Oklahoma – Oklahoma Governor Kevin Stitt, alongside Senate President Pro Tempore Lonnie Paxton and House Speaker Kyle Hilbert, has unveiled a sweeping agreement aimed at cutting taxes, investing in major infrastructure projects, and enacting reforms to bolster the state’s pro-business climate.
At the heart of the plan is a quarter-point reduction in the state income tax, along with a consolidation of tax brackets and a structured path toward eliminating the income tax entirely. The goal, leaders say, is to ensure Oklahoma remains competitive with neighboring states that have already embraced low- or zero-tax models.
“Our agreement shows the kind of leadership that Oklahomans expect—fiscally responsible, conservative governance,” said Governor Stitt. “We’re delivering a tax cut for every Oklahoman, investing in critical infrastructure, public safety and education, and making smart, one-time investments that will strengthen Oklahoma for the long haul.”
Stitt noted that under his administration, the state has cut over a billion dollars in taxes, built up over \$5 billion in reserves, and continued efforts to limit government expansion.
In addition to the income tax changes, the agreement sets aside funding for key infrastructure projects. Among the highlights are a new state-of-the-art veterinary hospital at Oklahoma State University in Stillwater and a world-class pediatric heart hospital at the University of Oklahoma in Oklahoma City. Lawmakers also agreed to support vital infrastructure upgrades throughout the state.
“This is a fiscally conservative budget that takes care of all of Oklahoma, investing in critical needs throughout the state while preserving ample surplus for future years,” said Speaker Hilbert, R-Bristow.
Beyond the budget and tax reforms, the agreement includes several pro-business policy initiatives:
-Behind the Meter: This measure will allow large-scale manufacturers and data centers to build their own power generation facilities, increasing energy independence and efficiency.
-Business Courts: A new court system will be created to handle complex business disputes, aiming to provide more expertise and faster resolution of commercial legal matters.
-Tort Reform: Proposals will protect rural doctors and small business owners from excessive economic damage claims and reduce frivolous lawsuits.
-Utility Expense Recovery: Utilities will be enabled to recoup costs associated with new energy generation, promoting a more reliable and affordable grid.
With the legislative session approaching its final weeks, the agreement represents a significant step toward finalizing Oklahoma’s fiscal policy for the coming year. Leaders expressed optimism that the plan will secure swift approval, ensuring tax relief and critical investments reach Oklahomans as soon as possible.
