Fact Sheet: Oklahoma’s Tax Cuts: Who Benefits?

This fact sheet explores the distribution of benefits from the two largest tax cuts enacted in Oklahoma between 2004 and 2006, based on analysis conducted for OK Policy by the Institute for Taxation and Economic Policy. Almost three-quarter of the total benefit from lowering the top income tax rate, equaling $423 million, will go to the wealthiest fifth of households, with income over $75,700. Just 3 percent of the total benefit, totaling 17 million, goes to the poorest 40 percent of households, with incomes below $27,800. By contrast, more of  the benefit from raising the standard deduction goes to low- and middle-income households. Since the state must balance its budget, tax cuts directly limit the resources available to improve underfunded schools, social services and infrastructure.