State Representative Jay Steagall, a Republican from Yukon, is pushing forward with his agenda to see an end to Oklahoma's personal and corporate income taxes by the year 2035. With House Bill 1009 now tabled, Steagall aims for an incremental decline in taxes over a span of a decade, a move that resonates with his constituents. The proposed legislation would lower personal income tax rates by 0.00475% and corporate rates by 0.004% per annum, according to the Oklahoma House of Representatives official statement.
The persistent legislator is no stranger to this undertaking, having introduced a nearly identical bill, House Bill 3058, during the 2024 legislative session. This proposal comes amidst what Steagall describes as "overwhelmingly support" from Oklahomans looking to rid themselves of the state income tax, a stance outlined in a statement published by the Oklahoma House of Representatives. He argues that the tax is a flagrant challenge to the state constitution, which grants individuals the right to enjoy the fruits of their labor without undue encroachment.
Highlighting a particular section of the Oklahoma Constitution, Rep. Steagall cites Article 2, Section 2 which affirms that "all persons have the inherent right to life, liberty, the pursuit of happiness, and the enjoyment of the gains of their own industry." By his account, income taxes impede on these protected liberties and thus, according to him, should be phased out in accordance with the state’s foundational principles as he explained in the Oklahoma House of Representatives official announcement.
The origin of state income tax in Oklahoma dates back to 1915, and Steagall notes that the phased approach towards its elimination would afford time for legislators to enact a comprehensive tax reform. In the Oklahoma House of Representatives' official press release, he emphasized the urgency of this "much-needed" tax reform, suggesting that it would pave the way for economic liberty in alignment with constitutional tenets.
