Maynard Passes Bills Removing Marriage Penalty, Corporate Throwback Rules
OKLAHOMA CITY – Rep. Cody Maynard, R-Durant, advanced two bills in the Oklahoma House of Representatives. On Monday, Maynard passed House Bill 2697, which would remove the marriage penalty in the Oklahoma tax code. HB2697 is a provision in Oklahoma's current tax code that penalizes married couples in certain circumstances. These marriage penalties occur when the tax liability for a married couple filing jointly is higher than the combined tax liability of two individuals filing separately. "It is common sense: marriage should not penalize any taxpayer," Maynard said. "I am running this bill to ensure Oklahoma's tax code supports families and pro-family policies." Oklahoma is one of only 15 states with a marriage penalty in the tax code. It would change the 3.75% tax bracket from $2,400 to $4,600 so that two individuals filing taxes separately would pay the same amount as a married couple reporting the same total combined income. HB2697 passed the House 93-0. House Bill 1645, approved Monday, would repeal the corporate "throwback rule" in Oklahoma's tax code. The "throwback rule" punishes businesses that sell out of state, encouraging them to relocate their headquarters or distribution facilities to other states. Over time, tax avoidance strategies eliminate most or all revenue gains from throwback rules. "Throwback rules are often uncompetitive and ultimately counterproductive," Maynard said. "Eliminating this rule will strengthen Oklahoma's economy and prevent avoidance and restructuring issues in the future." Oklahoma is one of 21 states with a throwback rule. HB1645 passed the House 87-5. Both pieces of legislation now move to the Senate to await committee assignments.