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Oregon Democrats' tax plan takes shape

Apr 8, 2013 | 1 Comment


By JONATHAN J. COOPER
Of the Associated Press

SALEM — Democratic leaders in the Oregon House said Monday that their plan to raise more tax revenue would target corporations and wealthy individuals.

Speaker Tina Kotek and Rep. Peter Buckley, the House Democrats’ budget chief, said their plan would limit the amount an individual can claim in tax deductions on a graduated scale beginning with individuals earning at least $125,000 and households earning more than $250,000. Those same taxpayers also would be eligible for a smaller share of the personal exemption — a $183 tax credit for every individual on a tax return.

The Democratic plan would eliminate the cap on the corporate minimum tax, which would affect corporations with more than $100 million in revenue. It also would try to collect more from multi-state and multi-national corporations by trying to keep better tabs on how much of their revenue comes from Oregon and should be subject to state taxes here.

The House Revenue Committee is scheduled to begin discussing the proposal Tuesday and will work out the details, including how much to limit tax deductions for wealthy taxpayers.

Democratic leaders have proposed raising $275 million in additional revenue over the next two years to help balance the state budget. They'll need at least two Republican votes in the House and Senate to reach the three-fifths majority required to raise taxes.

“If people don't like these four elements, they need to figure out how to help us get to $275 million,” Kotek said. “That is the critical piece that we're now moving to.”

GOP leaders say they'll only support a tax increase if Democrats back steeper pension cuts for public employees. A Democrat-backed pension-cutting plan, which would save $460 million for state and local governments over the next two years, is scheduled for a vote in the Senate on Thursday. Republicans are backing a separate proposal that they say would save more than $1 billion.

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Comments

08:19 am - Thu, April 11 2013
Don Dix said:
What a bunch of B.S. legislators.

Too afraid of the unions and their influence, the Demos will only consider raising taxes and worry about the deferred PERS payments next time (hoping the fund heals itself) -- just like last session.

What happened to all the campaign promises listing PERS reform as a priority? Reform should not come as an increase in taxes. We were told M66 & M67 would 'fix everything', put Oregon on the track to recovery. Now the money is spent and they want more. And if one has been paying attention, the new revenue will end up in the accounts of the union members, just as always.

The union wiggles the strings and the marionettes (Demos) dance to the tune. It makes one wonder what else the wussies might do for money?????







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