Wednesday, March 4, 2009

Senate Approves Measure to Remove Income Tax Reduction Trigger

On a bipartisan vote, the full Senate has approved legislation to remove the statutory trigger required to reduce the state’s income tax from 5.5 percent to 5.25 percent, clearing the way for that reduction to take place in tax year 2010. Senator Mike Mazzei is the author of Senate Bill 315 which was approved on Tuesday.

“The tax relief we’ve approved in recent years strengthened our economy. It is one of the reasons we’re in better shape than other states,” said Mazzei, R-Tulsa. “As we move through the legislative session, we must continue to keep all economic development tools on the table.”

SB 315 would remove the existing trigger which requires four percent growth in the General Revenue Fund before the income tax rate can drop from 5.5 to 5.25 percent.

“Economists know that the type of tax relief resulting in the greatest economic stimulation is a reduction in income tax. Even the President’s economic advisors agree,” Mazzei said. “Certainly, as we move through the session, we’ll have to take many economic factors into consideration, but it is always important to let our citizens know we’re looking at options to ensure they can keep more of their hard-earned money.”

SB 315 next moves to the House of Representatives.

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