Tagged: Oregon Budget

It was a day of drama in the Oregon House Wednesday. First, majority Democrats failed to round up enough “yes” votes for a $275 million tax hike. Then, Democrats scored a victory by sending their version of a public pension cost-cutting proposal to Governor John Kitzhaber.

The plan targeted upper income earners and corporations. But tax hikes require a three-fifths vote and Democrats needed at least two Republicans to cross the aisle to move their measure forward. That didn't happen.

SALEM, Ore. – Oregon Governor John Kitzhaber told lawmakers Monday to approach a possible sales tax with caution. Oregon is one of five states without a sales tax and critics say that leaves state finances vulnerable to economic ups and downs.

The governor told a Senate panel that a sales tax is one possible component of a major overhaul to the state's tax code. But he said it can only happen if Oregonians are on-board.

SALEM, Ore. – Democrats in the Oregon House are backing away from a key aspect of their budget-balancing tax measure. They’re no longer proposing to end the deduction for charitable donations for some high-income earners. The move Monday comes in the face of withering criticism from nonprofits.

The original plan would have applied only to households earning more than $250,000. Majority Democrats said it would have affected less than 3 percent of Oregon taxpayers. But nonprofits complained that those taxpayers are the ones with the ability to make bigger donations.

SALEM, Ore. – Democrats in the Oregon legislature are offering up more details of their plan to raise an additional $275 million for the upcoming budget. High-income earners and some businesses would pay more under the proposal, which was released Tuesday.

Democratic leaders say under their plan, less than five percent of Oregonians would pay more in taxes. The increases are aimed at households earning more than $250,000. Those taxpayers would be able to claim fewer deductions and exemptions on their tax returns.

SALEM, Ore. – Public employees in Oregon are voicing their objections to a measure aimed at cutting the cost of public pensions. They packed a legislative hearing in Salem Wednesday. Legislative budget-writers have floated a proposal that would limit cost of living increases for retired workers.

James Jacobsen is an administrative assistant in the College of Education at the University of Oregon. He expects to retire in about four years. And he says lawmakers are looking for cash in the wrong place.