Tax Cut Plans Deadlocked

Oklahoma Gov. Mary Fallin said last week she would not call a special legislative session to resolve a dispute between House and Senate leaders over cuts in the top income tax rate.

"In the past few days, it has become clear to me that the House and the Senate were not able to come to an agreement on a tax reduction plan," Fallin said at a news conference on Thursday. "They're deadlocked."

The top rate will remain at 5.25%.

Fallin and Republican legislative leaders had agreed on a cut to 4.8% in 2013 and 4.5% in 2015.

However, GOP House members balked because some taxpayers would see their liabilities go up, not down, because of changes in tax credits and exemptions in the plan.

The Senate adopted Fallin's plan, but House Republicans later proposed bringing the top rate to 4.5% over three to 10 years beginning in 2014, depending on annual revenue growth.

"If a special session was called, it appears unlikely that a deal would emerge between the House and Senate," Fallin said.

The 2012 session ended Friday.

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