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3A THE DAILY ASTORIAN • WEDNESDAY, FEBRUARY 14, 2018 State Senate works to reverse budget impact of federal tax bill By CLAIRE WITHYCOMBE Capital Bureau SALEM — Two business tax proposals aimed at tem- pering the effects of federal tax reform on Oregon’s budget appear to be moving forward. Both proposals would change state tax policy in response to the sweeping changes to personal and busi- ness taxes in the federal Tax Cuts and Jobs Act signed into law in December by President Donald Trump. Legislative economists project that the changes in the federal law — if Oregon law is static — could mean a $220 million hit to state revenues in the two-year budget, a scenario that some lawmakers are trying to prevent during the 35-day session. The first of those bills eas- ily passed the state Senate on Tuesday, and the second is expected to go before the Sen- ate for a vote today. Part of the federal law was aimed at incentivizing multi- national corporations to bring back, or repatriate, income held overseas for tax purposes. The Senate passed a bill Tuesday allowing the state to collect taxes on those overseas earnings. That means $140 mil- lion in additional one-time tax revenue, according to the Sen- ate Democratic caucus. That ‘I can’t find a scenario where we have more winners than losers on this.’ Anthony Smith a lobbyist for the Oregon chapter of the National Federation of Independent Business sum would be put into the state’s rainy day fund. Some Senate Republicans unsuccessfully proposed an amendment that would have sent the windfall to a proposed fund to help pay down the unfunded liability of the state’s public pension system. The second bill before sen- ators this week concerns how certain businesses are taxed. The Senate is scheduled to vote on whether to depart from fed- eral changes on that issue today. Owners of pass-through businesses — such as partner- ships, S-corporations, LLCs and sole proprietorships — pay taxes on business income on their personal taxes, rather than the business paying taxes. The Tax Cuts and Jobs Act allows owners of pass-through businesses to deduct 20 percent of that income on their federal tax form. While Oregon pass-through businesses would still be able to claim the 20 percent deduc- tion on their federal taxes, the bill before the Legislature would eliminate that deduction from state income taxes. Anthony Smith, a lobbyist for the Oregon chapter of the National Federation of Inde- pendent Business, says that the bill will mean that the state’s small businesses will pay $212 million more in taxes in 2018 than they would if the Legisla- ture did nothing. The bill also allows sole proprietorships to qualify for the state’s lower rates — if they also met certain other qualifica- tions — and increases the state personal exemption credit, which is money a taxpayer can deduct for themselves and any dependents. But Smith maintains that the increase in taxes due to the loss of the deduction is greater than the benefits for small businesses. “I can’t find a scenario where we have more winners than losers on this,” Smith said. State Sen. Mark Hass, D-Beaverton, said the move will keep the state’s coffers in balance and more fairly taxes businesses. “It feels like a very respon- sible move for our state in light of these changes,” Hass, the chairman of the Senate Finance and Revenue Committee, said in a committee hearing last week. Jared Walczak, a senior pol- icy analyst at the Tax Policy Foundation, said in written tes- timony to the Senate Finance and Revenue Committee last week that the case for eliminat- ing the 20 percent pass-through deduction was particularly strong in Oregon, “where pass- through businesses already receive the advantage of a sep- arate rate schedule.” In 2013, the Legislature passed a so-called “Grand Bar- gain” that included lower tax rates for certain pass-through businesses. Some of those changes would be repealed in the bill up for a vote today — for example, the bill would disqualify certain industries, including health care and pro- fessional services. Last week, Republicans on the Senate Finance and Reve- nue committee expressed con- cern about moving on the bill before the quarterly revenue forecast Friday. The Capital Bureau is a col- laboration between EO Media Group and Pamplin Media Group. SALEM — The state House voted along party lines Tuesday to ask voters to amend the state constitution to make access to cost-effective and affordable health care the right of all state residents. The proposal now heads to the Senate and, if passed, would stand on the November ballot. All 35 Democrats in the House voted for the mea- sure, while the 25 Republicans opposed it. State Rep. Mitch Green- lick, D-Portland, the bill’s chief sponsor, said in light of federal efforts to overturn the Affordable Care Act, it is important for Oregon voters to weigh in on whether they want health care to be accessible to everyone. The practical impact of cre- ating such a right is open to debate. House Speaker Tina Kotek and Majority Leader Jennifer Williamson, both Democrats from Portland, have said the measure is primarily “aspira- tional,” but some legal experts say adding the right to the con- stitution could spur litigation. “There is always a possibil- ity that the state could be sued for failing to follow a consti- tutional mandate, but we can- not say whether such a suit would be successful and, if so, what the maximum extent of the state’s liability would be,” Legislative Counsel Dex- ter Johnson wrote in a Mon- day opinion requested by Rep. Julie Parrish, R-West Linn. It also is “impossible to say whether the amendment would create a financial liability for the state” because the proposal doesn’t specify how the state must ensure every resident has access to health care, John- son wrote in a January opinion requested by Greenlick. “It is worth noting that the proposed amendment does not require the state to provide health care to every resident, but only to provide access to health care that is effective, medically appropriate and affordable,” Johnson wrote. The proposal raises the question of how the state will ensure that every resident has access and how it will define “cost effective” and “afford- able,” said Bruce Howell, a Portland-based health care attorney and adjunct professor at Salem’s Willamette