NORTHWEST
East Oregonian
Page 2A
Wednesday, February 22, 2017
In theory, new biz taxes could cover state budget shortfall
expected revenue for the upcoming
two-year budget cycle and what
is needed to fund state services
at current levels, according to the
Democratic chairs of the state legis-
lative budget-writing committee.
Prior to the start of the session
Republicans said that they’d be
willing to consider revenue reform in
exchange for cutting the costs of state
government. One target of their ire is
the state’s public pension system.
Legislators on the House Revenue
Committee — the chamber where
revenue-raising measures have to
start — spent last week and Monday
reviewing different types of taxes
that could, if passed, replace or alter
the current business tax structure.
Some of those taxes were
included in a Legislative Revenue
Office analysis of estimated revenue
from various types of taxes last
By CLAIRE WITHYCOMBE
Capital Bureau
SALEM — Certain types of state
business taxes could raise enough
additional revenue that match the
state’s projected budget shortfall of
nearly $1.8 billion, according to an
analysis from Oregon’s nonpartisan
Legislative Revenue Office.
But those estimates come with
serious caveats. They don’t take
into account behavioral responses
in the broader economy. They also
don’t account for other adjustments
to taxes that legislators could make
in exchange for instituting a new or
higher tax on business.
Those catches encapsulate the
challenge of crafting the state’s tax
policy, a political battle that’s taking
shape this session.
The shortfall is the gap between
week, which officials were quick to
say was not a policy proposal.
Revenue officers estimated that if
the Legislature increased the corpo-
rate income tax rate to 20 percent,
they could raise more than $2.8
billion in the 2017-19 budget cycle.
The state’s tax rate on corporate
income is currently whichever is
greater: a minimum tax on relative
sales or 6.6 percent tax on taxable
income, for companies making up
to $1 million, or 7.6 percent tax for
companies making more than that,
according to Business Oregon.
In the upcoming biennium, the
corporate income tax, at its current
rates, is projected to bring in about
$1.03 billion.
But, as Legislative Revenue
Officer Paul Warner told legislators
last week — in something of an
understatement — a 20 percent
The revenue office last week
also presented figures last week to
lawmakers on a business privilege
tax and a value-added tax.
A business privilege tax is consid-
ered an excise tax and levied on the
“privilege of doing business” in the
state.
Under the Legislative Revenue
Office’s analysis, estimates of
revenue that such a tax could bring
in range from $744 million to $2.8
billion in the upcoming biennium,
depending on the threshold for
inclusion.
Again, those estimates don’t
acknowledge what consequences the
institution of such a tax might have
on the economy or other changes
that legislators could make in combi-
nation with those changes, such as
eliminating the corporate income
tax.
corporate income tax would prob-
ably result in “some feedback” from
the business community.
The state’s general fund is largely
dependent on the income tax, which
generally swings up and down with
the economy. Some proponents of
revenue reform claim the amount
businesses contribute to the state’s
revenue pool is too little and has
shrunk in recent decades.
Corporate income taxes are one
subset of business taxes.
There’s a “menu” of options
available when it comes to business
taxes, says Warner, and states from
New Hampshire to Ohio have a
different array.
Each type of tax comes with
varying consequences in terms of the
state’s revenue volatility, administra-
tive complexity and prices on goods
and services.
Bill prohibits employers from firing Lessons learned in first Malheur trial
bear arms.
a one-off victory.
Central
to
the
conspiracy
“This is a case about
employees who use marijuana
charge is whether the what the defendants did with
By CONRAD WILSON
Oregon Public Broadcasting
By PARIS ACHEN
Capital Bureau
SALEM
—
Most
Oregon
employers
would lose the right to
fire employees or deny
employment to a candi-
date who uses marijuana
during non-work hours,
under a bill proposed by
lawmakers on the legisla-
tive marijuana regulation
committee.
The
controversial
legislation makes excep-
tions for certain industries
such as truck drivers,
federal contractors and
jobs covered by collective
bargaining agreements.
As a legal substance in
the state, marijuana should
be treated the same as
tobacco, proponents told
lawmakers during a public
hearing in the Senate Judi-
ciary Committee Tuesday.
