Claremore Daily Progress

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January 12, 2013

Senator proposes 2.95 percent income tax rate

OKLAHOMA CITY — An Oklahoma lawmaker has filed legislation to replace Oklahoma’s income tax structure with a flat tax of 2.95 percent.

The proposal by Sen. Patrick Anderson of Enid is Senate Bill 240 and would eliminate all income tax deductions, credits and exemptions.
Anderson says his plan is simple, fair and revenue neutral, and that there would be no loss of revenue to state government. 
He says the plan would treat all state taxpayers equally and give Oklahoma the lowest income tax rate in the nation among the 43 states that impose an income tax.
Seven states — Colorado, Illinois, Indiana, Massachusetts, Michigan, Pennsylvania and Utah— already have a flat income tax. A plan supported by Gov. Mary Fallin to cut and eventually eliminate the state’s 5.25 percent rate failed last year.

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