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Oregon may hike tax to close budget. Republicans cave.
The Oregonian ^ | 9/3/2002 | HARRY ESTEVE

Posted on 09/03/2002 8:37:07 PM PDT by Jack Black

Borrowing, income tax are options for House

09/03/02

HARRY ESTEVE

Democrats 32-28 -- was far from certain. Even the chairman of the committee working on the proposal, Rep. Ben Westlund, R-Bend, called it "half a plan."

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The Legislature is meeting in a record fifth special session of the year to deal with a $482 million shortfall caused by plummeting tax revenues. With the borrowing plan Simmons supports, a little more than half the shortfall would be covered by selling cigarette tax bonds. State agencies would have to trim their budgets to cover the rest.

A second option appeared to be picking up steam, however. Rep. Bill Witt, R-Cedar Mill, said he and Rep. Lane Shetterly, R-Dallas, met twice Monday with Kitzhaber and agreed on a financial package that would cover the entire shortfall.

Witt said the agreement includes $290 million from a temporary, three-year increase in income tax rates; about $100 million in either borrowing or use of the Common School Fund; and $80 million to $100 million in budget cuts. With the plan, income tax rates would notch up to 5.2 percent, 7.3 percent and 9.4 percent, instead of 5 percent, 7 percent and 9 percent.

"We've reached a point where tax increases have to be part of the solution," Witt said. He said 10 to 12 House Republicans are prepared to support a package that includes some sort of tax increase. Combined with Democrats, that would be enough to send the bill to the Senate.

"The challenge now is to get the speaker to allow us to get it in bill form and get it to the floor," Witt said. "The speaker hasn't conceded that yet."

The Senate has yet to weigh in on Simmons' proposal.

"We're not doing anything. We don't have any committees meeting," said Senate Majority Leader Dave Nelson, R-Pendleton. "We're just waiting to see what the House does."

Tom Towslee, a spokesman for Kitzhaber, said the governor isn't ready to talk in detail about his discussions with Republicans. But he said Kitzhaber likes the fact that they are willing to go beyond mere borrowing and cutting to fix the budget problem.

"We're moving from a two-legged approach to a three-legged approach," Towslee said.

One of the biggest concerns Republicans have about Simmons' proposal is that it would require voter approval to take effect. That question couldn't be answered until November, two months into the school year.

The plan Witt and Kitzhaber worked on would not require voter approval, unless someone gathered enough signatures on a referendum petition to force it to the ballot.

The Legislature called itself into special session Sunday -- the first time it has done that -- after the latest revenue forecast showed that the state would fall an additional $482 million short of the two-year, $12 billion budget approved last year. It is another in a string of state shortfalls brought on by Oregon's rocky economy.

Last week, Kitzhaber presided over a hearing in which state agency directors detailed deep cuts that would have to be made unless lawmakers approved new spending. Among them: layoffs of thousands of teachers, release of almost 4,000 state inmates because of prison closures and layoffs of more than 100 state troopers.

Kitzhaber has argued against borrowing and bonding measures, unless they are accompanied by more direct revenue sources, such as a tax increase. He said his biggest concern, in addition to immediate cuts, is a growing hole in the 2003-05 budget, estimated at $1.5 billion.

Harry Esteve: 503-221-8234; harryesteve@news.oregonian.com Dave Hogan: 503-221-8531; davehogan@news.oregonian.com


TOPICS: Government; Politics/Elections; US: Oregon
KEYWORDS: biggovernment; bloat; boilingthefrog; moretaxes; rinosonparade; socialism; welfarestate
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So much for Witt the Republican! I like the way the rates raises are graduated, the "rich" get a bigger rate than everyone else.
1 posted on 09/03/2002 8:37:07 PM PDT by Jack Black
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To: Jack Black
> Even the chairman of the committee working on the proposal, Rep. Ben Westlund, R-Bend, called it "half a plan."

Maybe Oregonians can unelect all those who voted for the half assed plan.

2 posted on 09/03/2002 8:38:48 PM PDT by Dialup Llama
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To: Dialup Llama
Issuing cigarette tax bonds? These idiots are making a long-term financial commitment that is directly tied to their own efforts to reduce the activity that pays for....
the bonds!!!!!!!!
3 posted on 09/03/2002 8:59:21 PM PDT by larry h
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To: larry h
As long as there are some no-income tax states (two bordering Oregon) I think they may be overplaying their hand. No sales tax is a nice thing when your spending 100% of your income an 8% income tax or sales tax is the same. However when you make enough to save money it's a big difference.

