OKLAHOMA CITY – The Oklahoma chapter of the free-market grassroots group Americans for Prosperity (AFP-Oklahoma) today urged Governor Brad Henry to sign the bipartisan tax relief package sent to his desk by the Oklahoma Senate. The citizen group also warned the Governor against holding tax cuts hostage during budget negotiations.

“The tax cuts contained in this bill represent meaningful tax relief for Oklahoma’s hard-working families as well as small business owners,” said AFP-Oklahoma Director Stuart Jolly. “Our grassroots activists will not take kindly to this tax relief being held hostage by the Governor to use as a bargaining chip during budget negotiations.”

The tax relief package would accelerate a reduction of the state’s top marginal income tax rate passed last year, bringing the rate from its current 5.65 percent down to 5.25 percent one year earlier than planned. The tax cut legislation would also eliminate the state’s franchise tax for most small businesses, provide a statewide three-day “back to school” sales tax holiday, and create a tax credit for stay-at-home parents similar to the credit offered to parents with children in daycare.

“It is vital that taxpayers are not left out of the state’s budget priorities this year. Governor Henry can make sure that doesn’t happen by signing this very good tax relief package,” said Jolly. “Governor Henry has indicated this measure should be considered within the framework of ongoing budget negotiations. If that means he plans to gut this tax relief or leverage it for wasteful spending, we intend to fight back. I urge Governor Henry to do what is good for Oklahomans and sign this bill immediately.”

Jolly noted that Governor Henry created the budget deadlock in the first place by vetoing the budget, which passed by bipartisan majorities in both the House and the Senate. Claiming that tax relief needs to be stalled because the budget has not yet been finalized is disingenuous on the part of the Governor.

 “Returning hard-earned tax dollars to citizens in the form of tax relief should always be a priority for our elected officials,” Jolly concluded. “We’ll be watching Governor Henry to see whether taxpayers’ interests take precedence over special interests.”