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About The nugget. (Sisters, Or.) 1994-current | View Entire Issue (May 10, 2017)
Wednesday, May 10, 2017 The Nugget Newspaper, Sisters, Oregon Red winged blackbirds... 25 The Nugget Newspaper Crossword By Jacqueline E. Mathews, Tribune News Service PHOTO BY JERRY BALDOCK The birds are active in Sisters meadows. Business tax plan faces opposition from GOP By Kristena Hansen Associated Press SALEM (AP) — Oregon lawmakers rolled out a broad plan to overhaul the state’s corporate tax system Tuesday that could net anywhere between $288 million and $3 billion in extra funds for the cash-strapped state over the next two years. The tax plan would replace Oregon’s corporate income tax — among the nation’s lowest — with a tax on businesses’ gross receipts, or revenues from business- to-business transactions for things like equipment and materials, beginning in 2018. It’s a “mellow version,” as one Democrat described the proposal, of the voter-rejected Measure 97 tax hike initia- tive, which would have raised $6 billion for the next two years. The highest estimate of what the plan would raise, about $3 billion, is roughly equal to what the state says it needs to keep operations run- ning at current levels through the next two years. It would also help the state address a $1.6 billion deficit that could otherwise force cuts to various public programs and services, kick thousands off Medicaid health plans and scale back public-sector employment and benefits. But those estimates don’t account for other propos- als — including tax hikes on tobacco products, moving public-employee health plans into coordinated care organi- zations and statewide hiring freezes — that are also being eyed for the 2017-19 budget. The potential savings from spending cuts revealed last month are still unclear. Under the revenue-making plan, low-income households could also see their tax bur- dens trimmed through things like personal income tax cuts or increases to the standard deduction. Various exemp- tions for certain business dealings, such as donations to nonprofits and transactions with government or among “closely related business entities,” were also included to help soften the impact of higher consumer prices, which state revenue officials say would be inevitable. Republicans in both cham- bers, however, appeared ready to double-down on their oppo- sition. “No gross receipts tax, period. Oregonians slammed the doors shut on Measure 97 and they want to have a conversation not on a hid- den sales tax, but on reining in out-of-control government spending,” Senate Republican Leader Ted Ferrioli said in a statement. The minority party’s support for the proposal is needed because without it, the Legislature won’t have the three-fifths, or 60 percent, approval that any tax increase needs. One way around that requirement, however, is to instead send the proposal to voters for final approval in a special election this fall. That would require only a simple majority. Democratic Sen. Mark Hass, who has helped lead local tax reform efforts for almost two years, said he hopes this latest proposal combined with other spend- ing cuts could still make for a convincing package. The range of potential tax rates, 0.25 percent to 1 percent, is more comparable to other states and smaller than the 2.5 percent outlined in the labor union-backed Measure 97. The lower gross receipts tax rates would also be applied broadly, affecting more than 18,000 companies with gross revenues over $1 million versus the 1,000 or so wealthiest companies with over $25 million in gross rev- enues that were targeted in the ballot measure. — Last Week’s Puzzle Solved — This Week’s Crossword Sponsors ESSENTIALS SKINCARE IS NOW OFFERING Essentials Skincare Professional LED Light Th erapy Anti-aging & facial-rejuvenation treatments. Also FDA approved for acne treatments; safe, effective, healing. See SistersEssentials.com for information. Karen Keady, 541-480-1412 | 492 E. Main Ave. | Mon-Sat Flexible Hours | www.SistersEssentials.com WELL PUMP SERVICE Pump & Electrical Contractor PRESSURE TANKS • CONSTANT-PRESSURE SYSTEMS FREQUENCY DRIVES • MOTOR CONTROLS • PUMPS A Division of 24-HOUR EMERGENCY SERVICE Sisters Owned CCB#178543 Zach 541-420-8170 Restaurant & Lounge BRING MOM IN FOR MOTHER’S DAY! 425 Hwy. 20 W. (Next to Bi-Mart) Mon-Fri M F i 11 am-8 8 pm, Sat-Sun S S 8 am-8 8 pm, Bar B Daily D il 11 a.m-Close Cl | 541 541-549-8620
