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Entries in corporate kicker (3)

Tuesday
Oct162012

Tax Measures and Tax Reform

When Oregon voters receive their ballots this weekend, they will confront three very different tax measures, which could have an impact on the prospects of comprehensive tax reform in the state.

The ballot measures deal with prohibiting more real estate transfer fees, phasing out the estate tax and modifying the corporate income tax kicker. Proponents of comprehensive tax reform in Oregon worry the measures could remove issues from discussion that could sweeten a broader tax measure.

So far, none of the tax ballot measures has stirred much public debate, overshadowed by the higher profile and more costly fight over two measures to allow privately owned casinos in Oregon.

The three tax measures have received spotty editorial support. Measure 79, which would place a ban on future real estate transfer fees in the Oregon Constitution, has been called overkill since there already is a statutory ban in effect. Measure 84, which phases out the estate tax, has been questioned because there already is a $1 million estate exemption. Measure 85, which redirects corporate income tax kicker rebates to K-12 schools, has been criticized because it won't automatically mean more money for education.

Local government officials seem resigned that the constitutional ban on real estate transfer fees will pass, with financial backing by the National Association of Realtors. Washington County is the only Oregon municipality with a real estate transfer fee in place. While there weren't any nascent plans to challenge the statutory ban on such fees, some local officials have suggested the tool would be appropriate for capital projects such as restoring and modernizing county courthouses.

Backers of the estate tax repeal have branded their effort as ridding the state of a "death tax" that cripples family-owned small businesses. However, the Legislative Revenue Office estimates the repeal, when fully phased in, would result in an annual tax savings of $120 million, suggesting it would have a fairly limited impact.

Opponents of Measure 84 also have identified a potential flaw, which they say could create an unintended capital gains loophole.

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Monday
Aug132012

Time Short to Launch Tax Reform Debate

Governor Kitzhaber is talking privately about tax reform, but the time has come when conversations about what reform looks like must go public.Democratic Senator Ginny Burdick surprised many political observers when she came out against Our Oregon's proposed 2012 ballot measure directing all corporate kicker refunds to K-12 education. Our Oregon, the political arm of Oregon public employee unions, proceeded and successfully placed its initiative on the November ballot.

What was surprising is that Burdick had supported past Our Oregon proposals, such as Ballot Measures 66 and 67 in 2009 that raised income taxes on corporations and wealthy individuals. Burdick didn't criticize the substance of what Our Oregon was doing. She was unhappy because it wasn't a more comprehensive tax reform proposal. Burdick told Willamette Week, “All I can hope is, it doesn’t make the ballot. It will throw a monkey wrench into real financial reform.”

Burdick and other leaders believe only dealing with the corporate kicker will take the wind of out the sails of a larger discussion on restructuring Oregon's tax system, which relies heavily on income taxes that can sag when the economy tanks.

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Tuesday
Aug072012

Oregonians to Decide Nine Measures

Oregon voters will decide in November on three tax measures, two measures to allow privately owned casinos, legalization of marijuana and a ban on commercial gillnet fishing.  They also will get a chance to give the governor additional powers in the event of a catastrophic disaster.

None of the measures, at least so far, has touched a public nerve. But that could change after Labor Day and voters begin to pay attention to who and what is on the ballot.

A tight, well-funded presidential race should ensure good voter turnout, even though Oregon is usually lumped in with fairly certain blue states voting for President Obama. Some of the ballot measures that qualified for the Oregon ballot also could stir the political pot.

Legalizing personal cultivation and use of marijuana and hemp (Measure 80) will draw attention from the expected quarters. Oregonians have voted on marijuana and medical marijuana measures before, but this measure has a new twist — a government role in regulating commercial marijuana cultivation and sale. Think of the commission that would be created as a mini-Oregon Liquor Control Commission.

The pair of measures to legalize privately owned casinos and a casino in a former greyhound racetrack in Wood Village will get plenty of airplay. The Lake Oswego-based casino advocates have invested a lot of money to get Measures 82 and 83 on the ballot and can be expected to fund a robust campaign in their support. Indian casino operators, who worry that a Portland-area casino will siphon off their clientele, will mount strong opposition. The Oregon Lottery and its retailers have a similar fear. Also expect voices of concern from those who worry about making casino gambling even more accessible in the metropolitan area. Oregon voters rejected a similar measure in 2010.

By comparison, the proposed ban on commercial gillnet fishing (Measure 81) seems like inside baseball. If passed, it would disallow use of gillnets to catch salmon by non-tribal persons on the Columbia River, with exceptions in the Lower Columbia River. Commercial fishing interests aren't well-heeled and may be unable to tell its story to voters. Then again, the same may be true for the sponsors of the measure.

Tax measures can be headliners on any ballot, but maybe not so much this time. Measure 79, pushed by Oregon's real estate sector, would ban any new real estate transfer taxes or fees. Measure 84 would phase out the state's inheritance tax on large estates and all taxes imposed on intra-family property transfers. Measure 85, sponsored by Our Oregon, would redirect corporate income tax kicker refunds to support K-12 education.

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