Oklahoma Governor Signs Income Tax Cut Bill into Law

Published 04/29 2014 06:01PM

Updated 04/29 2014 08:32PM

MIAMI, OK.--- Governor Mary Fallin has signed a bill that is receiving a mixed response in Miami. It's to decrease income taxes for residents in Oklahoma. The decrease is less than one percent but that one percent might affect residents in more ways than one.

"You know, I think everyone's initial reaction to a tax cut is 'yay," said Michele Bolton, Executive Director of Miami Chamber. 

The tax rate at 5.25% will be reduced to 4.85% by 2018, if state revenue increases enough to cover the cost.

"When cutting the income tax is putting more money into the economy, whether it's through business or through individuals, there is more money to spend. More money for businesses to expand," said Bolton. 

The decrease will affect those who are in Oklahoma's top income tax bracket. Meaning individuals who make more than $8,700 a year or couples who make more than $15,000 a year.

"It's better because it gives the government and the tax people less money to play with. Because we need all the money we can get, the world is getting rough," said Michael McKeown, Miami Resident. 

Representatives of the Miami Chamber of Commerce feel this will take money from education. 

"I think it will make a major impact on the other side of the budget that they have to make up the hole that it's going to leave, that deficit," said Bolton. 

Since the last tax cut in 2007, Miami public schools are receiving $100 less per student to educate. The governor feels this decrease will be good for the economy. The average tax cut this time is at 4.85% which comes out to $158 per year. 

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