“The goal with Senate
Bill 301 is to protect other
substances that are legal
under Oregon law from
being a cause of termina-
tion or not hiring people
for a particular job,” said
Beth Creighton, a Portland
employment attorney, who
has represented clients
who were fired for their
marijuana use. “Currently,
tobacco is protected, so if
you use tobacco offsite,
employers are not permited
to fire you because of that.
With the onset of legalized
marijuana,
marijuana
should not be treated any
differently.”
The bill still allows
employers
to
fire
employees who come to
work impaired, she noted.
“If you have somebody
falling down drunk in the
workplace, you don’t have
to keep them on duty. You
don’t have to keep them as
an employee,” Creighton
said. “You can still be
prohibited from coming to
the work impaired on any
kind of substance.”
Opponents
argued
such a law would violate
federal law on controlled
substances and would be
defeated in court.
Employers, including
cities and counties, argued
the bill also could put
employers at risk of litiga-
tion.
“I am not generally
averse to symbolic laws
that can’t be enforced.
Sometimes you want to
make a policy statement
even if it’s unenforceable,”
said Rob Bovett, legal
counsel for the Association
of Oregon Counties.
However,
the
bill
“would cost our members
… significant dollars to
Opening statements got
underway Tuesday for the
trial of the second group
of defendants charged in
connection with the 2016
armed occupation of the
Malheur National Wildlife
Refuge.
Speaking at the U.S.
District Courthouse in Port-
land, Assistant U.S. Attorney
Geoff Barrow told jurors the
case they were hearing was
simple.
He said it was “simple”
because for 41 days the
employees who worked at the
refuge near Burns, Oregon,
weren’t able to do their jobs.
Four defendants are on
trial this time: Duane Ehmer,
Jason Patrick, Darryl Thorn
and Jake Ryan. They’ve
been charged with felony
conspiracy. Three also face
felony weapons charges,
and all of the defendants are
accused of trespassing and
other misdemeanors.
Last year, a jury acquitted
Ammon Bundy and other
leaders of the occupation on
all federal felony charges
they faced.
This second trial matters
because it’s the final oppor-
tunity for the government to
prove their claims that laws
were broken during the occu-
pation. For the defense, it’s
the chance to show last fall’s
surprising acquittals weren’t
litigate and defend, and
ultimately, it is my strong
opinion, would all be
preempted (by federal
law),” Bovett said. “In this
case, we don’t want to see
a symbolic law put on the
books that would not be
enforceable but would cost
taxpayers money.”
Opponents said the bill
also needs to allow busi-
nesses that involve public
safety, including airline
pilots, railroad engineers
and schoolteachers, to
prohibit employees from
using marijuana on or off
work.
Portland
resident
Heather Kell, who has
a bachelor’s degree in
finance, said she lost a job
offer after she disclosed
that she was a medical
marijuana patient and
tested positive for THC,
the psychotic element of
marijuana.
“I feel that even though
it’s legal in the state of
Oregon, it’s awkward that
I have to share private
medical information,” Kell
told lawmakers during the
hearing. “I could no longer
work with the recruiting
agency, and I did not know
I would be precluded from
all future employment
through the recruiting
agency.”
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REGIONAL CITIES
Forecast
TODAY
FRIDAY
THURSDAY
Mostly cloudy
An afternoon snow
shower
41° 24°
38° 23°
SATURDAY
Mostly cloudy and
cold
Cold with clouds
and sun
PENDLETON TEMPERATURE FORECAST
39° 21°
39° 23°
38° 23°
HERMISTON TEMPERATURE FORECAST
41° 22°
45° 24°
PENDLETON
through 3 p.m. yesterday
TEMPERATURE
HIGH
LOW
41°
48°
69° (1988)
35°
30°
2° (1894)
PRECIPITATION
24 hours ending 3 p.m.
Month to date
Normal month to date
Year to date
Last year to date
Normal year to date
0.40"
1.81"
0.86"
3.46"
2.33"
2.24"
HERMISTON
through 3 p.m. yesterday
TEMPERATURE
HIGH
Yesterday
Normals
Records
LOW
42°
50°
75° (1995)
39°
30°
9° (1957)
PRECIPITATION
24 hours ending 3 p.m.
