Measures II, 12 shift weight to income taxes
By Shawn Wirtz
I hr tmrralri
Oregonians will receive propertv Ih\
relief hi the expense of higher income
taxes if Ballot Measures 11 and 12 pass.
The supporters "Homestead Kxemp
tion Fair Tax Plan" is simply a lax shift,
according In the NO on •». 11 and 12
Committee which iiu lodes several
business and puhli< employee
organizations.
"You aren't really giving l.iv relief,
you're jusf putting money in one pocket
and taking it out of another." said |ohn
McCulley. president of Small Business
Advocates.
The shift from high property taxes to a
higher but more "progressive" income
lax is needed, said Mike Farber. regional
organizer for Oregon Fair Share, which
sponsored the measure
"The bn aid brushstroke is th.it people
am looking for property lax relict."
Farber said Measures It and 12 con
stitute a "comprehensive plan to com
pletely fund property lax relief.” he
said.
Measure It would exempt from taxa
tion at) percent ol the value ol a
resideiu e. up to a maximum ol $25,000
Renters would receive an equivalent
rebate. School districts and county and
i itv governments would lose Slid
million in property tax revenues n<i Hi
ding to the Legislative Revenue (ttlii e
Measure I I requires the state to make
up HO percent of the lost revenues Its
companion Measure 12 will increase
personal and corporate income taxes i>\
$20.1 million, which would tultill the
state's obligations under Measure I I
Additionally. Measure I I requires Ih-I
ween 10 and fit) percent of slate lottery
funds lie earmarked to help bind the
relief. Currently, lottery funds are
targeted Ini eionomii development
projects.
Under its provisions, il Measure It
receive* mare ye* votes than Measure 7.
the sales tax. or Measure 9. the property
tax rate limitation. Measures 7 and 9 w ill
lie repealed. A sales tax could l>e in
Iroduied hv an initiative measure on!\
The current system is "incredibly
regressive." said Farber The new plan
"restructure* the wav income taxes are
raised righl now ." he said.
Measure U would reduce the lax rales
for the lowest personal and corporate
brae kets and ini lease the rales tor the
highest personal and corporate brackets
Households with incomes of less than
S50.IHN) would pav lower net taxes,
while those who generate incomes ol
more than Salt otto would pay higher net
taxes, according to the legislative
Revenue Office.
"Two thirds of all citizens will see
their income tax remain stable or lie
reduced One third will go up." I arlior
said
Ol the SU9.I million increase S.IH
million will come from increased cor
porate taxes The flat corporate tax rate
ol 7 "> pen ent w ill lie graduated from a a
pen out to IU a peri ent
This adjustment will have negative el
lists on businesses, said McCullex "I
subscribe to the theory that corporations
don't pav taxes, people pav taxes " he
said.
"Socondlv it von're looking at
n’vilali/.ing the stale s rt iniomv mi ren.x
mg income taxes is the worst tiling von
can do." MiXadley continued.
W hen corporations look at places to
Iih ale. "they look at a lot ol different lat
tors, and the income tax is a verv minor
tai lor." said Farliei
"I'm concerned aland the businesses
that are already in Oregon." Mct'ulley
said.
II Measure 1 I passes without Measure
IJ. the stale will still have to fund the
reliel hv raising income taxes oi culling
the state budget. ai l ording to an opinion
ndoasod by stair Attorney (Inneral I)hvh
I'nihnniavi'r
"f ven if Measure 11 passes b\ iisi-ll it
Inn rs till' Iryislalors til ilr.il v\ till mi nine
l.i\ issues, ' said l-'arlier "Tliev re seared
In ili'.ilh In take mi the im tiiii«- lax ipies
lion.” hn said
"ll s just Iihi riskv." said Margaret |
llallmk. director til research fur lilt’
Oregon 1‘iildu i. m |> In v«m-s Union
"I’erhaps I lit* |in i|u mi'itls have more
lailh lli.il lilt- l i'yislaliirf will liiiul this hi
a way that's less painful." she said.
It Ihi’ legislature (Its.ides to fund tint
relief w itli budget t nts. "the ellet Is will
lie tin students and rts ipienls nl human
resnim es programs." Ilallotk said
‘ This would la- a very high blow to
the current efforts at restoring higher
education to adequate levels." she said
An ai mss the tsiard cut would reduce
the higher education budget h\ 17 per
I cut. or $H7 million lor tile l*IH7 PIMH
biennium, she said
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