Legislators look for new sources of tax revenue

By Ryan Kost, Associated Press Writer
Sunday, March 01, 2009 | 23 comment(s)

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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.”
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almost homeless wrote on Mar 8, 2009 6:24 PM:

To all the Legislators, we do not need any new taxes.
Budget and live on what you got coming in.

People are at the end of their rope, no jobs, no money, living on spam and peanut butter, bread.

NO NEW TAXES don't you understand.

TRUCKER wrote on Mar 8, 2009 3:30 PM:

It looks like our term-limit laws are too liberal. Perhaps we should limit these clowns to ONE term and NO PERS benefits. That way the folks in the Oregon Legislature would be sharing the pain the rest of us are feeling, and would pass laws that are more in touch with reality.

Totsoc wrote on Mar 8, 2009 11:20 AM:

Lets see.. treat marijuana like alcohol, except for people who are in social services, military and etc.. and tax the hell out of it. Thats less arrests, expensive investigations and etc... Stop giving ludicrous pay raises to paper pushers in schools and government. And the list goes on and on.....

WHY wrote on Mar 8, 2009 7:29 AM:

I am getting tired of the state complaining there is no money yet minimum wage went up to 8.40 an hour in January.

Every time minimum wage goes up, the cost of everything else goes up. Since I don't get a raise I am worse off because I am paying more to live.

Instead of raising the minimum wage, make sure college is affordable and require employers to pay higher wages for a job that requires experience or a degree.

newbie wrote on Mar 8, 2009 6:10 AM:

i agree with 420---- Ca. is looking to tax ALL Marijuana and estimates over 1 billion in revenue, they already tax medical marijuana and it has brought in MILLIONS. Id rather have that taxed than my gas taxed or property tax raised... ITS NOT GOING AWAY SO TAX IT!

Bob wrote on Mar 7, 2009 11:04 AM:

We have no one to blame but ourselves: we put these people in office. You know, the ones that look good on TV and can read two teleprompters with so much skill that you actually think they're talking to YOU! We're an MTV society and we choose the slickest, most smooth-talking candidate that has the incredible ability to stand in front of millions of people and lie with impunity. We certainly can't elect someone who tells the truth. Because with the truth comes reality, facts, hard choices and responsibility.

Perhaps we should be looking a bit closer at those sitting in office today, and those chasing the motherlode (Congress).

I like the idea... wrote on Mar 6, 2009 7:13 PM:

Of taxing marijuana sells. And the churches (real sin tax) lol. And the non-profits.. That's should start something up.

Jack wrote on Mar 5, 2009 10:41 AM:

To Geno Landrum:

If the city sold their property we couldn't have an old movie theater; future county museum; $1.2 million or more for tourist toilets; and place to "holler". Of course that would mean the end of Urban Renewal which would allow more property taxes to go to schools and public needs and the end of government subsidizes to downtown merchants.

Resident wrote on Mar 4, 2009 8:36 PM:

Why do we pay a bunch of lawmakers to make more laws for us? Now they are in Salem figuring how we can pay more and which type of dogs people can own. Is there anything else that can be regulated?

geno landrum wrote on Mar 3, 2009 12:21 PM:

Here is an idea that will work even in a down real estate market! All government (State/Counties/Cities, including School Dists./Urban Renewal agencies, et al) Lease or sell all real properties being held. I'm not referring to parks, etc. (but with a State budget projected at 3 billion that's with a Capitol B. Quote: "A million dollars here and million there adds .......real money" this quote is old news we need to change million to billion. Get rid of all real estate lands, not in use, at any price!! After all any dollars is more than you paid for it! Cut your losses an put it back on the tax rolls!! After all at the rate the tax raisers are going you will have lots of new property in the near future!!

The Brutal Truth wrote on Mar 3, 2009 8:49 AM:

I dunno whats more scary then a legislature in session, looking for ways to stir up more tax dollar.

observer wrote on Mar 2, 2009 6:37 PM:

Hey, I've got an idea! Monaco Coach just sent layoff notices to their 2500 remaining employees and is going out of business. So... let's raise taxes! What are our morons in Salem thinking? I'm a Democrat. I voted a straight Democratic ticket and I DEMAND that at least 30% of state employees be laid off. DO NOT touch schools! Cut police back to essential services (no more arrests for victimless crimes, smoking within 10 feet of a door, minor speeding violations, and please do away with those stupid seat belt enforcement dog and pony shows).

Taylor wrote on Mar 2, 2009 12:30 PM:

To Jim the state employee , when the Oregon states official mascot the leach kills it host the Oregon tax payer , you will have no trouble finding a real non tax leach job .

