In Anti-Tax Oregon, Voters Consider Tapping The Rich - LATimes

FINALLY... And not a moment too soon!

In anti-tax Oregon, voters consider tapping the rich
Two measures will test how willing residents are to increase taxes on those theoretically best equipped to pay them -- the wealthy and big companies.
By Kim Murphy
January 26, 2010

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Oregon officials know all about anti-tax fervor.

Over the years, voters here have capped property taxes (saddling the state with two-thirds the cost of running the schools) and passed a constitutional amendment requiring rebates whenever tax receipts come in 2% over budget. Nine times they have been asked to OK a sales tax -- and said no. Proposals to increase the state income tax? Down in flames twice.

But now the Legislature is taking a tack that analysts think could finally pull the rug out from under the tax revolt: soaking the rich.



In mail-in voting that ends today, Oregon is considering measures to raise taxes on households earning $250,000 or more and on individuals earning at least $125,000, as well as hike corporate taxes. About 39,000 of the state's 1.5 million taxpayers would be subject to the higher tax, and some big companies could see their annual bills go from $10 to $100,000.

The success or failure of Measures 66 and 67 will be a concrete test -- one of the few in the country this year -- of how willing voters are to accept tax increases targeted at those theoretically best equipped to pay them.

"These measures are the first test of a progressive solution to the recession," said Cynthia Kain, a spokeswoman for the National Education Assn. who has been working to help pass the ballot measures.

Opponents of the tax hikes warn that they could cripple small businesses and jeopardize employment in a state that has lost 131,000 private-sector jobs during the recession.

But many voters appear willing to risk that. Polls have shown both measures ahead, although one late last week showed the gap tightening.

"I'm convinced. Let's tax the hell out of 'em," said Rebecca Maxwell, a young software developer from Portland.

Kevin Looper, who is running the campaign to ratify the ballot measures, said that "when we started doing focus groups, it was amazing to hear voters demanding to know where the banks were on these measures. Because they wanted to be on the opposite side."

The banking industry has contributed heavily to the Oregonians Against Job-Killing Taxes campaign. Billionaire Philip Knight, chairman of Beaverton-based Nike Inc., and Timothy Boyle, chief executive of Columbia Sportswear Co. in Portland, also have kicked in large donations, as have business industry groups, big timber companies, farming groups and lawyers.

The campaign in support of the tax increases has been financed mostly with contributions from small businesses and public employee unions -- including $1.65 million from the Oregon Education Assn. and more than $1 million from other local and national public employee labor unions. (They were inspired, no doubt, by the opposition's assertion that the budget woes could be lessened if state employees demanded fewer pay increases and started paying a share of their healthcare.)

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Link: http://www.latimes.com/news/nation-and-world/la-na-oregon-tax26-2010jan26,0,1544306,full.story

:woohoo:

:evilgrin:

Really does frame the position well.

FAIRNESS for the MIDDLE CLASS, PRESERVING vital services.

If only our national level politicians actually bothered to start fighting like this.

:bounce:

:hi:

If state-level increases like this are to work, there will have to be some sort of national movement toward higher taxes on top earners. These taxes have killed states like California, New York and Maryland, because most of the high earners are quite mobile -- they simply move to a lower-tax state, depriving the higher-tax state of even more revenue.

:evilgrin:

:spank:

:rofl:

:evilgrin:

:hi:

Is a majority of voters smart enough to raise taxes on the top 1% of corporations and individuals to help fund the programs and services that benefit everyone? And yes, I find it disturbing that these measures are coming down to the wire.

The good news is that in vote-by-mail Oregon, the Secretary of State's office is predicting about 66% turnout for a special election, and the results will be tabulated by 8:30 p.m. tonight. If it's still close enough that absentee ballots will make a difference, we'll have to wait, but we should get a pretty definitive answer as to whether Oregonians know enough to tax those with the dough to run the state.

:hi: