Rep. Elmer: Lies behind SB 1507 passage

House Republican Leader Condemns Passage of Federal Disconnect Bill
BY Oregon House Republican Leader and State Representative Lucetta Elmer,

SALEM, Ore. — Today, Oregon Democrats passed SB 1507  —  eliminating $311 million in federal tax breaks that Democrats are mischaracterizing as a tax relief package. This bill takes federal tax cuts promised to Oregonians and cancels them at the state level at a time when Oregonians can least afford it.

Impact on Oregonians

Ÿ • Oregonians pay some of the highest income taxes in the country.

• Ÿ At 9.9%, the top rate of Oregon’s income tax kicks in at a marginal income of $125,000 whereas the top rates in California, New Jersey, and Washington, D.C., are on marginal income above $1 million, and New York’s top rate doesn’t hit until $25 million.

Ÿ• Individuals in Portland are paying a 13.9% marginal tax rate on incomes over $125,0000 – which is the highest rate imposed on that income threshold in the entire country.

Impact on Oregon businesses

Ÿ • Since 201, state business taxes have increased by a staggering 77% to $3.4 billion.

Ÿ• In 2026, Oregon slid to 35^th in general tax competitiveness and 49^th in corporate tax competitiveness.

•Ÿ Proposed disconnects in SB 1507 threaten provisions meant to spur economic investment including bonus depreciation, qualified small business stocks, auto loan interest and proposed new tax credits including a jobs tax credit.

“At a time when Oregon has been shedding businesses due to high taxes that cripple our state’s ability to compete, Oregon’s majority party should be taking action to protect businesses, encourage economic investment, and hold onto federal tax breaks that provide relief,” said House Republican Leader Lucetta Elmer (R-McMinnville). “Instead, while nine other states cut their income taxes last year, Democrats in Oregon voted to further increase our state’s already high tax burden—causing more financial harm to families and businesses.”