Thursday, February 08, 2018

Fallin/Step Up income tax hike is higher than we're being told

***TAXPAYER ALERT***
The Legislature is moving to hear HB1037XX, the Step Up/Fallin income tax hike, in the Joint Committee on Appropriations & Budget (JCAB) in both the House and Senate today.

Running the figures IN THE BILL, a married couple filing jointly, with two children, earning $60k per year and taking the standard deduction would pay $187.65 in new income taxes.

Step Up Oklahoma says they would pay "$85 to $97" more, but that is absolutely NOT the case when the actual bill language is examined.

  • 2017 State Income Tax under this scenario is $1810
  • Under the Fallin/Step Up bill, the tax is $1997.65
  • This is an increase of $187.65, 193.45% higher than the Step Up estimate

DETAILS
Scenario: married couple filing jointly, 2 children, taking the standard deduction, earning $60,000 per year.

2017 - current tax code
$12700 standard deduction, $1000 per individual exemption (x4) = $43300 AGI

Married-filing-jointly tax brackets:
0.5% on first $2000 = $10
1% on next $3000 = $30
2% on next $2500 = $50
3% on next $2300 = $69
4% on next $2400 =$ 96
5% on everything above ($31100) = $1555

2017 STATE INCOME TAX = $1810

2018 - new proposed income tax code
$10500 standard deduction, no personal exemptions = $49500 AGI

New married-filing-jointly tax brackets:
0.5% on $0-1999 = $10
1% on $2000-4999 = $29.99
2% on $5000-7499 = $49.98
3% on $7500-9799 = $68.97
4% on $9800-12199 = $95.96
4.6% on $12200-35999 = $1094.75
4.8% on $36000-99999 = 648
5% on $100000+ = $0

2018 STATE INCOME TAX = $1997.65 
$187.65 more in state income tax than current code

Other scenarios

  • Married couple filing jointly, 2 kids, standard deduction, earning $40k: $176.75 more in taxes (Step Up said $40 to $48 more)
  • Married couple filing jointly, 2 kids, standard deduction, earning $80k: $147.70 more in taxes (Step Up said $85 to $97 more)
Sources for information: HB1037XX
2017 State Income Tax tables
Step Up Oklahoma tax bracket projections

1 comments:

Unknown said...

and what really makes me angry , is many of us are retired and on a budget with no wage increases . but you want more of my income . how about putting a previsions in their that all retirees as well as seniors are excluded ?