Topic: Budget & Tax

Let’s not kid ourselves: Oklahoma can’t run without income tax revenue

Income tax is a necessary revenue source for Oklahoma’s fiscal health. Reducing or eliminating income taxes provides almost no relief for the segment of Oklahoma’s population who needs it most: low- and middle-class taxpayers. In fact, the elimination of income… Read more [More...]

Governor’s costs for his proposed income tax cut have quietly increased. Here’s why lawmakers should prioritize targeted tax credits to help working families.

Last month, when the governor initially announced a proposal to cut the state’s personal income tax by a half-percent, the Oklahoma Policy Institute raised the flag that these cuts would cost about $660 million in state revenue annually – nearly… Read more [More...]

Who really wins from tax cuts? (Hint: It’s probably not you) 

During today’s State of the State address, the governor is expected to renew his call for cutting taxes in Oklahoma. The "path to zero" is a dangerous road. [More...]

FACT CHECK: How would the governor’s proposal to cut, eliminate personal income tax affect Oklahoma?

Gov. Stitt has called for cutting then eliminating the state's personal income tax. Here is an estimate of how it would impact Oklahomans and what it would cost. [More...]

Fact Check: How much would Oklahomans save with a 0.5% personal income tax cut?

Proposal Gov. Stitt has proposed a 0.5% cut to the state’s individual income tax rate. (January 29, 2025) Related: This income tax cut would be his first proposed step to eventually eliminate the state’s personal income tax, which he calls… Read more [More...]

OK Policy comments on revenue numbers estimated during December’s Board of Equalization meeting

Statement from Aanahita Ervin, OK Policy’s Fiscal Policy Analyst: The Board of Equalization on Friday certified an $8.225 billion estimate of funds for the governor’s Fiscal Year 2026 budget proposal. Given this is an early estimate, lawmakers should not view… Read more [More...]

Tax credits are anti-poverty tools | Oklahoma Senate Interim Study | Oct. 10, 2024

Targeted tax credits can be used as a tool to fight poverty in Oklahoma. The tax system is a critical part of the safety net with more than a third of all public support for U.S. families delivered through tax provisions. Hence, tax credits can drastically decrease poverty. [More...]

Fiscal Year 2025 Budget Highlights

In nominal dollars, this year's Oklahoma budget is the largest in state history. However, in real dollar value, it has lost a lot of its buying power when adjusted for inflation and population growth. [More...]

Oklahoma should adopt IRS Direct File

Oklahoma can opt in to Direct File for the 2025 tax season, which would offer taxpayers free and easy filing by integrating our state online tax filing tool. [More...]

Fact Check: Will Oklahoma families save $800 a year from eliminating the state portion of the grocery sales tax?

On Aug. 14, Gov. Kevin Stitt said that Oklahoma would again not be participating in a summer food program for hungry schoolchildren. In that announcement, his spokesperson suggested it was not necessary, in part, because "Governor Stitt delivered for families by signing the grocery tax elimination bill, saving Oklahomans an average of about $800 per year at the grocery store." Our fact check shows this is not true. [More...]