Oklahoma Lawmakers Propose Ending State Income Tax

A group of rookie Oklahoma state senators introduced a bill to phase-out its personal income tax over the next 10 years and cut it by more than half in 2013, The Oklahoman reports.

The proposal is being touted as a way to improve the state's economy. There are nine states that currently lack a personal income tax. 

The lawmakers' plan calls for the tax cut to be funded by reduced spending along with the elimination of personal tax credits, exemptions and deductions. Sponsors say they won't have to cut core service or increase other types of tax rates to compensate for the change. 

The Oklahoman reports that Gov. Mary Fallin has endorsed the idea of eliminating the personal income tax. The state faces a $100 million shortfall in the upcoming fiscal year, the newspaper reports, and personal income taxes generate nearly a third of the revenue that state lawmakers appropriate.