Month to date
Normal month to date
Year to date
Last year to date
Normal year to date
0.56"
1.55"
0.72"
3.24"
1.44"
2.00"
SUN AND MOON
Sunrise today
Sunset tonight
Moonrise today
Moonset today
New
First
Feb 26
Mar 5
43° 22°
41° 27°
Seattle
47/32
ALMANAC
Yesterday
Normals
Records
43° 22°
Full
6:46 a.m.
5:32 p.m.
4:09 a.m.
1:47 p.m.
Last
Mar 12
Mar 20
Today
SUNDAY
Sun followed by
clouds and cold
Spokane
Wenatchee
38/20
39/21
Tacoma
Moses
47/27
Lake
Pullman
Aberdeen Olympia
Yakima 41/21
38/23
47/31
47/28
44/22
Longview
Kennewick Walla Walla
48/31
44/26 Lewiston
47/25
Astoria
45/27
46/32
Portland
Enterprise
Hermiston
45/32
Pendleton 35/17
The Dalles 45/24
41/24
46/28
La Grande
Salem
40/21
47/31
Albany
Corvallis 45/31
47/30
John Day
34/19
Ontario
Eugene
Bend
41/25
45/30
36/19
Caldwell
Burns
44/24
34/14
Astoria
Baker City
Bend
Brookings
Burns
Enterprise
Eugene
Heppner
Hermiston
John Day
Klamath Falls
La Grande
Meacham
Medford
Newport
North Bend
Ontario
Pasco
Pendleton
Portland
Redmond
Salem
Spokane
Ukiah
Vancouver
Walla Walla
Yakima
Hi
46
39
36
46
34
35
45
38
45
34
35
40
33
45
45
48
41
46
41
45
39
47
38
35
48
44
44
Lo
32
18
19
34
14
17
30
22
24
19
17
21
17
28
33
35
25
24
24
32
23
31
20
18
29
26
22
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c
c
c
sf
c
c
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pc
c
sh
sf
sh
sf
c
sh
c
c
Hi
46
35
34
45
29
31
45
36
41
30
33
35
29
46
45
48
39
43
38
43
37
45
35
32
43
39
43
Today
Beijing
Hong Kong
Jerusalem
London
Mexico City
Moscow
Paris
Rome
Seoul
Sydney
Tokyo
Lo
24
63
41
49
47
14
45
48
25
69
49
W
s
t
pc
sh
s
sn
c
pc
sn
s
pc
Lo
32
11
16
35
7
9
31
18
22
13
15
16
13
28
35
36
20
23
23
28
19
30
18
13
31
25
20
W
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pc
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c
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Thu.
Hi
48
68
57
51
78
33
53
59
35
84
63
(in mph)
Klamath Falls
35/17
Boardman
Pendleton
Lo
26
54
41
38
43
30
38
49
20
69
39
W
s
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r
REGIONAL FORECAST
Coastal Oregon: Periods of rain today;
chilly. Mostly cloudy tonight with spotty
showers; chilly.
Eastern and Central Oregon: Cloudy today;
a rain or snow shower in spots in the south
and near the Cascades.
Western Washington: Mostly cloudy today
with a brief shower or two.
Eastern Washington: Mostly cloudy today;
a snow shower near the Idaho border and in
the mountains.
Cascades: Snow today, accumulating 1-2
inches in the south and central parts and up
to an inch across the north.
Northern California: A shower in spots to-
day; however, snow showers in the interior
mountains.
Today
Thursday
WSW 4-8
W 6-12
W 4-8
W 4-8
UV INDEX TODAY
Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.
0
1
2
1
0
NEWS
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Shown are noon positions of weather systems and precipitation. Temperature bands are highs for the day.
WORLD CITIES
Hi
49
75
55
56
77
32
53
60
38
82
53
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NATIONAL WEATHER TODAY
Thu.
WINDS
Medford
45/28
Corrections
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those firearms,” Barrow
said, adding that they kept
employees from doing their
jobs.
“We will ask you to find
the defendants guilty as
charged,” he said.
Andrew Kohlmetz, the
standby counsel for defen-
dant Patrick, said during his
opening statements there was
no conspiracy.
Kohlmetz told a circuitous
story about the lead up to
the occupation and how his
client, a roofer who lost his
business during the Great
Recession, got involved.
“You’ll hear evidence
that they didn’t want another
Ruby Ridge, they didn’t want
another Waco,” he said.
