Sen. Thatcher: Oregon’s tax trap


“The Tax Trap: More Burdens from the Inexperienced Majority”
By Oregon State Senator Kim Thatcher,

I’m sharing this update on Oregon’s 2025 Special Session, called by Governor Tina Kotek in July to tackle a funding shortfall at the Oregon Department of Transportation (ODOT). The goal was to keep our roads and infrastructure running without piling more costs on hardworking Oregonians. Sadly, we’re seeing the same old story: a push for new taxes and fees that hit families and businesses hardest, while dismissing practical solutions from those with real-world experience.

The regular session ended on June 27 without a solid transportation bill. This left ODOT facing layoffs and service cuts. On August 29, Governor Kotek launched the special session, focusing on House Bill 3991 and related measures that raise gas taxes, vehicle registration fees, titling fees, and double the payroll tax for transit districts. The House passed a version of the bill on September 1, sending it to the Senate. But things stalled quickly. First, Republican pushback challenged the rushed approach and lack of collaboration. Then, a key Democratic senator’s health issues led to a two-week delay announced on September 2. As of today, September 5, we’re in limbo, but the real problem persists. These proposals don’t solve issues. They burden Oregonians further.

The Heart of the Issue: Inexperience Driving Policy

Let’s cut to the chase. This session underscores a problem I’ve raised before: Oregon’s majority is crafting policies that impact our economy, businesses, and daily lives without the hands-on know-how needed for smart decisions. Democrats hold supermajorities in both chambers and chair every major committee, including the Joint Committee on Transportation. Yet, you can count on one hand the number of Democrats who’ve run a business or managed a payroll. They’re making multi-billion-dollar decisions affecting commerce and infrastructure. These decisions raise costs for trucking companies, inflate prices at the pump, and squeeze small businesses already battling inflation and red tape. Does it sound sensible to put folks with no business experience in charge of policies that shape our economy?

It’s like asking someone who’s never built a bridge to design one. Good intentions don’t replace proven expertise. Republicans, many of whom have built businesses, created jobs, and navigated real-world challenges, have proposed practical fixes: redirecting existing funds, streamlining ODOT’s operations, and avoiding tax hikes that burden Oregonians. These ideas are backed by thousands of Oregonians who’ve sent testimony opposing the bill, saying they can’t afford higher costs. But the majority brushes us off, favoring more spending and taxes over solutions that work. Senate Republican Leader Daniel Bonham stated: “Governor Kotek did not work with us to find common ground, and there’s nothing in her bill that reflects the concerns we’ve raised.”

This isn’t just about transportation. It’s a pattern. When committees are led by folks with little practical experience, we get policies that sound nice on paper but fail in reality. Businesses struggle, families pay more, and Oregon falls behind. We need leaders who value the input of those who’ve proven they can make smart, sustainable choices.

What’s more, this highlights a deeper issue of non-inclusion in our state government. Each state senator and representative is elected to serve roughly the same number of Oregonians, about 141,000 per Senate district, regardless of party affiliation. The Senate President is elected by the entire Senate body and should work for all Oregonians, not just advocacy groups, political allies, or one party. Yet, with the current supermajority, the voices of 12 Senate districts representing millions of Oregonians are often completely ignored. Our State Government structure was never designed for a party system where one group assumes total control and dismisses the others. What happened to the ideals of inclusion and diversity that are so often preached? Are we not all Oregonians? Where are the true leaders who respect every district, collaborate across the aisle, and draw on the expertise of all representatives? Instead, we see partisan politics leading to poor policies, with leaders prioritizing the wrong interests and showing hypocrisy in their calls for unity. Each district sends its best to Salem—experienced professionals ready to contribute—but this system skips those opportunities, disrespecting the voters who put them there.

Latest Developments: A Delay and Continued Pushback

This week, Senate Democrats postponed the vote on HB 3991 and HB 3992 until September 17 due to Sen. Chris Gorsek’s (D-Gresham) recovery from health complications. My thoughts are with Senator Gorsek and his family, and I wish him a speedy recovery. Governor Kotek has expressed similar sentiments and directed ODOT to push layoffs from September 15 to October 15, giving the Legislature more time.

But the delay doesn’t fix the bill’s flaws. Democrats need all 18 of their Senate members to pass this $4.3 billion tax package. No Senate Republicans support it, and only one House Republican voted yes. Leader Bonham stated: “Senate Republicans remain united in our opposition. There are no Republican votes for this bill. Until Senator Gorsek returns, we’ll be here advocating on behalf of the thousands of Oregonians who tell us they can’t afford another tax increase.” Democrats say the bill is needed for road maintenance and transit, but Republicans propose we can address the funding gap without new taxes by using existing resources wisely.

What You Can Do

This pause is your chance to make your voice heard. Contact Democrat Senators and tell them to reject these tax increases. Share how higher costs would affect your family or business. Together, we can demand policies that prioritize practical solutions and proven expertise over more of the same failed approaches.

If you don’t live in Senate District 11 and want to find your State Senator, Click Here

Stay engaged, and let’s keep fighting for an Oregon that works for all of us.

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