What you can do with your tax cut

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.

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ABOUT THE AUTHOR

Gene Perry joined OK Policy in January 2011. He is a native Oklahoman and a citizen of the Cherokee Nation. He graduated from the University of Oklahoma with a B.A. in history and an M.A. in journalism. Gene also serves on the board of the Oklahoma Sustainability Network, is a trustee of the Oklahoma Foundation for Excellence, is a member of Investigative Reporters and Editors, and has chaired the communications advisory committee for the State Priorities Partnership, a nationwide network of state fiscal policy think tanks. He lives in Tulsa with his wife Kara Joy McKee, who is a Tulsa City Councilor.

5 thoughts on “What you can do with your tax cut

  1. As a “likely-to-be-furloughed” State employee, I’ll be sure and save up that $12. I’m certain it will help out as it has been very tight financially as it is currently. In fact, nearly everyone in my office works 2 jobs to make ends meet…but hey, it’s all good,Oklahoma is cutting STEM education funding too, so the future looks bright here, right?

  2. Guess all the fluoride in our water is working as intending, and I dont mean to stop dental decay but to cause ‘mental’ decay!Its a fact. It is a drug being fed to us without informed consent and our permission, and cause terrible harm to us all! If we want fluoride, we can get it in toothpastes or mouthwash, not force fed the entire community!
    Take the money used for buying fluoride and give it back to needed programs, every penny counts!
    Maybe then the people in Oklahoma will wake up and not just see see the massive corruption but get up and do something about it!
    Face lifts for the Capitol building, bailing out an unnecessary museum, MAPS park benefiting the wealthy while STEMS programs are cut?
    This is NOT the Oklahoma I grew up in.

  3. so what can we do? Call our district rep or the governor and let them know how displeased we are? Like that will make any difference.

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