May 20th, 2016
UPDATE: Governor Fallin veto is last chance to save EITC this year
The Legislature has approved SB 1604, which reduces or eliminates entirely the state EITC for some 200,000 families (see our statement). Governor Mary Fallin can either sign or veto SB 1604. Click here to email the Governor or call her at (405) 521-2342 and ask her to veto SB 1604. After normal business hours, you can call the Governor’s 24-hour phone line and leave a comment at (405) 522-8857. See this blog post for more information and talking points on the EITC.
Click here to see how many families in each House and Senate district receive the EITC and how much money families in each district will lose under SB 1604.
Cutting these credits would increase taxes for more than one-third of all Oklahomans. The median middle-income Oklahoma household would see its taxes increase by $32 — more than what these families received from this year’s income tax cut ($29).
Families with children would be most affected. A family of four that earns $35,000 a year could see their taxes increase by $180 under the House-Senate plan to eliminate the Child Tax Credit and reduce the EITC and Sales Tax Relief Credit. Among two-parent families with two children, everyone making $71,000 or less would see a net tax increase.
These tax credits are targeted assistance designed specifically to encourage work (EITC), support basic nutrition (Sales Tax Relief Credit), and strengthen families with children (Child Tax Credit). These types of credits have lifted millions out of poverty nationwide. They provide just enough breathing room in a family budget to ensure that basic needs are met and that other forms of assistance aren’t necessary.
Ending these credits would shift taxes onto those who have benefited least from Oklahoma’s income tax cuts. These same families suffer most when Oklahoma cuts education funding, slashes health care, and makes other deep cuts to core public services. Asking for more pain from those who are already struggling most while refusing to reconsider the income tax cuts for top earners that helped get us into this mess would be a deeply troubling path for Oklahoma lawmakers to take.
This video from 2012 (the last time these tax credits were under threat in Oklahoma) shares stories of how important these credits are for regular Oklahoma families.
Learn More / Do More
- Contact Your Legislators
- New bill would devastate a key tax credit for working families
- Pastoral letter regarding broad-based tax credits
- Oklahoma leaders have their sights on the wrong credits (Oklahoman op-ed)
- Oklahoma's Revenue Options for the Budget Emergency
- New budget plans would go after low-income parents to fix state’s revenue problems (OK Policy)
- Protect Broad-Based Tax Credits (Fact Sheet)
- The Tax Shift Rears Its Head (OK Policy)