Senate Lawmakers Say Oklahoma Can’t Afford Both Grocery Tax Cut And Income Tax Cut

The effort to cut the tax on groceries gained steam at the Capitol. Senate leadership introduced a bill to get it down.

It's popular on both sides of the aisle and already passed in the state house. However, Senate lawmakers cautioned against making cuts to both state grocery taxes and state income taxes. 

This week Senate Pro Tem Greg Treat, R-Oklahoma City, introduced a bill to cut the state’s grocery tax. “Oklahoma families are paying more than ever,” said Sen. Pro Tem Greg Treat, R-Oklahoma City. “I think it’s time that we eliminate that and eliminate that for good.” 

A recent national inflation report shows food prices are 25% higher than in January 2020. Senate Democrats like Sen. Julia Kirt echo the same desire to cut the state’s grocery tax. “I had a similar bill a couple of years ago,” Kirt said. “If we’re gonna cut taxes I think we should cut the thing that families see the most.” 

This proposed tax cut would only impact the state grocery tax. City and municipal governments would still have the choice to charge their own taxes to pay for things like fire departments. “Our cities are relying on those sales tax dollars,” Kirt said. 

Gov. Kevin Stitt has voiced support for a personal income tax cut. However, Treat said Oklahoma can’t afford to cut both. “I don’t anticipate it being at a number where you could afford the full-year cost of an elimination of a quarter point on the personal income tax,” Treat said. 

Kirt said cutting grocery tax alone would cut tax revenue by about $400 million. “That’s a big cut,” Kirt said. 

However, Kirt said the leadership in her chamber is working together and working to let people know exactly where their money is going. “Senate leadership has pushed for bipartisan budget talks,” Kirt said. “Finally, we’re doing it more transparently. It’s about the priorities of the people.” 

Kirt said in the middle class, people would not see a big difference in their taxes from a state income tax cut.