Lawmakers quietly float tax hike to fix budget

By Taxpayers Association of Oregon
OregonWatchdog.com

Oregon State Senator Kate Lieber (D-Beaverton) and Oregon State Representative Tawna Sanchez (D-Portland) just wrote a guest Editorial opinion in the Sunday Oregonian.

Listen closely to what they said;

“As co-chairs of the Joint Committee on Ways and Means, we and our colleagues are now grappling with how to rebalance the state’s budget … Conversations about spurring economic growth and closing tax loopholes are ongoing across government, and the outcome of those talks will have a dramatic impact on our ability to provide state services in the coming years.”

Closing tax loopholes?

The liberal lawmakers have already run the numbers on disconnecting Oregon tax law from the big Trump business tax cuts.  The Oregon Center for Public Policy just days ago called this tax break as “Loopholes for Corporations.” (November 19, 2025).   The fix is in!   Both the liberal lobby and liberal lawmakers are calling tax cuts for small businesses a “loophole”.

As we have discussed many times, Oregon tax law is connected to Federal tax law in many ways (as in definitions, exemptions), so when Congress redefines business taxes, it automatically changes for Oregon.   The President and Congress’s Big Beautiful Bill reduced business taxes through (1) Bonus Depreciation and Expensing (2) R&E expenditures and (3) Business Interest Deductions.  Now, lawmakers may deem these tax breaks a “loophole” and therefore steal away a half billion in tax savings from Oregon businesses.   Politicians would consider stealing this half-billion as closing a loophole.

This is sad because the Trump tax cuts helped provide a $300 million unexpected surge in revenue to Oregon from increased business economic growth.

— Please support our watchdog journalism on how your taxes are being spent. Make a donation at  OregonWatchdog.com  (learn about a Charitable Tax Deduction or Political Tax Credit options to promote liberty).