With new law, Oklahomans can donate to scholarships under new federal Education Freedom Tax Credit

Crosswhite Hader Celebrates Federal Scholarship Tax Credit Becoming Law

OKLAHOMA CITY (April 30th) – Rep. Denise Crosswhite Hader, R-Piedmont, today is reminding Oklahomans they can opt-in on a federal income tax credit next year for individual contributions to scholarship granting organizations (SGOs). Funding is to be used for scholarships for elementary and secondary education expenses.

Crosswhite Hader is the House author of House Bill 3704, which recently was signed into law by the governor. She said the federal program is similar to the Oklahoma Equal Opportunity Education Scholarship program, a state tax-credit program that supports scholarship efforts in Oklahoma.

Small: The compounding effect of good policy

The compounding effect of good policy

By Jonathan Small

The combination of good government policies, over time, has a compounding effect that reaps growing benefit for a state. The same is true of bad government policies.

Oklahoma’s loss of major company headquarters in recent months is tied to the latter and shows why lawmakers must not retreat from undoing the harmful policy legacy of Oklahoma’s first 100 years.

When officials with Devon Energy and Coterra Energy announced the two companies are merging, they also announced the combined company will be headquartered in Houston, Texas, not Oklahoma City.

Shortly after, Expand Energy—formerly known as Chesapeake Energy—announced a similar headquarters relocation.

Governor Stitt, legislative leaders announce $12.6B state budget deal

Governor Stitt, Legislature Announce Budget Deal

OKLAHOMA CITY (May 14, 2025) - Today, Governor Kevin Stitt, Senate President Pro Tempore Lonnie Paxton, and House Speaker Kyle Hilbert unveiled a comprehensive agreement aimed at cutting taxes, investing in key infrastructure, and strengthening Oklahoma’s business-friendly climate.

The agreement includes a quarter-point tax cut to the state income tax, a consolidation of income tax brackets and a true path to zero income tax, ensuring that Oklahoma stays competitive with surrounding states.

Small: Standing still is a poor strategy in state competition

Standing still is a poor strategy in state competition

By Jonathan Small

In politics, there is an unfortunate tendency among lawmakers to pass significant policy reforms … and then rest on their laurels.

Unfortunately, one year’s progress does not translate into permanent victory, as can be seen in the latest edition of the “Rich States, Poor States” report authored by economists Arthur Laffer, Stephen Moore, and Jonathan Williams.

The report ranks states in a variety of categories, including tax rates, workers’ compensation costs, and the number of public employees, among other policy variables.

In the latest edition, Oklahoma fell out of the top 10 states.

Small: State tax competition is fierce

State tax competition is fierce

By Jonathan Small

Oklahoma is generally perceived as a lower-tax state, but unfortunately our tax on work and investment—the personal income tax—remains among the highest in the region and (increasingly) across the country.

That’s a problem because the income tax has outsized, negative impact on investment and job creation.

Oklahoma’s personal income tax has been cut from 7 percent in the 1990s to 4.75 percent today, but other states’ leaders are not twiddling their thumbs.

OK Freedom Caucus calls for income tax cuts, spending reductions

Oklahoma Freedom Caucus Celebrates Passage of Path to Zero Income Tax

OKLAHOMA CITY, OK (April 10th) – The Oklahoma Freedom Caucus celebrates the passage of HB1539 which sets Oklahoma on a path to fully eliminate the state income tax. 

While this is a monumental step in the right direction, we now call upon the Oklahoma House of Representatives to immediately pass HB1539 to send it to Governor Stitt’s desk for his signature.

We remain steadfast in our calls upon the legislature to prioritize passing additional bills this session that will:

• Provide an immediate cut to the income tax of 0.5% or more
• Targeted budget cuts for all agencies at 5% or more
• Eliminate ghost employee positions, freezing any new hires, voluntary buyouts, and eliminating redundant positions

Here is who voted AGAINST the bill to phase out the state income tax:

• Boren (D)
• Dossett (D)
• Goodwin (D)
• Hicks (D)
• Howard (R)
• Jech (R)
• Kirt (D)
• Mann (D)
• Nice (D)

Oklahoma Freedom Caucus Sets Aim on Cuts: Income Tax Cuts and Budget Cuts

OKLAHOMA CITY, OK (April 9th) – The Oklahoma Freedom Caucus doubles down on their support for the growing movement among Oklahoma citizens demanding significant cuts to the state income tax and reductions in government spending.

“Oklahomans are sending a clear message: it’s time to lighten the tax burden on hardworking families and rein in growth in government spending,” said OKFC Chairman Shane Jett. “We stand with the people who are tired of seeing their earnings siphoned off by bloated budgets and inefficient programs to be doled out to bureaucrats.”

The Oklahoma Freedom Caucus calls upon the legislature to prioritize immediately passing bills this session that will:

• Provide an immediate cut to the income tax of 0.5% or more
• Put Oklahoma on a path to zero out the income tax entirely
• Targeted budget cuts for all agencies at 5% or more
• Eliminate ghost employee positions, freezing any new hires, voluntary buyouts, and eliminating redundant positions

Any proposed state budget that does not include budget cuts and both immediate and long term income tax cuts is a non-starter for the Oklahoma Freedom Caucus.

