The tax debate begins: House leaders square off

Speaker Dave Hunt and Republican leader Bruce Hanna discuss ballot initiatives in Oregon City

By Anthony Roberts

The Clackamas Review, Nov 17, 2009, Updated Nov 18, 2009

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The House Democratic and Republican leaders fired some of the first verbal volleys in what will likely become a fierce, statewide political battle over two tax initiatives in the January election.

House Speaker Dave Hunt (D-Gladstone) and Republican Minority Leader Bruce Hanna (R-Roseburg) debated Measures 66 and 67 during a North Clackamas Chamber of Commerce-sponsored breakfast at Oregon City’s Rivershore Bar & Grill last week.

The measures are ballot initiatives that attempt to repeal tax increases on corporations and wealthy Oregonians that were passed during the 2009 legislative session. Measure 66 increases the personal income tax on Oregonians who make more than $125,000 or households that make more than $250,000. Measure 67 increases the corporate minimum tax. The measures are on a Jan. 26 special ballot; a yes vote upholds the increases.

The discussion likely lends insight into how the yes and no campaigns will frame their arguments over the initiatives.

Hunt drove home the point that the vast majority of Oregonians will see no change in their taxes, and most Oregon business will see only the marginal increase in an 80 year old tax rate. The personal income tax, he pointed out, affects only the highest Oregon wage earners, and only increases taxes on any of their income over $250,000 if they file jointly. The increase is also cut in half by 2012.

“Ninety-seven percent of Oregon households will pay zero (in increases),” he said.

Hunt stressed that most businesses will only face an annual increase in the corporate minimum tax, which has remained at $10 since 1931. It would rise to $150.

“Show me a business where that kills a job,” Hunt said.

Larger corporations with more than $500,000 in revenues will pay one-tenth of 1 percent of total revenues. Hunt said that merely moves Oregon from having the “third to fifth lowest” corporate taxes, and keeps rates lower than the four states that border Oregon.

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