Kohlmetz said the case is,
at least in part, about “who
should decide what happens
in our remote and rural coun-
ties.”
“There’s no conspiracy
to impede these federal
workers,” he said.
Other defense lawyers
will likely make similar
comments during their
opening statements before
the jury Tuesday afternoon.
defendants taking over the
refuge intended to prevent
employees from doing their
jobs. It is that component of
the charge the government
must prove if they’re to
prevail.
Barrow told jurors they
would hear about people
who aren’t in the courtroom
or on trial, but all the same
were linked to the armed
occupation.
“Your focus must remain
on the men in this room and
the evidence we bring against
them,” he said.
Barrow said the defen-
dants “demonstrated their
determination and resolve to
keep the [refuge] employees
from returning to work.”
In his remarks, Barrow
seemed to directly address
issues jurors in the first trial
raised about the government’s
failure to prove the intent of
the alleged conspiracy.
Barrow told jurors the
defendants haven’t been
charged because of their
beliefs, but rather, he said,
because of what they’ve done.
He also stressed the case isn’t
about a constitutional right to
0
8 a.m. 10 a.m. Noon 2 p.m. 4 p.m. 6 p.m.
0-2, Low
3-5, Moderate 6-7, High;
8-10, Very High;
11+, Extreme
The higher the AccuWeather.com UV Index™ num-
ber, the greater the need for eye and skin protection.
Forecasts and graphics provided by
AccuWeather, Inc. ©2017
-10s
-0s
showers t-storms
0s
10s
rain
20s
flurries
30s
40s
snow
ice
50s
60s
cold front
70s
80s
90s
100s
warm front stationary front
110s
high
low
National Summary: Locally heavy showers and thunderstorms will occur from Florida to
the Carolinas today. Areas of rain and mountain snow will be scattered over the West. Most
other areas will be sunny and unusually warm.
Yesterday’s National Extremes: (for the 48 contiguous states)
High 94° in McAllen, Texas
Low -10° in Clayton Lake, Maine
NATIONAL CITIES
Today
Albuquerque
Atlanta
Atlantic City
Baltimore
Billings
Birmingham
Boise
Boston
Charleston, SC
Charleston, WV
Chicago
Cleveland
Dallas
Denver
Detroit
El Paso
Fairbanks
Fargo
Honolulu
Houston
Indianapolis
Jacksonville
Kansas City
Las Vegas
Little Rock
Los Angeles
Hi
68
72
64
66
45
73
44
52
76
64
70
65
82
63
65
80
11
41
80
80
70
75
76
64
74
64
Lo
43
59
51
48
26
57
25
40
58
53
48
56
55
25
52
53
-6
24
69
56
55
61
45
42
52
46
W
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c
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Thur.
Hi
59
76
65
73
33
76
38
65
78
73
54
67
86
44
65
73
13
34
79
80
71
77
69
56
80
63
Lo
29
58
51
52
21
59
22
46
58
55
42
52
53
16
48
43
7
22
67
59
58
59
43
38
56
45
W
pc
pc
s
pc
sn
pc
pc
pc
pc
c
r
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Today
Louisville
Memphis
Miami
Milwaukee
Minneapolis
Nashville
New Orleans
New York City
Oklahoma City
Omaha
Philadelphia
Phoenix
Portland, ME
Providence
Raleigh
Rapid City
Reno
Sacramento
St. Louis
Salt Lake City
San Diego
San Francisco
Seattle
Tucson
Washington, DC
Wichita
Hi
70
75
74
66
58
73
74
58
78
71
63
78
45
53
72
54
40
58
77
43
62
56
47
81
66
76
Lo
58
56
61
45
36
56
56
48
50
37
50
49
31
39
53
26
22
34
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30
51
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Thur.
Hi
73
79
79
49
45
75
77
68
82
51
72
65
48
65
79
29
35
54
74
36
61
55
44
67
74
75
Lo
61
60
63
40
28
60
59
52
39
32
55
42
36
44
53
18
19
32
60
23
48
41
32
36
56
34
Weather (W): s-sunny, pc-partly cloudy, c-cloudy, sh-showers, t-thunderstorms, r-rain,
sf-snow flurries, sn-snow, i-ice.
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