It's precisely people in their earning prime who have the ability to move, be consultants and work from home offices in states like WA and NV. Which is what many will do. Las Vegas is full of $200,000 condos. They seem expensive until you realize that they pay for them self in tax savings.

Oregon may follow California into permanant tax problems if serious "high earner" exodus from the state occurs.

Oh, yeah, there is a ballot initative to raise taxes by ANOTHER 20% already qualified for this fall's election. (11% to employers and 9% to employees). That could put the top tax rate at 19%!

It will be fun to watch the real estate market implode.
4 posted on 09/03/2002 9:10:08 PM PDT by Jack Black
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To: Jack Black
Kruse and Doyle are the only Republicans who even have a proposal that talks about looking at ways to cut spending, and the rest of the Republican scum won't even give it a hearing. For crying out loud, the Republican congress passed a 17% budget increase this year and now they are crying about the need for more revenue to fund it. But, they won't even consider the possibility of looking at the new programs that haven't even started yet for cuts. Instead they are threatening us with closing prisons and dumping criminals back on the street; cutting three weeks off the end of the school year (even though schools are still getting a 9% increase); cutting the number of patrol officers; closing mental health group homes and dumping the residents on the street. No, they can't cut funding for public broadcasting, or the Oregon Socialized Health Plan, or CIM/CAM, or the OLCC or the Arts Council, or the Race Based Commissions, or PERS, or Dept. of no-Economic Development. Goodness no! Those are essentials. But keeping criminals in prison is expendable.

The worst part is that so many Oregonians are so bone stupid that they'll fall for it, too.

5 posted on 09/03/2002 9:17:36 PM PDT by Jolly Rodgers
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To: Jack Black
The Oregon Democrats, and too many so-called Republicans, went on a furiously-paced spending spree during the "good years", and now, instead of cutting back on all the extra government bureaucracies (read, democrat voters grateful for taxpayer-paid income), the governor and others call for HIGHER taxes on citizens already suffering from the recession.

Typical Democratic and RINO non_sense.

As for voting fraud in Oregon, how do you think the Democrats got so powerful? And maintain themselves in power? They won't give this up willingly.

Republican leadership in this state is too busy sucking up to the Democrats, hoping for crumbs, to be our knights in shining armour. We are going to have to do the work, of protecting our votes from fraud, ourselves. NOW is the time to begin to think about that and to make our plans.
6 posted on 09/03/2002 9:52:29 PM PDT by WaterDragon
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To: Jack Black
Another income tax increase is poison for the economy of Oregon. If you care about Oregon and its people just don't sign on to any tax increases. Call for tax cuts; that will help Oregon recover.

7 posted on 09/03/2002 10:16:21 PM PDT by MarkM
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To: Jack Black; WaterDragon; Jolly Rodgers
The amount of the shortfall is only 3.3%. For the life of me, I can't figure out why they can't cut 3.3% from a huge budget increase!

Bill Witt is an idiot and wants nothing more than to keep his seat in the House. In fact, I believe that's all that our so-called representatives care about.

And, don't even get me started on Vera and the business climate in Portland...

" No, they can't cut funding for public broadcasting, or the Oregon Socialized Health Plan, or CIM/CAM, or the OLCC or the Arts Council, or the Race Based Commissions, or PERS, or Dept. of no-Economic Development. Goodness no! Those are essentials. But keeping criminals in prison is expendable."

"The Oregon Democrats, and too many so-called Republicans, went on a furiously-paced spending spree during the "good years", and now, instead of cutting back on all the extra government bureaucracies (read, democrat voters grateful for taxpayer-paid income), the governor and others call for HIGHER taxes on citizens already suffering from the recession."

Excellent points!

8 posted on 09/04/2002 7:50:33 AM PDT by dixiechick2000
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To: Dialup Llama
Maybe Oregonians can unelect all those who voted for the half assed plan.

Would these be the same Oregonians that were chanting "Raise our taxes!" on the Capitol steps?

9 posted on 09/04/2002 7:55:54 AM PDT by gundog
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To: gundog
Cut spending, lower taxes, we're in a recession !!

Death To all Tyrant's !!

The Second Amendment...
America's Original Homeland Security !!

