Oregon Tax Burden up $1,041 per person

The Taxpayer Association of Oregon announces:
TAX DAY PAIN:
Oregon tax burden grows 8%, up $1,041 per person
$520 per person for one year of State’s two year budget cycle

Based up on the two year state budget cycle the tax burden on Oregon citizens will grow 8%, or an average of $1,041 per person and $4,164 per family of four. The one year increase is $520/person. The state budget was approved by the 2007 Legislature. The 2007-2009 budget increased by over 20% from the previous 2-year budget, and included over $850 million in tax and fee increases.

Jason Williams of the Taxpayer Association of Oregon commented, “Taxpayers feel the squeeze from both the economy and tax increases. The cost of government is breaking the family budget. An 8% tax burden growth is unsustainable to taxpayers and the economy.”

— Numbers provided by the help of budget expert State Representative Kevin Cameron and raw data provided by the Legislative Fiscal Office

More taxes on the way!

State Wide Tax Proposals

Gas Tax: Governor Kulongoski’s Oregon Transportation Commission is drafting plans for a statewide gas tax increase to be introduced in the 2009 Legislature (Kulongoski, summit leaders call for gas tax, Portland Business Journal, 12/3/07)

Tobacco Tax: Governor Kulongoski announced in his State of the State address plans to increase the Tobacco tax despite voters rejecting the tax back in November by 60%. (State of the State 3/21/08)

Statewide Property Tax Increase: Governor Kulongoski’s Federal Forest and County Services Taskforce is considering a proposal to for a statewide property tax increase. (See “Senator Ted Ferrioli resigns from Governor’s county payments task force” OregonCatalyst.com, 3/27/08).

National Taxes

Alternative Minimum Tax expansion: Close to 200,000 new Oregonians could be hit with the Alternative Minimum Tax for the first time unless Congress acts to cut the AMT. Action must be taken this year to avoid the new tax.

Bush Tax Cuts expiration: The March Congressional draft budget does not renew the Bush Tax Cuts for 2010. If the Bush Tax Cuts are not renewed (made permanent) this is what will happen”¦

– A single mom with kids making $30,000 in earnings will see her taxes rise by 67% (about $1,600). Parents will lose their Child Care Tax Credit.
– Seniors with $40,000 in income will see their taxes rise 155% (about $100).
– Many small business taxes will rise 17% percent ($4,000 on average).

( In 2011, the small business expensing limit will shrink from $134,000 (indexed) to just $25,000, increasing the cost of capital investments for America’s small businesses. The top tax rate on dividends will increase from 15 to 39.6 percent, while the top tax rate on capital gains will climb from 15 to 20 percent, raising the tax burden on retirees and families investing for their future. Low-income families with one or two children will no longer be eligible for the refundable child tax credit and the tax rate relief, the new 10-percent tax bracket, estate tax repeal, marriage penalty relief, and all the remaining tax relief enacted over the past few years will sunset, resulting in tax increases for every taxpayer who pays income taxes.)

Five Portland-area taxes under consideration
– $900 Million Portland Public School construction bond, (The Oregonian 1-18-08)
– $420 Portland Street Tax (expected to be referred to November ballot)
– $144 Million Portland Community College bond, (The Oregonian 1-18-08)
– $29 Million Multnomah County Public Safety Levy (under current negotiations)
– $14 Million Child Investment Bond renewal (Measure 26-94)