Measures 66 & 67: they’re back!

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Associated Oregon Industries (AOI)

On Tuesday, the House Democratic leadership formally unveiled their plan to raise $275 million in new tax revenue for the current state budget cycle. These tax hikes are permanent. The legislation will be contained in HB 2456.

The tax hikes proposed by the House Leadership are on the same Oregon businesses and taxpayers whose taxes were permanently increased by Measure 66 and 67. This will be the second time in 4 years that House Democratic leaders are targeting the same businesses and taxpayers with additional permanent taxes.

Measure 66 permanently increased taxes on businesses and taxpayers with $125,000 incomes for single filers or $250,000 for joint filers. Measure 66 raised their tax rate from 9% to 9.9%. Measure 66 has already increased taxes on these individuals and businesses by $375 million per biennium.

Now, House Leadership wants to raise taxes again on the same taxpayers by eliminating their itemized deductions, a tax increase of $169 million on top of the Measure 66 tax increases. The largest itemized deductions for these taxpayers are the mortgage interest deduction and deductions for charitable contributions.

House Leadership is also proposing to eliminate the personal exemption credit for the targeted Measure 66 taxpayers, a tax increase of another $38 million on top of the Measure 66 tax increases.

Measure 67 raised corporate taxes by implementing a new corporate minimum tax on unprofitable businesses. For Oregon companies with gross sales of $100 million or more, the new Measure 67 minimum tax is $100,000 for these companies whether they are profitable or not. Measure 67 raised taxes by $230 million on Oregon businesses.

House Leaders are now proposing a straight gross receipts tax on these companies. Under their proposal, a new gross receipts tax of 0.1% of gross sales would apply to these large companies. This is an additional $50 million dollar tax increase on top of the Measure 67 tax increases.

AOI has grave concerns about the tax proposal, including:

1.       The 2009 Oregon Legislature already raised taxes on these same taxpayers and businesses by $600 million (2013-15 projections), now they are proposing that these same taxpayers pay an additional $275 million.

2.       There is already $1.5 billion more in tax revenue this budget cycle than in the last, an increase of more than 10% – there is no compelling reason to raise even more revenue.

3.       If the legislature wants to find more resources to fund school budgets and other critical services, it may do so by passing comprehensive PERS reform (SB 754) and free up over $1 billion in new resources. It is unreasonable to ask Oregonians to pay more taxes simply to pay for out-sized PERS benefits.

4.       If the legislature wants to find more resources to fund school budgets and other critical services, it may also do so by focusing on policies that will grow Oregon’s economy and create jobs for more Oregonians, creating more taxpayers and increasing long term tax revenues.

Now is the time to call your state representative to express your concerns about this tax measure.

If you don’t know your state representative, you can find them here.

You can find a summary of the new tax legislation here.

You may also direct your comments to the House Revenue Committee, where House Bill 2456 is being drafted.

Representative Phil Barnhart, Chair
[email protected]

Representative Vicki Berger
[email protected]

Representative Tobias Read
[email protected]

Representative Cliff Bentz
[email protected]

Representative Jules Bailey
[email protected]

Representative Jason Conger
[email protected]

Representative Sara Gelser
[email protected]

Representative John Davis
[email protected]

Representative Jessica Vega Pederson
[email protected]

 

EDITOR’S NOTE: KATU (AP) also covered this on Tuesday, and their coverage includes this quote from Rep. Peter Buckley (D-Ashland) “I think 66 and 67 were shown to be popular with the voters.” Rep. Buckley then goes on to try to mislead Oregonians that “We’re asking Oregon corporations to pay a bit more to help fund education,” instead of admitting that he and his public employee union-owned caucus are looking to raise taxes again on Oregon’s high income earners and on Oregon’s employers to pay for past PERS excesses

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Posted by at 09:30 | Posted in OR 77th Legislative Session, Oregon House, State Taxes | 10 Comments |Email This Post Email This Post |Print This Post Print This Post
  • A dissing patch from T. Partee

    The estate or meta-stastate of Oregon ‘s megaLastingmanure, indeed, ‘peers exemplary of being a taxing/spending fox in the commoner sense hen house bearing voracious syndromics meandering a lout with an alarming, albeit severe PERSanality a’bong wit’ a voracious appetite for foraging at sum Last Chance Resort, aka, OPM (Other People’s Money).

    D’oh balling about it, That’s the unimpeachable truth, folks – yeah, dammit!

    Bottom line with tongue in chic or sum ‘scat’ word: Repeat the tax payers chant of Susan Powters well intoned “Stop the Insanity” – or, in simpler terms, beach or distribute the illegitumnus CONundrumae conglomeratae’ along the skinned shores o sores of Greece or Cypres. Selah, blokes!

    • Lulz

      …in simpler terms.

      That’s some mighty powerful irony on your part.

      • A dissing patch from T. Par

        Yeah, a flat iron steak into what’s left of US’s swilly impartment for BBQ on OC. .

        Selah.

    • JacklordGod

      It must be great to speak a foreign language.

      • A dissing patch from T. Par

        Jack, I’m on your side, yet when the Dem’d down resort to their form of blither babble, I feel compelled to respond in kind to their communicative shills. In other words, what’s left of US really sucks and their nipples deserve a pinching countering to the flow d’oh they so bitcingly deserve. Period!

  • Bob Clark

    At the same time as this new tax grab, the legislature is entertaining thoughts of spending millions of dollars on electric recharging stations and subsidizing the cost of the electricity at 100%. Hopefully, the GOP stands together (at least for something) and requires the Dems to refer these tax grabbing measures to the voters (and it won’t help this biennium since the vote can’t take place until November 2014).
    Besides this, if Nike gets tax rate/structure stability (and they are excluded from a bump in the gross tax per last December’s deal) then every other economic entity down to the individual should also get tax rate/structure stability. What’s fair for one is fair for all.

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