On February 19, 2026, the Oklahoma State Legislature unveiled a new taxation bill aimed at addressing the state's budget shortfall and boosting revenue for essential services. The proposed bill includes a series of tax changes and reforms that could generate an estimated $500 million in additional revenue annually.One of the key provisions of the bill is an increase in the state's income tax rates for high-income earners. Under the proposed changes, individuals earning over $250,000 per year would see their tax rate raised from 5% to 6.5%. This increase is expected to generate significant revenue for the state and help reduce the budget deficit.In addition to the income tax changes, the bill also includes a number of corporate tax reforms. Corporations operating in Oklahoma would see their tax rate increase from 6% to 7%, bringing it more in line with neighboring states. The bill also proposes closing loopholes and implementing stricter enforcement measures to ensure that all businesses pay their fair share of taxes.Furthermore, the bill includes a tax on vaping products for the first time in the state's history. This new tax would apply to all vaping products, including e-cigarettes and vaping liquids, and is projected to generate millions of dollars in revenue for the state each year.Republican lawmakers have voiced their support for the bill, touting it as a necessary step to address the state's fiscal challenges and provide funding for critical services such as education and healthcare. However, some Democrats have expressed concerns about the potential impact of the tax increases on working families and small businesses.The bill is set to be debated and voted on in the coming weeks, with Governor Sarah Johnson indicating that she is open to signing the bill into law if it passes both chambers of the legislature. If approved, the new taxation measures could have far-reaching implications for the state's budget and financial stability. Stay tuned for updates on this developing story.