Eugene weekly., August 07, 2014, Page 11, Image 11

Cutting Taxes
on Capital Gains
Income* Would
Mainly Be
Add that to the tax cuts on income tax, Vaandering says,
its lottery than by taxing corporations during the biennial
and funding for education is decreasing. For example, from
of 2013-2015, according to the OCPP. Professor Aaron
fiscal years 2008 to 2014, Oregon has dropped its funding
Gullickson from the UO Department of Sociology calls the
for K-12 education by 3.1 percent, according to the Center
lottery the “most regressive tax system” because the people
on Budget and Policy Priorities.
who buy lottery tickets are mostly in the low-income
The Quality Education Commission says Oregon
brackets, while the people who benefit from lotteries are
schools would need $2.4 billion added to their current
generally in higher-income brackets. Gullickson calls the
budget in order to achieve the state’s education goals.
lottery the “Hail Mary” of the poor.
If corporations were taxed the same amount that they
In 2010, Oregonians voted yes on Measure 66,
were in 1973-1975, the amount of additional funds that
increasing taxes to 11 percent for individuals who had
would partially go toward schools would be $2.1 billion,
an income of greater than $250,000 a year. In 2012, the
according to the OCCP.
Oregon legislature allowed Measure 66 to expire and the
“We’re not holding corporations accountable to pay
highest tax bracket was eliminated and the next highest tax
their fair share because they say they’re the job creators.
bracket was reduced from 10.8 percent to 9.9 according to
Therefore if they’re not paying their fair share, how do
the Department of Revenue’s Oregon Personal Income Tax
we provide the quality learning environment that every
Statistics. So someone who makes $4 million per year will
student deserves?” Vaandering asks.
be taxed the same rate as someone who makes $130,000
per year.
It wasn’t always like this, Ordóñez says. “In broad
terms we need policies to make sure prosperity is
broadly shared,” Ordóñez says. “Looking back
at what we did before as a nation gives us a
The Rest of 1%
clue as to what we can do now to be more
For many workers, joining a union is a
inclusive than we were back then.”
good
way to ensure benefits, job security
(9 out of 1,000 people)
The more tax cuts the wealthy receive,
and
a
living wage. Since the late 1970s,
TAKE 23%
the more income inequality there
however, there has been a dramatic
OF CAPITAL GAINS
will be, according to a report by the
decrease in workers represented by
nonpartisan Congressional Research
unions, which directly coincides
Service, which shows that “as the
with the striking increase in income
Top one-tenth of 1%
top tax rates are reduced, the share
inequality, according to a report done
(1 out of 1,000 people)
of income accruing to the top of the
by the Economic Policy Institute.
income distribution increases — that
The OEA, a union that represents
TAKE 49%
is, income disparities increase.”
over 45,000 educators, shares a
OF CAPITAL GAINS
Some, like John A. Charles Jr.,
goal with the Service Employees
Bottom 99%
president and CEO of the Cascade
International Union (SEIU): getting
(990 out of 1,000 people)
Policy Institute, a libertarian think
the wealthiest Oregonians and
tank, say that income inequality is
corporations
to pay more of their share
ARE LEFT TO
something that shouldn’t bother people.
of
taxes.
“If
we
can’t eradicate [income
SHARE 28%
“It’s not a real issue,” Charles says. “It’s a
inequality] then we can certainly make it
OF CAPITAL GAINS
perceived issue by some people.” He adds
far better than it is today,” SEIU Local 503
that income inequality is a “natural outcome
President Heather Conray says. “We have to
by a free society.”
be able to take action to effect change.”
Charles’ assertions do not line up with reports
SEIU prides itself on organizing those
from the Congressional Research Service, which
most affected by income inequality, including
found that “large income and class disparities adversely
impoverished women. The union provides them with
affect health and economic well-being.” While health
living wages as well as voter registration in order to make
concerns are a byproduct of income inequality, income
sure their voices are heard.
*Capital gains income is generated from
inequality itself could partially be a byproduct of the loss
On July 28, the Eugene City Council voted to provide
the profitable sale of assets such as stocks,
of middle-class jobs.
paid sick days to all Eugeneans. Laurie Treiger, the
bonds and real estate.
