Oklahoma To Consider New Tax Plan

OKLAHOMA CITY -- Gov. Mary Fallin says her plan to overhaul Oklahoma's income tax structure will be put before legislators next week. The governor's plan would reduce the state's maximum tax rate to 3.5 percent and eliminate nearly all deductions and exemptions.

A pair of separate tax proposals passed a Senate committee Tuesday despite worries that cuts would threaten state services.

Sen. Mike Mazzei of Tulsa would cut the top tax rate from 5.25 percent to 4.75 percent over the next two years and offset the lost revenue by eliminating most tax deductions. His bill also would reduce the corporate income tax rate.

A bill by Sen. Clark Jolley of Edmond would cut the top income tax rate to 2.25 percent next year and phase out the income tax completely by 2022