Mike wrote on Mar 2, 2009 11:37 AM:

Jim, and all of you other public employees - What this state needs are schools, *basic* police and fire protection (meaning: forget speed traps, minor drug busts, and victimless crimes), and the Oregon Medical Insurance Plan, which will provide basic health care for the 25% or so of Oregonian's who don't have because their employers dropped it or they lost their job. EVERYTHING else needs to go! We need to get rod of ESL, housing programs (which merely attract homeless here), and every sort of clerical position, which can be done far more cheaply by private contract. We need to axe at least 30% of state and other public employees and dump pseudo government agencies (public transportation, water and electric coops) out of the public employee benefit programs. AND, we need to cut benefits for public employees to be the average of what their private sector counterparts receive. Do that and we can cut taxes. Why on earth is the legislature even thinking about raising taxes anyways? One core idea of the Obama Administration's economic stimulus plan and a primary reason he was elected, was to provide tax cuts to middle and lower class families.

barb wrote on Mar 2, 2009 7:38 AM:

To the folks that voted in the democrats, all they know is how to raise taxes and spend money. Would be nice to have them meet only every three years.

Iwanttoknow wrote on Mar 1, 2009 9:37 PM:

I want to know: Is Oregon a 'debtor' state. Do we (as a state) send more tax dollars to Washington DC or do we receive more federal dollars than we send? I my case I'm not a 'debtor' tax payer because I worked hard and I'm ENTITLED to my federal, state retirement, social security and disability benefits: besides with all the tax cutting benefits I'm entitled to I don't even have to pay additional (my money) taxes at the end of the year. Gosh, America you are a great country! All that's missing is a great city position that has a great salary, that needs someone to lose money for them (I'm that person besides they don't have to give me benefits, except an IRA)then I will have the perfect lifestyle for Oregon!!

Hanover wrote on Mar 1, 2009 9:30 PM:

Choke the chicken so it will lay more eggs.Punish the hard working family.Salem has no budget and live above the law. We the voter and tax payer are to blame they should all go down the road.Salem has no checks and balances. Theives is a kind word.

Iwanttoknow wrote on Mar 1, 2009 9:24 PM:

I want to Thank the Governor for giving up 5% of his salary (wonder if his perks also was reduced 5%?) so, lets see he gives up 5% the Oregon economic is down 20% (?)so that seems fair. Now, if Oregon's overall unemployment is 10% (rounded) and the boss of the state gives up 5% that will help......exactly no one on unemployment! Way to go Gov! I get a little tired of the 'excuse' that an executive must be paid a high (gross) salary to do the job they are hired (elected) to do or not to do. No matter how bad their company (state) is they still require the high salary or they will go somewhere else (wonder where is). I would say 'let them go' unless they are directly involved in their 'area of responsibility' profits. It's not logical pay and keep someone when the 'company' is losing money. After all, I will bet, somewhere in our 10% unemp. we could replace him/her. It does not take a 'genius' to take a large salary and lose 'company' money. Once again Gov. thanks!

Jim wrote on Mar 1, 2009 7:11 PM:

I'm a State employee.

I have been in the same position for more than 20 years. I put myself through college in order to be qualified to do the job I do. I put myself through college while holding down a full time job. With no help from anyone.

The sole, underlying reason for the existance of the position I hold is service to the taxpayer. I do it with all the ability and care I have.

So, I'm a useless overpaid employee. Anytime, anyday, I would challenge anyone to contact me and try my job for one week. I'll even help.

Let's see what you're opinion is then.

Anytime.

Taylor wrote on Mar 1, 2009 2:37 PM:

Why don't the morons stop spending money they dont have , shut the whole Oregon government down for all I care they are tax leaches .

420 wrote on Mar 1, 2009 11:02 AM:

Marijuana that's the name and away go tax troubles down the drain.

tax payer wrote on Feb 28, 2009 7:41 PM:

Every seem to want something for nothing how much more can us that work and try to make life support when all this state does is add more give away programs. There is more people on Oregon Medical,Oregon Welfare,Oregon food stamps and yes Social security that find it a way of life try going to work and stop depending on us that are and own propertie to support your needs.I am not saying that all are not in need just the ones that are a drag to those that arn't.Enough stop the drugies and dead beats we are tired of supporting them.Perhaps we need to change our elected officals that support these types go to your social security offices and see the young folks that have back problems well that can happen sitting on your rear and trying to beat the system Orgoneans lets put a stop to that of the pot and coach crew make them earn there keep.There are a lot of jobs they can do for the state to repay there debt from lack of ambition !!!!!!

Mike wrote on Feb 28, 2009 5:29 PM:

Well, the legislature is so far out of touch they could be called insane. Unemployment is 10%. Raising taxes will cost people their homes. For what? So that already overpaid public employees get more benefits and pay raises?


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