Univer- sity law school. “The issue is going to be Sturgeon season possible this spring Limited catch considered By LUKE WHITTAKER Chinook Observer A limited catch-and-keep white sturgeon retention season similar to last year became possible following a public meeting Friday in Olympia, Washington. The Washington Fish and Wildlife Commis- sion decided to encour- age the state to begin discussions with Ore- gon fishery managers to develop a limited retention fishery in the Lower Colum- bia River. A presentation by Wash- ington Department of Fish and Wildlife staff showed that the number of adult stur- geon has increased in recent years, while the number of juvenile sturgeon has con- tinued to decline, according Alder and Maple Saw Logs & Standing Timber Northwest Hardwoods • Longview, WA Contact: John Anderson • 360-269-2500 Consult a PROFESSIONAL Q: Why should Jaime Valdez/Portland Tribune I start good hygiene habits? State Rep. Mitch Greenlick, D-Portland, is the chief sponsor of a ballot referral to amend the state constitution to make access to cost-effective and affordable health care a right. how are we going to make that work and what does that really mean?” he said. Oregonians who did not have access to cost-effective and affordable health care could sue the state, he said. In a letter to lawmakers this month, the nonpartisan League of Women Voters wrote that universal health care needs to be orchestrated at the national level; otherwise, Oregon would be responsible for all of the cost. “The state of Oregon has insufficient income to support its current responsibilities and cannot provide the added cost of health care coverage for all its residents at this time,” Warrenton reaches contract agreement with employees wrote Norman Turrill, the league’s president. message is clear: Practicing A: The proper dental care is important JEFFREY M. LEINASSAR DMD, FAGD Sweetheart Specials th Wednesday February 14 for Valentines Day OPEN 11am-9pm 503/325-0310 1414 MARINE DRIVE, ASTORIA www.smileastoria.com real doctors? • Caribbean Seared Halibut • Steamer Clams • Lobster Pasta • NY Strip Steak with Oysters • Cicillian Chicken Regular Dinner Menu Also Available City still in talks with police By KATIE FRANKOWICZ The Daily Astorian After lengthy negotiations, Warrenton and the union repre- senting general city employees have reached an agreement. City Manager Linda Eng- bretson is still negotiating con- tracts with the police depart- ment, however. Warrenton police officer Tyler Johnston, who is on the bargaining team, spoke during a City Commis- sion meeting Tuesday night. He said they are stuck on wages, lateral hiring, schedul- ing and compensation for cer- tain additional duties, among other items. “We really would just like a very amiable agreement that meets both the administra- tion’s needs, the city’s needs, as well as the workers’ needs,” he said. like all other doctors, A: Yes, we undergo four years of ASTORIA CHIROPRACTIC Barry Sears, D.C. 2935 Marine Drive Astoria, Oregon graduate school including two years of life science and 2 years of clinical sciences with an internship. The degree conferred after successful completion of schooling is a D.C. or DOCTOR OF CHIROPRACTIC. We are also called chiropractic physicians. Yearly continuing education is required to keep skills up. Our approach is to find the simplest solution with the fewest tests. We are happy to accept new patients. 503-738-7009 • 2427 S Roosevelt Hwy 101 South • Next to Motel 6 Q: What are ways of a Elks Lodge #180 Astori 15 ₀ th Anniversary Party om! Com e celebrate in many ways you might not have thought of before. Encourage your family to practice good oral hygiene by brushing after every meal with a fluoride toothpaste, floss daily and suing a mouth rinse to kill bacteria. You should also visit a dental profes- sional regularly for cleanings and the prevention and treatment of cavities. Doing so can protect more than just your teeth—it can save your life. Q: Are chiropractors Serving Dinner 3-9pm featuring... 503-325-3311 to be able to move forward and to continue to talk to the city and to get closer to a position that we believe is equitable to all members of our bargaining unit and for the city,” Johnston said. Engbretson reported sev- eral highlights about the con- tracts successfully negotiated, including a 2 percent cost of living adjustment and changes in the Public Works Depart- ment. Public works employ- ees who are required to be on call will see a slight increase in what they are paid, and, going forward, the department will have the ability to provide additional hours beyond its usual working hours of 7 a.m. to 3:30 p.m. Mayor Henry Balensifer thanked Engbretson for her “dedicated hard work.” “I think that we have made to a press release from the commission. “We’re already ahead of last year,” said Coho Char- ters owner Butch Smith, cit- ing an increasing number of adult sturgeon measured by fishery managers in Ore- gon and Washington state. “Hopefully, we’ll be getting a new season announced.” Fishery managers esti- mate the population of legal- size (38- to 54-inch) stur- geon on the Columbia River at around 199,000, an 18 percent increase from the 165,000 in May, according to a joint staff report issued by Washington state and Oregon in January. The latest figures support a trend of increasing numbers since 2012, encour- aging news for managers and anglers. Still considered to be an unhealthy total, the abun- dance of adult spawner-sized sturgeon has also increased from 5,950 in 2016 to 10,400 in 2017. WANTED Ballot referral making health care a right passes state House By PARIS ACHEN Capital Bureau Luke Whittaker/Chinook Observer The sturgeon season last year was a boon for local charter businesses. d 150 years of elk LEO FINZI your internet connection Astorias to A: get Use Netflix or Hulu for $7.99/ Best.com month, or Amazon Video, for Friday, February 16th 6:00pm “Pacific Rim” Lasagna & Cheese Bread Dinner $8 ~ Bingo $12 & up Open to the Public 453 11th Street, Astoria • More Info: 503-325-2806 watching TV with- out paying for cable or satellite? W e make affordable service calls to your home or business M-F 10-6 Sat . 11-4 77 11th Street, Suite H Astoria, OR 503-325-2300 $8.99/month and view movies, tv shows and original content available nowhere else. 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