$311M tax moves to Senate floor vote

By Oregon State Senate Republican Office,

Senate Democrats One Step Closer to Raising Taxes on Local Businesses and Working Oregonians by $311M in Advancing Senate Bill 1507
They Simultaneously Claim “Affordability” is a Top Priority

SALEM, Ore. – Senate Democrats are sending a bill to the Senate floor that would strip $311 million in tax relief from local businesses and working Oregonians in the rest of the 2025-27 biennium, following the party-line passage of Senate Bill 1507 -7 out of the Senate Committee on Finance and Revenue. Committee staff confirmed the bill is a revenue-positive tax increase, despite Democrats’ attempts to frame it as “not revenue generating.”

“Small businesses and working Oregonians could lose out on hundreds of millions of dollars in needed tax relief in the next few years because Democrats are creating a loophole to funnel it into the state’s already-bloated budget instead. That’s a tax increase, plain and simple,” said Senate Republican Leader Bruce Starr (R-Dundee). “Democrats can’t have it both ways. You can’t claim to be focused on affordability while taking away tax relief from the very people who need it most. If the goal is truly to end the doom loop and improve Oregon’s economy, this is the wrong approach.”

“We’re in competition with other states. Idaho is competing for our businesses, Arizona has already plucked some of our best, and Texas and others would love to lure away our remaining manufacturers,” said Senator Mike McLane (R-Powell Butte), vice-chair of the Senate Committee on Finance and Revenue. “Senate Bill 1507 sends yet another signal to businesses and investors that Oregon isn’t willing to cooperate and encourage growth the way other states are. We have a governor who has said making Oregon more business friendly is a top priority. We’ll see if her actions match her words if this bill reaches her desk.”

“These aren’t loopholes for the rich—they’re lifelines for working Oregonians and small businesses. Taking them away now is reckless, especially when other states are rolling out a red carpet for our jobs,” added Senator Dick Anderson (R-Lincoln City), who also sits on the committee.
Senate Bill 1507 removes Oregonians’ tax deductions on expensive machinery and equipment purchases, car loan interest, and gains from small business stocks.