Tax relief proposal for 2024 falls short in legislature
This article was written with the assistance of ai software*
What did SB1298 want to accomplish?
SB1298 wanted to change how income tax works in Oklahoma.
Starting from January 1, 2024, the highest income tax rate would have dropped from 5.25% to 4.50%. This means people who earn a lot of money would pay a smaller percentage in taxes.
The bill also wanted to increase the standard deduction, which is the amount of income that isn’t taxed. This change would begin to apply starting with the 2024 tax year.
Who would have benefited from this law?
✔️Individual Taxpayers: People will pay less in income tax because the highest tax rate drops from 5.25% to 4.50%. Plus, the higher standard deduction means more of their income won’t be taxed.
✔️People with High Incomes: Those who earn more will especially benefit from the reduced top tax rate, saving them money on their taxes.
✔️Taxpayers Claiming the Standard Deduction: Individuals who use the standard deduction on their tax returns will benefit from the increased deduction amount, which can lower their taxable income and reduce their tax bill.