OKLAHOMA CITY (AP) — Oklahoma Gov. Mary Fallin is laying out more details of her plan to cut the personal income tax for all Oklahomans and streamline the state's tax code.
In her State of the State address on Monday to kick off the 2012 legislative session, Fallin proposed deep cuts to the income tax that would take effect on Jan. 1, 2013. Her plan would cost the state hundreds of millions of dollars in revenue each year, and it's not clear exactly how Fallin would offset the lost revenue.
She says she plans to pay for the tax cut by eliminating "tax loopholes, carve-outs and other exceptions," but the governor's office has not released details on which exemptions would be eliminated. Under Fallin's plan, those earning $30,000 or less would pay no taxes.
In the State of the State address Fallin also proposed her 2013 state budget. The budget is flat for most state agencies. Fallin also asked lawmakers to support a bond issue that would pay for improvements to the Capitol
building. Fallin called the current state of the Capitol embarrassing.
The governor also detailed her plan to fix all 706 of the state bridges but 2019.
The plan includes re-diverting money from the general fund and re-using steel beams from the I-40 Crosstown bridge in Oklahoma City to build 300 new bridges.
Governor Fallin also signed an executive order banning tobacco use on all state property.
The Speaker of the House released this reaction to the Governor's address:
“Governor Fallin laid out the type of aggressive vision we need to take this state from good to great. The picture the governor painted of our state is true: We’re growing, and we’re on the cusp of something great. With 41,600 new jobs in the past year, low unemployment and a growing economy, Oklahoma is positioned well to grow and prosper in the years ahead. The pro-growth state we promised our constituents is starting to take shape, which is proof that what we’re doing is working. Under this governor’s leadership, the state has unprecedented momentum that we’re all looking forward to seizing and building upon this session.
The governor’s income tax reduction plan appears bold, strategic and responsible all at once. That’s exciting, and we’re excited to begin reviewing it. Over the next four months, the governor’s tax plan will be front and center before the Legislature along with other tax reform plans put forth by legislators. All income tax plans will get careful consideration as we determine the best way to achieve a growth-spurring, responsible tax reduction. I commend the governor and my colleagues in the Legislature for their commitment to the meaningful tax reform Oklahomans have asked for and deserve.
It’s a fantastic sign for public safety to see funding for smart on crime initiatives in the governor’s proposed budget. The governor has been a champion for public safety and she knows, as many of us now know, how critical these services are to public safety and to improving our criminal justice system. This funding dovetails extremely well with the statewide public safety plan we developed through the Justice Reinvestment Initiative, as does the governor’s call for a new trooper academy. All these initiatives would be tremendous boosts to law enforcement and we will make them a priority.
The governor’s commitment to transportation, education, government modernization, DHS reform, water, public health and energy are priorities also shared by the House, so we look forward to working with her in these policy areas, as well.”