10 posted on 09/04/2002 8:25:18 AM PDT by blackie
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To: Jack Black
Witt said the agreement includes $290 million from a temporary, three-year increase in income tax rates;

Bool-sheet!

11 posted on 09/04/2002 8:27:38 AM PDT by Lizavetta
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To: Jack Black
If there are any Oregonians out there who can enlighten me on whether Oregon is a good place to go (Klamath area in particular) please email me.
12 posted on 09/04/2002 8:29:22 AM PDT by Lizavetta
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To: Lizavetta
Oregon's a great place to live if you want to mooch off the gummint.

If you want to earn a living it ain't always so great.
13 posted on 09/04/2002 8:36:26 AM PDT by El Sordo
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To: Lizavetta
Ya might wanna read this one. That aside, there's nothin' wrong with Oregon that one more transplanted Califorian can't fix. Change yer license plate immediately or you'll see gundog's finger wavin' at ya. (You'll be amazed at the number of people up here pretending to be me.)
14 posted on 09/04/2002 8:42:26 AM PDT by gundog
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To: Lizavetta
Link didn't work...oh, well; it just some nonsense about a nun being raped and strangled with her own rosary by an illegal immigrant in Klamath Falls. The place ain't all bad though...the other nun is expected to live.
15 posted on 09/04/2002 8:44:52 AM PDT by gundog
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To: El Sordo
But we got poverty with a view.

The ace in the hole is the bonus of all the fires that are going to need to be salvage logged. Of course the politicians will not back good jobs and new tax payers to solve the economic woes of the state. That would return the population to independence and not state handouts.

Don't expect to cut out the new Arts and culture funding to balance the budget. Ben Westland expects to get the directors job for that unneeded crap at a salary that beats working for a living, especially in Oregon.

www.bend.com

This site has sidebars of central Oregon wages and other economic data, it is a fine cronicle of the impoverishment of rural Oregon.
16 posted on 09/04/2002 9:01:24 AM PDT by lobo59
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No income tax in Vancouver, WA, correct?
17 posted on 09/04/2002 5:11:30 PM PDT by Diddle E. Squat
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To: dixiechick2000
The amount of the shortfall is only 3.3%. For the life of me, I can't figure out why they can't cut 3.3% from a huge budget increase!

With the new revenue projections (showing that the recession is cutting even deeper into us producing citizens), it now appears that they would have to cut about 5%, which shouldn't be too hard considering they just passed a 17% increase. That would still leave them with a 12% increase, for crying out loud! Damn it pisses me off that so many people in Oregon aren't aware of these facts. Our media is so left-wing biased that it slays me.

Bill Witt is an idiot and wants nothing more than to keep his seat in the House. In fact, I believe that's all that our so-called representatives care about.

Bill Witt called in to the Gregg Clapper show this afternoon. Did you hear it? Oh, man that guy is a stinking rotten socialist RINO tax and spender. He just kept repeating that he didn't have the power to introduce a bill to cut spending -- even though he just introduced a bill to increase taxes. Doh! Clapper didn't let him skate, either. He made sure the audience saw through the charade. The ultimate was when Witt claimed he interviewed 3,000 of his constituents and they asked him to raise their taxes! What a lying sack of dung.

And, don't even get me started on Vera and the business climate in Portland...

As soon as my wife gets her BS in nursing (1 yr) and my kids are out of high school (3 yrs), I'm going to start job hunting in a state with lower taxes. Heck, I might even look for a job out of the country and find a way to pay as little tax as possible to fed, state or local. It's not much, but it's up to each person to do their part and let it all accumulate.

18 posted on 09/04/2002 8:45:27 PM PDT by Jolly Rodgers
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To: MarkM
If you care about Oregon and its people just don't sign on to any tax increases.

Like we'll really be given a choice. The public employees and welfare class outnumber us producers by quite a bit. There is some speculation that the democrats actually want an income tax referendum on the ballot because it would inspire their base to get out and vote for more taxes, which would also mean more votes for their candidates.

19 posted on 09/04/2002 8:48:49 PM PDT by Jolly Rodgers
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To: Lizavetta
If there are any Oregonians out there who can enlighten me on whether Oregon is a good place to go (Klamath area in particular) please email me.

It's good in some respects and bad in others. We have a very high income tax and the environmental politics can be devastating to property owners. On the other hand, it has a wide variety of climate and land types to choose from, depending on your preferences.

20 posted on 09/04/2002 8:51:32 PM PDT by Jolly Rodgers
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