Democrats in the Oregon Legislature and Gov. Kate Brown say they are giving up trying to increase taxes on corporations during this year's legislative session.
Democrats had hopes of overhauling the way the state taxes corporations. The goal was to raise revenue for services including schools and health care.
But the governor, along with House Speaker Tina Kotek and Senate President Peter Courtney, now all have said there won't be enough votes to get the proposal enacted, and so they're pulling the plug.
Brown called it a disappointment but pledged to keep working on the issue.
"It is clear that we need additional time and a full legislative session to work through the issues facing our tax system," she said.
Republicans, including House GOP leader Mike McLane, said they would have been happy to raise corporate taxes if Democrat had budged more on cost-cutting proposals.
"It's disappointing that we've digressed into shame and blame politics at this point," McLane said.
Democrats said they'll try again in 2019.