“We can’t tax and spend our way into prosperity,” Vice Chair Jim Olsen added. “Oklahoma can lead the way by embracing the same principles of limited government that are resonating across the nation. The people have spoken, and the Oklahoma Freedom Caucus is ready to fight for their vision.”

Small: An agenda for all statewide candidates

An agenda for all statewide candidates

By Jonathan Small

Candidates for statewide offices such as governor, attorney general and lieutenant governor are kicking off statewide campaigns. While candidates are very important, equally if not more important is what those statewide office candidates would accomplish, and how, if elected.

Oklahoma faces great opportunities and significant challenges; to address both, it will require newly elected officials to be willing to discuss those opportunities and challenges on the campaign trail and repeatedly commit to “do hard things” and help lead the state to meet the opportunities and challenges.

Small: Mississippi is beating Oklahoma (again)

Mississippi is beating Oklahoma (again)

By Jonathan Small

I recently noted that Mississippi students are dramatically outperforming their Oklahoma peers when it comes to reading.

Now Mississippi officials are seeking to dramatically outpace Oklahoma in the race for jobs by eliminating its tax on work and investment – the state income tax.

Mississippi currently has an income-tax rate of 4.7 percent, which is already lower than Oklahoma’s top rate of 4.75 percent, and the rate in Mississippi was also scheduled to fall to 4 percent in 2026.

But now, with passage of Mississippi’s House Bill 1, that state’s income tax is on the path to full repeal.

OK Senate Appropriations Committee passes tax reform measures

An income tax credit during years of growth, rather than a full blown tax cut? I'm a bit skeptical of the idea (it's certainly a novel proposal that I've never heard of before).

Senate Appropriations Committee Advances Tax Reform Measures to Strengthen Oklahoma’s Economy

OKLAHOMA CITY (March 6th) – The Senate Appropriations Committee passed a series of tax reform measures aimed at simplifying Oklahoma’s tax code, providing relief to individuals and businesses and promoting economic growth. 

Senate Bills 304, 299, 291, and 60, authored by Senator Dave Rader, R- Tulsa, and Adam Pugh, R-Edmond, address income tax structure, corporate tax fairness and taxpayer relief mechanisms.

Oklahoma Freedom Caucus releases 2025 policy agenda

Good stuff from the best group in the Legislature:

Oklahoma Freedom Caucus releases policy agenda

OKLAHOMA CITY (Feb. 17th) – Today, the Oklahoma Freedom Caucus led by Chairman Shane Jett, House Vice Chair Jim Olsen, and Senate Vice Chair Dusty Deevers released the following policy agenda for 2025.

For the 60th Legislature the focus of the Oklahoma Freedom Caucus is to advance the Freedoms of Oklahomans in four key areas:

Deevers files bills to end income tax, feral hog hunting hurdles, and EPA diesel regulations

State Sen. Dusty Deevers has filed a bundle of new bills that are well worth consideration by the Oklahoma Legislature:

Deevers Introduces Tax Cut Elimination Bills, Other Tax Cuts

OKLAHOMA CITY (Jan 15th) — Sen. Dusty Deevers, R-Elgin, has introduced a slate of legislation to reduce the tax burden on Oklahomans, including the following.

• SB305 to immediately eliminate the State individual income tax.
• SB322 to immediately eliminate the State corporate income tax.
• SB308 to gradually reduce the income tax by 1 percent per year until eliminated by 2029.
• SB323 to gradually reduce the State corporate income tax by 1 percent per year until eliminated in 2028.
• SB311 to reduce the gross production tax on the oil and gas industry from 7 percent to 5 percent.
• Various tax credits for Oklahoma families and family-oriented initiatives, including SB228, SB281, and SB328.

Small: The tax race is on, and Oklahoma’s losing

The tax race is on, and Oklahoma’s losing

By Jonathan Small

Since the 1990s, Oklahoma’s top personal income-tax rate has been cut from 7 percent to 4.75 percent. That’s a good start, but it doesn’t mean Oklahoma is a national leader. In the race to attract entrepreneurs and business capital, we’re in a 50-state race – and Oklahoma is starting to fall behind.

This month, several states cut income-tax rates, often to levels lower than Oklahoma.

In 2024, the citizens of Iowa paid an income-tax rate of up to 5.7 percent. But starting in January, they face only a flat tax rate of 3.8 percent.

Notably, when Iowa Gov. Kim Reynolds was elected in 2018, Iowa’s top income tax rate was 8.98 percent — the sixth highest in the country.

Small: Tax repeal must be priority

Tax repeal must be priority

By Jonathan Small

Now that this year’s elections have concluded, Republican caucuses have selected leadership in both chambers of the Oklahoma Legislature. State Rep. Kyle Hilbert of Bristow will serve as speaker of the Oklahoma House of Representatives while state Sen. Lonnie Paxton of Tuttle will serve as president pro tempore of the Senate.