The Oregon Employment Department found that
campaign manager for Everybody Benefits Eugene, says
roughly 3,600 middle-class manufacturing jobs were lost
that her fight won’t stop income inequality from happening,
Source: OCPP analysis of Oregon Department of
and replaced with both high-income and low-income jobs
but it is a push in the right direction.
Revenue data for tax year 2012. Economic Gains Flow
in Lane County during the Great Recession. Rooney says
“Lower-income folks are already starting at such a
to the Top as Oregon Income Inequality Soars, Oregon
that county government lost 2,100 jobs between 2010 and
disadvantage,” Treiger says. “It’s like you’re looking at a
Center for Public Policy, April 30, 2014.
2013, and education lost 1,100 jobs between 2009 and 2013.
race and lower-income folks are starting 100 yards behind
Although he says the losses seem to have stopped, the Lane
the middle- and upper-income folk. At least now if we give
County unemployment rate is hovering at 6.8 percent.
them paid sick days we are not giving them a sprained
As a result Eugene saw a 10 percent increase in the
ankle on top of that.”
Gini Coefficient — the measurement used to illustrate
As Gullickson points out, the most effective way to end
Hanna Vaandering, president of the Oregon Education
inequality. According to Bloomberg, Eugene had a 6.8
income inequality is to implement a more progressive tax
Association (OEA). She says there is a 23 percent poverty
percent increase in terms of people living below the poverty
system; however, in the fight against income inequality,
rate for students in Oregon. The most telling factor of
line starting in 2008. Now the poverty rate in Eugene is
even something as simple as giving paid sick time to
student success is their families’ socio-economic status. In
27.6 percent without counting the unhoused population.
Eugene workers is highly contested. In mid-July the county
other words, those born into poverty are more likely to be
Thanks to the loss of middle-class jobs in the area,
commissioners passed three ordinances to fight Eugene’s
impoverished later in life themselves.
Eugene’s unemployment rate was slightly higher than the
paid sick days ordinance.
Vaandering says that we’re serving our advantaged
Oregon average at the peak of the recession. Oregon had
While unions, educators and workers’ rights advocates
children well, but we’re not addressing the issue of poverty.
a peak unemployment rate of 11.6 percent while Eugene’s
fight the battle against income inequality, Tonya Bunning
“Education is the cornerstone of democracy,” Vaandering
was 12.8 percent.
is simply happy to have found First Place Family Center.
says. “It allows a path for everyone to pursue the American
Even for the employed, the high unemployment rates
“I’m just thankful this place is here because right now I
dream.”
could have a negative effect: A lack of wage growth is
don’t have the ability to feed my kids or take showers or
In Lane County, Joe Kosewic, a retired public employee
directly linked to high unemployment, and there doesn’t
wash our clothes,” Bunning says. “So, at the very least I
from Ohio, crunches numbers into maps to illustrate
seem to be any growth in the average wage in Oregon since
can make sure they eat breakfast, lunch and dinner.”
statistics in order to make the issue of poverty clearer to
before the recession, says Nick Beleicicks from the Oregon
Currently, Bunning is looking for a job. “My kids mean
folks. Kosewic’s maps show that 9,487 students live in
Employment Department.
everything in the world to me, and I would do anything
poverty in Lane County. And more than 80,000 people in
to provide for them and make sure they’re taken care of,”
Lane County were on food stamps as of May 2013.
Bunning says.
Schools get their funding from income and property
The biggest fight for a more progressive tax system,
tax. With the passing of Measure 5 in 1990, property tax
Ordóñez says, would have to come at the federal level. But,
was changed so that $5 out of every $1,000 of assessed
By the time the babies born in Oregon in 2014
he says Oregon should “do no harm” and stop giving tax
property value went to education, says Bob Estabrook of
attend school at the ripe age of 5, about 48 percent of
cuts to the wealthiest Oregonians and corporations. ■
the Department of Revenue.
them will qualify for free and reduced lunches, says
a Tax Cut for
Oregon’s
Very Rich
How green is
our valley?
The school deficit
eugeneweekly.com • A ugust 7, 2014
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