tough to make ends meet for his family of five.
"The means of our particular incomes at this particular time are not enough to sustain the family that we currently have," said Emanuel.
The Emanuel's are part of 12,000 families that get a little help from the Bixby Community Outreach Center.
"We finding that both parents are working adults, making minimum wage, or maybe just a little bit above and it's very difficult for them to make it on those particular salaries," said Exec. Director Natalie Kemmerly.
Kemmerly says this tax break would be a major windfall for the families they serve.
"If they have a benefit of not having to pay state tax, that is just money in their pockets I think can be used in the city for other spending,"
The tax plan would also benefit families that make more than $30,000.
A dual income between $30,000-$70,000 would be taxed at 2.25%
Families making more than $70,000 would be taxed 3.5%
The current state income tax rate is 5.25%.
"It's a win-win situation. It's a win-win situation," said Emanuel.
Emanuel says his family will be the true winners.
"We would do more together, we would get out more together as a family," said Emanuel.
Some are critical of the plan, the Oklahoma Policy Institute released a statement Monday, saying a further reduction in state revenue would have a negative impact on state services.