As they prepare agendas for the 2025 legislative session, which starts in February, Republicans in both chambers must be prepared to tackle one of Oklahoma’s most pressing economic challenges – the state’s penalty on work.

State Sen. Bergstrom files bill to gradually eliminate state income tax

Bergstrom Files Bill to Gradually Eliminate Oklahoma Income Tax

OKLAHOMA CITY (Nov. 20th) – Sen. Micheal Bergstrom, R-Adair, has filed Senate Bill 1, a tax reform proposal designed to reduce Oklahoma’s income tax rates in a responsible and measured way.

Under SB1, the state’s marginal income tax rate will be reduced by 0.25 percentage points across all income brackets. Future reductions are tied to revenue growth, with the Board of Equalization tasked with determining if total state revenue has increased by at least $400 million compared to the fiscal year before the most recent tax cut. Each time this benchmark is met, another 0.25 percent reduction will be triggered, continuing until the top marginal income tax rate is zero.

Sen. Deevers applauds Trump’s reported consideration of federal income tax repeal

Deevers Comments on Trump’s Reported Consideration of Federal Income Tax Repeal

OKLAHOMA CITY — Sen. Dusty Deevers, R-Elgin, responded on Friday to Thursday’s New York Times report that former President Donald Trump is seriously considering supporting eliminating the federal income tax.

“In a time when government bloat, earmarks, and abuse of funds are out of control, and when the American people are suffering under crushing inflation and taxation, the repeal of the federal income tax would be among the most historic achievements in American history. Should he win in November, I encourage former President Trump to follow through on what he is reportedly considering.”

Sen. Deevers celebrates impending grocery tax cut, continues call for income tax cut

Deevers Applauds Impending Grocery Tax Cut, Calls for Legislature to Do More

OKLAHOMA CITY (August 19th) — With the State grocery tax set to be eliminated on August 29, Sen. Dusty Deevers, R-Elgin, celebrated the additional money going back into the hands of the people of Oklahoma.

“On the campaign trail, I promised Southwest Oklahomans I would work to get the government off our backs and out of our pocketbooks. Though I had hoped for even greater tax cuts and filed legislation to do so, I am very pleased that we were able to at least get rid of the 4.5 percent state grocery tax, which is set to be eliminated for all Oklahomans beginning on August 29. In addition to eliminating the State sales tax, the new law also prohibits cities and counties from raising local grocery tax rates until July 1, 2025. According to recent data, the new law will save the average family of four in Oklahoma roughly 60 dollars per month.”

Small: Budget plans includes worthwhile items

Budget plans includes worthwhile items

By Jonathan Small

The Oklahoma House of Representatives and Senate have both unveiled their state budget plans for the pending fiscal year. Each side has included goals that merit praise.

The House budget plan includes a quarter-point reduction in the state’s personal income tax, which would reduce our top rate from 4.75 percent to 4.5 percent. Because the personal income tax is a penalty on work and investment, the tax depresses economic growth. The lower the rate, the better the job creation and opportunity for all Oklahomans. While the best rate would be zero, any move in that direction is welcome.

House passes three income tax cut bills by Speaker McCall

The State Senate's GOP leadership is adamantly opposed to cutting the income tax this year, but House Speaker McCall is just as determined to put the ball in their court, with the House sending the following income tax cut bills to the Senate this week:

Speaker McCall Tax Bills Pass House

OKLAHOMA CITY (March 13th) – Speaker Charles McCall, R-Atoka, this week gained House passage of multiple bills he authored regarding Oklahoma's tax structure and policy. The bills were in addition to tax policy legislation passed by the House earlier this session.

"I made a promise to Oklahomans when the grocery tax passed earlier this session that the House was not done delivering tax relief to our citizens," McCall said. "This week, the House kept that promise. State savings are at record levels, our economic outlook as a state continues to rise and now is the time to allow Oklahomans to keep more of their hard-earned money. The House believes that principle, and that is reflected by the overwhelming number of votes these bills received."

AFP-OK applauds grocery sales tax cut, calls for income tax relief next

Americans for Prosperity - Oklahoma Praises Grocery Tax Cut, Calls for Income Tax Relief Next

OKLAHOMA CITY, OK (Feb. 27th) - Today, Americans for Prosperity - Oklahoma (AFP-OK) celebrates the elimination of Oklahoma's state grocery tax - a landmark achievement that will ease the burden on families across the state struggling to make ends meet under the record high inflation caused by the Biden administration. 

While the grocery tax cut will help residents all across the state, AFP-OK urges lawmakers to take up reforms that will work to grow the whole state's economy. With a governor who has said he will sign any tax cut that crosses his desk and a large majority of Oklahomans in support of eliminating the income tax altogether, there's no reason for the legislature to stop here. 

Small: income-tax cuts provide greatest benefit

Income-tax cuts provide greatest benefit

By Jonathan Small

Does the greatest benefit come from cutting the state’s penalty on work, the personal income tax, or from exempting groceries from the state sales tax? That question is on the minds of Oklahoma policymakers.

But the answer is straightforward. While exempting groceries from the state sales tax may provide some financial benefit to individuals, it does not make people more likely to invest in Oklahoma, create new jobs or raise wages.