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Governor urges half-point state income tax cut, frames it as priority given state's savings
Summary
The governor told reporters he supports cutting state income tax by half a percentage point, saying the state has a multibillion-dollar savings account and that tax cuts will spur economic activity; he contrasted state fiscal policy with federal spending concerns.
Asked about state income tax cuts and concerns that other program cuts could follow, the governor said he supports an immediate half-point cut in the state income tax, which he estimated would amount to about $240 million in the annual budget (an annualized figure he suggested could be viewed as $600 million). He argued the state has sufficient reserves — he cited a "$5,000,000,000 savings account" — and said tax cuts would return money to residents and stimulate local spending.
"We need to cut the taxes by half a point today, and then we'll figure out how much we can spend," the governor said, adding that previous tax reductions and a strong economy under his administration left the state well positioned for another cut. He emphasized fiscal restraint at the federal level as well, describing concern about national deficits and interest costs.
Nut graf: the governor framed tax cuts as a matter of priorities — save and then cut — and criticized federal spending growth, tying national fiscal policy into his rationale for state-level tax reductions.
Details: the governor claimed the proposed half-point reduction would equal about $240 million from the budget, and he suggested annualized figures sometimes cited by others (for example, $600 million) are a static view that doesn't account for economic feedback. He did not provide detailed fiscal analysis or cite a specific bill number, and he did not state whether he had requested legislative action to enact such a cut.
Ending: the governor reiterated his desire to keep Oklahoma competitive with other states that have lower income taxes and said he would oppose bills that "grow government." He did not provide a legislative timetable or specify which revenues would fund existing commitments if the cut moved forward.
