Oregon Association of Realtors opposes the new tax increases and fears loss of jobs
Oregon REALTORS® Joins Broad Coalition in Opposition to New Tax Proposals
With the push to conclude the 2009 Legislative Session now upon us, the budget debate is at the crux of conversations in Salem. Recently, the Co-Chairs of Ways & Means released a proposed budget for the 2009-11 biennium, which calls for spending $15.2 billion in general fund and lottery funds, which is a 5.3% (almost $1 billion) increase from the 2007-09 budget.
To essentially balance the budget, the proposal calls for $2 billion in cuts, $800 to $900 million in new taxes, the allocation of $941 million in federal stimulus funds and the use of $361 million in reserve funds. It is important to note that the proposed budget “cuts” are not cuts in state spending; they’re cuts to projected government spending increases proposed in the Co-Chairs budget.
In response to the challenge to generate $800 to $900 million in new revenue, the House Revenue Committee revealed several legislative proposals that attack Oregon’s businesses and taxpayers. Specifically, the proposals include a new permanent corporate minimum tax featuring a sliding scale based on gross receipts (House Bill 3405-A), a new permanent corporate income tax on Corporations with net incomes above $250,000 (House Bill 3405-A), and a new permanent personal income tax (House Bill 2649-A). The creation of a new 11% tax bracket for filings greater than $125,000 will give Oregon the distinction of having the highest marginal income tax rate in the nation.
Despite strong opposition from the business community, HB 2649-A and HB 3405-A were passed out of the House Revenue Committee on a party-line vote to the Joint Ways and Means Committee on Thursday. The bill passed the next stage of this process by passing out of a Ways and Means Subcommittee this afternoon, and are expected to pass the full Ways and Means Committee this evening. It is estimated that combined, the proposals would raise approximately $725 to $750 million to balance the Co-Chairs 2009-11 proposed budget.
The Portland Business Journal article “Business groups slam proposed tax increases” illustrates the business community’s united opposition against new taxes that will detract from Oregon’s ability to stimulate an economic recovery. Simply put, this proposal will cost jobs. According to the non-partisan Legislative Revenue Office, the new tax increases will result in the loss of at least 5,865 more jobs. The Oregon Association of REALTORS® joined the business coalition in opposition to the new tax proposals to protect Oregon’s businesses during these challenging times. With debate expected to go to the floors of the Senate and House next week, stay tuned for a call-to-action on Monday to educate legislators on the devastating impacts these tax increases would have on the real estate industry.
I have been corresponding via Email with my legislator and am experiencing a new level of participation than I did when I wrote letters.
To find your personal legislator follow this link.
http://www.leg.state.or.us/findlegsltr/