Lawmakers hunt for new Oregon tax revenue
A host of ideas considered to create more cash
By RYAN KOST
Associated Press
Sunday, March 1, 2009 1:41 AM PST
SALEM — State lawmakers have begun to examine possible tax increases to help offset the coming budget period’s $3 billion shortfall.
The House Revenue Committee held a hearing Friday on a series of income tax proposals, most of which target Oregon’s highest wage earners.
Among the possible additions are increased tax brackets for those making $125,000 or $150,000, a minimum tax for those make more than $125,000 a year and a decrease in the amount of federal taxes that can be deducted from state taxes.
With billions of dollars in lost revenues, legislators have said they’ll have to match painful program cuts with new ways to raise money.
Committee members continued to remind each other just how dire the situation was. Though the state economist has predicted a $3 billion shortfall, Rep. Cliff Bentz, R-Ontario, and co-chair Phil Barnhart, D-Eugene, both said it was more likely to approach $4 billion.
‘‘That is a very scary number in terms of reductions to the sorts of services Oregonians need,’’ Barnhart said.
Jim Welsh, a lobbyist for the Taxpayers Association of Oregon, said he thinks it’s unlikely the Legislature will adjourn without some substantial tax increases, however hard he and others may fight them.
‘‘We knew that they would probably be headed this direction, and it’s just ludicrous at this point in time to even be thinking about it,’’ Welsh said. ‘‘This will just, like a big old economic vice, it will start shutting even more things down.’’ 1/4
Tired Oregon Tax Payer wrote on Mar 9, 2009 3:59 PM:
Require, no DEMAND those receving the servies are "legally" in this country. Not legal, NO SEVICES. It's tough to say no, but these are tough times and tough meseaures have to be taken.
Another avenue would be to STOP rewarding welfare moms who continue to have children they cannot not afford. You come into the welfare system with two children, no matter how many more you have, you will only receive benefits for the original two, PERIOD. As it stands now, the more you have the more money and benefits you receive. Enough give-me, give-me, give-me.
Teachers and other school officials can "pony up" some of the costs for their medical/dental/vision insurance just like everyone else. Even a small amount, say $100.00 per month for one and $150.00 for a family up to four, with a small amount for each additional child, would go a long way in reducing the states budget shortfall.
Just a few thoughts and ideas. May not work but it would be worth looking into if legislators were really interested in doing something other than adding new taxes and/or raising existing taxes to outrageous amounts. "