Oregon’s Tax Fairness Measures—Get the Facts

Real People

About 11 years ago, 69-year-old Robert “Bob” Joyce of Portland was suddenly and seriously injured in a car accident, resulting in both cognitive and physical impairments. Through Oregon’s innovative home and community-based care system for seniors and people with disabilities, Joyce, a former clinical psychologist, is able to receive a few hours of assistance each week and a case manager who ensures that his essential needs are met. These minimum supports help ensure that he can stay in his own home, where survey after survey shows 90 percent of Americans want to be able to age.

Joyce’s basic in-home care is just one example of the essential services at stake if two tax fairness measures the Oregon Legislature passed are overturned. Other services are education, public safety and health care, which make up 93 percent of Oregon’s budget.

Balancing Oregon’s Budget—A Shared Responsibility and Fair Approach

Faced with $4.2 billion deficit and severe economic crisis fueled by growing unemployment, state lawmakers passed a budget that worked to ensure a balanced approach and shared responsibility.

They made $2 billion in cuts, increased efficiencies, leveraged $1 billion in temporary federal stimulus matching funds, and raised $733 million in revenue from corporations (by increasing the outdated $10 corporate minimum income tax and raising the tax rate on profits from profitable corporations) and Oregonians making over $250,000 a year for married couples or $125,000 for individuals).

Real Consequences

Some corporations and special interest groups are now trying to repeal parts of this package by gathering signatures to force a statewide election. They have until Sept. 25 to collect 55,179 signatures on each measure. If they gather enough valid signatures, the election will be held on Jan. 26, 2010.

“Without this additional revenue, core services will need to be cut even further, signaling deep trouble for Oregon’s schools, seniors, families, communities and our economy,” said Jerry Cohen, State Director for AARP Oregon. “Together, we’ve got to get and keep Oregon working—in terms of both quality of life and economic activity.”

Adds Cohen, Bob Joyce’s story sadly illustrates to the short-sighted and costly consequences of such a repeal and the additional service cuts that will be necessary.

“Bob Joyce will almost surely be caught in the middle. Rather than living in his own home with minimal supports, he will probably be forced to seek out more costly facility-based care, forgoing his personal choice as well as his independence and likely costing the state far more. That just doesn’t make sense.”

And Otto Schell, Oregon PTA’s Director of Legislative Activities, said the impact would likely be devastating for Oregon’s schools and students, causing painful program cuts, larger classroom sizes and significant teacher layoffs.

“Ensuring adequate funding for Oregon’s schools is fundamentally tied to our state’s future,” Schell said. “We just can’t afford to go backwards.”

Getting the Facts Vital

AARP Oregon and Oregon PTA urge Oregonians of all ages to get the facts about the measures before signing a petition or voting.

The plan:

• Raises marginal tax rate on income over $125,000 for individuals and $250,000 for households to 10.8 percent (until 2012, when it drops to 9.9 percent). Note: The increased rate is only on income above $125,000, not on all income
• Raises marginal tax rate on income over $250,000 for individuals and $500,000 for households to 11 percent (until 2012, when it drops to 9.9 percent). Note: The increased rate is only on income above $250,000, not on all income
• Has no impact on the personal taxes of 97.5 percent of taxpayers
• Replaces outdated $10 corporate minimum (unchanged since 1931) with a sliding rate equal to one-tenth of one percent of Oregon sales. New minimum set at $150, capped at $100,000
• Raises tax on corporate profits over $250,000 to 7.9 percent (until 2011, when it drops to 7.6 percent)

Read and learn more at www.defendoregon.org.