MuskogeePolitico: Fallin/Step Up income tax hike is higher than we’re being told

***TAXPAYER ALERT***
The Legislature is moving to hear HB1037XX, the Step Up/Fallin income tax hike, in the Joint Committee on Appropriations & Budget (JCAB) in both the House and Senate today. Running the figures IN THE BILL, a married couple filing jointly, with two children, earning $60k per year and taking the standard deduction would pay $187.65 in new income taxes.
Step Up Oklahoma says they would pay "$85 to $97" more, but that is absolutely NOT the case when the actual bill language is examined.
  • 2017 State Income Tax under this scenario is $1810
  • Under the Fallin/Step Up bill, the tax is $1997.65
  • This is an increase of $187.65, 193.45% higher than the Step Up estimate
 
DETAILS
Scenario: married couple filing jointly, 2 children, taking the standard deduction, earning $60,000 per year.
2017 - current tax code $12700 standard deduction, $1000 per individual exemption (x4) = $43300 AGI Married-filing-jointly tax brackets: 0.5% on first $2000 = $10 1% on next $3000 = $30 2% on next $2500 = $50 3% on next $2300 = $69 4% on next $2400 =$ 96 5% on everything above ($31100) = $1555 2017 STATE INCOME TAX = $1810 2018 - new proposed income tax code $10500 standard deduction, no personal exemptions = $49500 AGI New married-filing-jointly tax brackets: 0.5% on $0-1999 = $10 1% on $2000-4999 = $29.99 2% on $5000-7499 = $49.98 3% on $7500-9799 = $68.97 4% on $9800-12199 = $95.96 4.6% on $12200-35999 = $1094.75 4.8% on $36000-99999 = 648 5% on $100000+ = $0 2018 STATE INCOME TAX = $1997.65  $187.65 more in state income tax than current code
Other scenarios
 
  • Married couple filing jointly, 2 kids, standard deduction, earning $40k: $176.75 more in taxes (Step Up said $40 to $48 more)
  • Married couple filing jointly, 2 kids, standard deduction, earning $80k: $147.70 more in taxes (Step Up said $85 to $97 more)
Sources for information: HB1037XX 2017 State Income Tax tables Step Up Oklahoma tax bracket projections Source post