Oklahoma’s Sen. Patrick Anderson has filed Senate Bill 240 to replace Oklahoma’s current income tax structure with a flat tax of 2.95%.
Anderson asserts flat tax plan is simple, fair, and revenue neutral. Additionally, the plan would result in Oklahoma having the lowest income tax rate in the nation, among the 43 states that do impose an income tax.
SB 240 would eliminate all current income tax deductions, credits, and exemptions. Under the proposal, the state income tax rate would be cut nearly in half, and yet there would be no loss of revenue to state government. The Oklahoma Tax Commission has reviewed the numbers and determined that a flat rate of 2.95%, as Anderson has proposed, would be revenue neutral.