On January 1st, Oklahoma made the latest in a series of cuts to the top income tax rate. The cut is happening even though we are facing a massive budget hole and a mid-year revenue failure. This tax cut is expected to reduce state revenues by $147 million in the upcoming budget year, forcing even deeper cuts that will damage our economy and further harm our schools, health care system, public safety, state parks, and other important services that have already absorbed years of cutbacks.
The median Oklahoma household will get only $29 from the cut to the top rate, while two out of five households will get nothing at all because they earn too little to have any of their income taxed at the top rate. Meanwhile, the wealthiest 1 percent of households will receive, on average, $2,009.
With the help of the Institute on Taxation and Economic Policy, we’ve created an online calculator that estimates how much you can expect from this year’s tax cut.
If you will be receiving a tax cut this year but, like the majority of Oklahomans, believe it’s short-sighted to be cutting taxes when our schools and other core services are facing severe budget cuts, we hope you will consider donating all or some of your tax cut to OK Policy to help us fight for sensible, fiscally-sound tax and budget policies. You may also consider donating to a local or statewide non-profit organization that is supporting the Oklahomans who are being hurt by irresponsible tax and budget policies.