Oklahoma 2022 Regular Session

Oklahoma House Bill HB2962

Introduced
4/28/21  
Refer
4/29/21  
Report Pass
5/17/21  
Engrossed
5/18/21  
Enrolled
5/20/21  

Caption

Revenue and taxation; individual income tax rates; earned income tax credit; computation of credit; effective date.

Impact

The modifications proposed in HB 2962 are intended to create a more equitable taxation system that benefits lower-income residents of Oklahoma. By lowering tax rates for individuals and enhancing the refundability of the earned income tax credit, the bill aims to increase disposable income for those most in need, thus fostering economic growth within the state. The bill's adjustments could lead to increased disposable income for thousands of families by investing tax dollars back into the community rather than sending them to the state treasury.

Summary

House Bill 2962 is a legislative measure that modifies the individual income tax rates and the structure of the earned income tax credit in Oklahoma. Specifically, the bill adjusts the tax rates applicable to both single and married individuals, introducing a tiered system that reduces the tax burden for lower-income brackets while also altering the maximum allowable earned income tax credit. This change is designed to provide more relief to eligible taxpayers, particularly those in lower income brackets, promoting financial stability among working families.

Sentiment

The sentiment surrounding HB 2962 appears to be predominantly positive, especially among proponents who view the tax reductions as a necessary measure to alleviate financial strains experienced by lower-income households. Supporters argue that these changes will help stimulate economic activity and improve the quality of life for many Oklahomans. Conversely, some critics express concern that broad tax reductions could potentially reduce necessary funding for important state programs. However, the general atmosphere towards the bill reflects a recognition of the need for tax reform in response to recent economic challenges.

Contention

Notable points of contention among lawmakers include the impact of these tax adjustments on the state budget and the potential long-term consequences of reducing revenue through tax cuts. Opponents worry that while the immediate relief may appear beneficial, it could lead to significant funding shortfalls for essential services in the future. Furthermore, discussions around the efficacy of the earned income tax credit as a tool for economic support have raised questions about its implementation and the actual benefit to families. The balance between fostering economic growth and ensuring adequate funding for state services presents a challenging debate as the bill progresses through the legislative process.

Companion Bills

No companion bills found.

Previously Filed As

OK HB2041

Revenue and taxation; providing income tax credit for individuals; prescribing method for computation of tax credit; computation of taxable income; effective date.

OK HB2229

Revenue and taxation; income tax; earned income tax credit; effective date.

OK HB1639

Revenue and taxation; earned income tax credit; effective date.

OK HB2769

Revenue and taxation; earned income tax credit; effective date.

OK HB2769

Revenue and taxation; earned income tax credit; effective date.

OK HB3526

Revenue and taxation; earned income tax credit; effective date.

OK HB1009

Revenue and taxation; income tax; individuals; rates; effective date.

OK HB2429

Revenue and taxation; earned income tax credits; refundability; effective date.

OK HB1008

Revenue and taxation; income tax; individuals; rates; effective date.

OK HB1001

Revenue and taxation; individual income tax; rate reductions; revenue computations; further rate reductions; effective date.

Similar Bills

OK HB2764

Revenue and taxation; duties of the State Board of Equalization; certification of revenue amounts; income tax rate reduction; effective date.

OK SB794

Oklahoma Employment Security Commission; deleting gender references; making e-file preference for filing; benefit eligibility; overpayments. Effective date.

OK SB1500

Income tax; excluding certain compensation to certain nonresidents. Effective date.

OK HB1953

Revenue and taxation; income tax; income tax rates; effective date.

OK HB1953

Revenue and taxation; income tax; income tax rates; effective date.

OK SB102

Income tax; excluding certain compensation to certain nonresidents. Effective date.

OK SB529

Teachers; creating the Oklahoma Teacher Corps Program; providing eligibility. Effective date. Emergency.

OK SB529

Teachers; creating the Oklahoma Teacher Corps Program; providing eligibility. Effective date. Emergency.