Oregonian Senate Democrats Vote to Protect State's Right to Set Tax Policy

Disconnecting from federal tax code will save at least $80 million in state revenue.

(SALEM, Ore.) - In the face of a potential $3 billion budget shortfall over the next 28 months, the Oregon State Senate today voted to protect the state’s right to determine its own tax policy by “disconnecting” from the federal tax code.

“Our goal is to craft tax policy that makes sense for Oregon and her citizens rather than having our destiny determined by the national goals set in Washington,” said Senator Ginny Burdick (D-Portland), chair of the Senate Finance and Revenue Committee.

“Unlike Congress we have to balance our budget and this measure today will give us the tools to do that sensibly rather than in response to federal mandates.”

The measure will prevent an additional $80 to $100 million reduction in state revenues, while leaving open the option of adopting some or all of the changes in the federal tax code.

“When we are facing a massive budget shortfall, my question for opponents of this measure is: ‘Where do you want to make $80 million in additional cuts?’” asked Senate Ways and Means Committee Co-Chair Margaret Carter, (D-Portland).

“Do you want to take that money out of education? Health care? Human services? Public safety?”

The move will have no effect on federal tax cuts contained in the American Recovery and Reinvestment Act.

“Oregonians will receive every dime of the federal tax cuts included in Congressional stimulus package,” said Senate Majority Leader Richard Devlin (D-Tualatin).

“This measure simply allows the Oregon Legislature to determine state tax policy rather than having it dictated to us by Washington.”

For example, Devlin said Oregonian families making less than $200,000 would receive the much talked about “Making Work Pay” tax cut – an $800 federal income tax reduction which will show up in their paychecks in the form of lower withholding. More than 40,000 Oregon families will also be eligible for a $2,500 college tuition tax credit included in the federal stimulus package.

Oregon lawmakers can’t raise or lower federal taxes, but federal tax laws do play a part in determining taxable income under Oregon law.

“It is complicated and I guess it’s understandable that some people might get confused,” Devlin said. “It should be made abundantly clear, however, that nothing we have done here today will raise anyone’s taxes. Any claims to the contrary are just attempts to mislead the public.”

The Senate Majority Leader said lawmakers will closely examine how each measure in the federal stimulus package will affect Oregonians before determining which measures to reconnect to later in the session.

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jan February 27, 2009 10:24 am (Pacific time)

Oregonians need to understand that we have not been paying enough taxes to cover our expenses!!! Now state workers get a literal tax increase to cover all of the other citizens who fight to avoid paying their fair share. Call it what it is. When you make employees of the state take mandatory leave to cover a budget, THAT IS A TARGETED TAX INCREASE TO STATE WORKERS.

Henry Ruark February 15, 2009 9:02 am (Pacific time)

Chris: Yr link re states claiming sovereigity checks out to show ONLY bills or other actions seeking that radical action by those fighting same old battle concluded while Constitution was being debated, with current setup changed intermittently ever since via Constitutonal action AND strongly further nailed down by Civil War. NO state on record yet, that I can find, with actual vote by state population to again Secede from Union, which is what yours implies. SO produce checkable record rather than propaganda-site, if you can !!

Henry Ruark February 13, 2009 4:43 pm (Pacific time)

"Anon": You wrote: "...those who choose not to seek gainful employment when they are physically/mentally capable." Please cite source documentation for any proof you hold that the number is more than miniscule. Otherwise you simply beatin' gums with old-stuff from Reagan era, like "welfare mother driving white Cadillac" to collect her govt. check. With millions now losing jobs snatched away by trends beyond their control, yours is implicit "insult" (!) to them. One can see why you choose to write such s... anonymously. Such socially inciting distortion is abuse of First Amendment, unworthy of anyone seeking any solution to now dangerous situation leading to Second American Revolution if perverted far enough by our failure to comprehend and cope rationally, reasonably, rapidly and in decent depth for all involved.

ChrisJones February 13, 2009 10:40 am (Pacific time)

Freedom to Fascism: by Aaron Russo, producer of the Rose and Trading Places with eddie murphy and dan aykroyd. from wikipedia: The film spends a fair amount of time examining the Federal Reserve System, including its genesis and functions. The film asserts that the Federal Reserve System is a system of privately held, for profit corporations, not a government agency, and was commissioned to print fiat money on behalf of the federal government, at a fee ultimately paid for by the personal income tax (through service on bond interest). The film also refers to the fact that the United States dollar is not backed by gold, and claims that this means the dollar has no real backing other than future income tax payments. Consequently, the film proposes, Federal Reserve Notes represent debt instead of wealth....link to full movie found @ http://video.google.com/videoplay?docid=5355374476580235299

ChrisJones February 12, 2009 8:10 pm (Pacific time)

I want to know when Oregon is going to join the other 21 states declaring sovereignty. "see links to all the different bills on this page"--21 States Claiming Sovereignty--Ernest Hancock Freedom’s Phoenix February 12, 2009 21 States Claiming Sovereignty: AZ, AL, AK, AR, CA, CO, GA, HI, ID, IN, KS, ME, MI, MO, MT, NH, NV, OK, PA, TX, and WA...Wow… it will be interesting to see how this turns out… it’s about time people started stepping up and speaking out. As people have pointed out in comments, all of these (except for HI) are explicit restatements of what has always been in place...cont'd @ http://www.infowars.com/21-states-claiming-sovereignty/

Henry Ruark February 12, 2009 7:33 pm (Pacific time)

Chris: It is professional protocol to give source for film, even when well-known. Never heard of this one, so plese ID for me to check personal sources who still produce major media, for reputation and background while using your source for full description. Twice-around is protocol for solid check on such media. Yr link given elsewhere came back as erroneous; use more care or repeat when asked, as twice here today. IF you wish crediblity, earn it by making sure others can check your named sources. Mine fully open to anyone with rationality enough to ID completely so I know otherwise masked-man at my door...

Snoozer February 12, 2009 6:28 pm (Pacific time)

Ummm... Oregon needs to get on the ball and cut taxes AND spending by at least 30%.

Anonymous February 12, 2009 5:47 pm (Pacific time)

I am with you Chris

Anonymous February 12, 2009 5:39 pm (Pacific time)

So those making over $200,000 a year not only get taxed at higher rates both on a federal and state level but also pay for those who choose not to seek gainful employment when they are physically/mentally capable. Even if you're making just $200,000 a year your take home is severely reduced by taxes/fees that many are simply going to quit purchasing services that keep many locals employed in a wide variety of occupations. When you have several kids, $200,000 is gone very quickly. It's not a lot of money in todays world.

ChrisJones February 12, 2009 5:17 pm (Pacific time)

Can we pass a law to stop paying the fraudulent federal income tax (refer to movie: FREEDOM TO FASCISM by aaron russo) now so we can take care of our own beloved state of Oregon and protect it's sovereignty?? I would love to see our economy reap the massive benefits of such a move. Oregon could lead the way in a true trailblazing fashion to solid prosperity unmatched by any other state in the union. That would be amazing.

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