Oklahoma Gov. Stitt pushes income tax cut amid revenue concerns

Oklahoma Governor Kevin Stitt is advocating for a 0.5% cut in the state's personal income tax despite fiscal challenges highlighted by the Board of Equalization, which reported the state is facing a $350 million shortfall. The state budget for Fiscal Year 2026 is set at approximately $12.4 billion, slightly higher than earlier estimates due to increased revenue from personal income and oil and gas taxes. However, state lawmakers and the Board of Equalization remain cautious, emphasizing that spending must be carefully managed given outstanding funding requests and the recent history of budget shortfalls. Stitt argues that the tax cut, estimated to cost $600 million annually, would stimulate economic activity by leaving more money in residents' pockets, although lawmakers are hesitant to use reserves to cover the cost. Some officials, like Senate Appropriations Chair Chuck Hall, stress the need for fiscal responsibility, pointing to the risks of further revenue cuts following the largest tax cut in state history. This debate highlights the tension between Stitt's push for tax cuts and the legislature's priority for maintaining financial stability.