Stitt backs away from .25 personal income tax cut; calls for 'flattening' of income tax brackets

Legislative leaders and Republican Gov. Kevin Stitt met Thursday for the second budget summit hosted by the governor's office. The meeting followed one on Monday that featured lots of political rhetoric but few decisions.

Thursday's meeting was more of the same.

While both Stitt and House Speaker Charles McCall have continued to push for another cut in the state's personal income tax, Senate Pro Tempore Greg Treat remained firm in his opposition.

However on Thursday, Stitt appeared to back away from his previous call for a .25% cut in the personal income tax and, instead, called for the elimination of all personal income tax brackets except the top 4.75%. "I'm kinda taking the .25% cut off the table," the governor said.

Stitt said there was "a little confusion" about his tax cut proposal and did not immediately elaborate on his bracket elimination idea.

More: Budget summit highlights divisions, priorities between Legislature and governor's office

"My proposal is let's just help the poorest Oklahomans. If we just flatten out all the brackets but leave the top, 4.75 (percent) bracket at the top that would help the lowest and poorest Oklahomans deal with inflation," the governor said.

During his State of the State address, the governor called for a .25% cut in the personal income tax.

Oklahoma Legislature has already made costly tax cuts, Senate Pro Tempore Greg Treat says

Thursday, Stitt estimated the income tax cut would cost about $300 million in revenue and put the state on the path to a zero income tax rate. "A path to zero is when we have excess revenue next year or the year after it automatically kicks in a quarter point tax cut," he said.

Treat countered that lawmakers passed the largest tax cut in history with this session by eliminating the state's portion of the grocery sales tax. Treat said that cut would cost more than $400 million.

Stitt said he was "excited and optimistic" that the group was talking about tax cuts. Treat — not so much. "Let me be clear," Treat said. "Our position has not changed on that. We just want to fully vet the proposals you all brought."

Echoing his previous statements, Treat said he was concerned that a .25% cut would be too expensive this year.

Like Monday's meeting Thursday's summit was, at times, tense. House budget Chairman Rep. Kevin Wallace continued to raise questions about the Senate's budget process. Still, some progress was made, lawmakers agreed on several areas of education funding, including a $2.6 million line item to continue to pay student teachers for the next year.

The 2024 legislative session adjourns at 5 p.m. on May 31.

This article originally appeared on Oklahoman: Oklahoma governor, speaker continue call for tax cuts at budget summit