To: Members of the Oklahoma House of Representatives
From: Americans for Tax Reform
Re: HB 3635
On behalf of Americans for Tax Reform (ATR) and our supporters across Oklahoma, I urge you to support tax reform that reduces the burdens on Oklahoma families and businesses, and advance HB 3635, which would gradually reduce, and eventually eliminate, the state income tax.
Last year, 14 states cut taxes. New Hampshire and Louisiana set a path to become the 9th and 10th states with no income tax. In the region, Texas already has no income tax, and Arizona is moving to a nationwide low 2.5% flat tax (with the intent to eliminate its income tax). With more mobility due to the pandemic and work-from-home options, states are competing beyond their regions as well.
In 2021 the 10 states that gained the most residents from domestic in-migration had an average total state and local tax burden as a percentage of income of 7.7%, notably lower than the 9.9% of the 10 states that lost the most residents. Oklahoma’s rates and numerous brackets leave plenty of room for improvement.
Governor Kevin Stitt has offered his support for reform, saying in his State of the State address, “My vision is to create a Taxpayer Protection Plan that responsibly lowers income taxes according to our state revenue.”
Using revenue triggers is a strong policy option to reduce income taxes over time, by reducing income tax rates based on growing revenue figures. When revenue targets are met, tax rates go down. This avoids temptations to pursue politically unpopular “pay-fors,” expanding other taxes that limit the benefits of income tax cuts.
ATR applauds the House’s passage of HB 3349 to eliminate the grocery tax, and urges you to continue to prioritize tax cuts with HB 3635. With the passage of this legislation, Oklahoma would be poised to compete with any state in attracting new residents and businesses, while making it easier for families to make ends meet and build their futures.
ATR supports HB 3635, which would responsibly eliminate the state income tax, and urges you to vote yes.
Americans for Tax Reform