Oregon tax system

Tax Reform, Affordable Housing Top Readers’ 2016 Policy Priority List

Affordable housing is top of mind for many Oregonians heading into 2016. In September, Mayor Charlie Hales declared Portland had fallen into a housing crisis. The announcement helped set the stage for difficult state-level discussions about how to solve the problem. 

Affordable housing is top of mind for many Oregonians heading into 2016. In September, Mayor Charlie Hales declared Portland had fallen into a housing crisis. The announcement helped set the stage for difficult state-level discussions about how to solve the problem. 

We asked about top 2016 policy priorities, and you answered. The two most mentioned policy priorities were tax reform and affordable housing. A transportation funding plan and changes to the Public Employee Retirement System (PERS) also drew mentions.

As expected, when we asked about leadership, most comments zeroed in on Governor Kate Brown and her role in making needed changes, even as she faces election this November to complete the last two year’s of John Kitzhaber’s term.

Here are some highlights from what you told us.

Tax Reform

Jan Lee, a former state representative from Clackamas County and lobbyist, said it’s again time to explore a sales tax in Oregon. “We need a sales tax with some compensating features to reduce income or property tax a bit so that we have a system that fares better in all economic climes,” Lee says. 

While Oregon’s employment figures have shown strong growth over the past year, incomes have largely remained stagnant. But Lee believes changing the state’s tax system while raising the minimum wage could be enough to spur creation of higher paying jobs across the income spectrum.  

“The legislature can raise the minimum wage; if not one of this fall's ballot measures can achieve that result,” she says. “Maybe instead of some of the other tax credits now made available, there could be more tax breaks that businesses can earn by providing higher paying blue collar and white collar jobs to drive our economy and meet families' needs.”

“As always, close coordination with the Governor's office and open communication between the two party caucuses sets up a better opportunity for leadership to bring people together,” Lee explains. “Consensus is not expected, but achieving a little higher majority on important issues makes the system more workable.”

Tom Wilson, vice president of Campbell & Company, said it’s time to put the clean fuels bill approved during the 2015 Oregon legislative session and a proposed 10-cent per gallon gas tax back on the table. That’s just the start of a series of changes Wilson envisions for Oregon’s tax system, which he says will require top-down leadership.

“Governor Brown needs to lead the charge on this by reminding all the Multnomah County Democrats and Tina (Kotek) that there is actually another part of Oregon that needs to be served,” Wilson says. “Start to fix PERs by requiring members to contribute to their retirement like the rest so do. Do not allow the unions to jam through another tax on corporations.”

Affordable Housing

Four months ago, Mayor Charlie Hales declared a housing crisis in Portland, and news stories continue to surface about Oregonians struggling to keep up with skyrocketing rents and day-to-day housing costs. So, it’s no surprise that affordable housing is top of mind.  

Chris Vetter of  the Vetter Group and Don Mazziotti,  the former head of the Portland Development Commission and now a Portland-based management consultant, listed housing as their primary concern for Oregon in 2016.

“We need more affordable apartments and opportunities for urban professionals,” Vetter says.

Mazziotti says Oregon lawmakers should focus on easing the financial burden on homeowners and renters across the state.  

Jim Standring, president of Tigard-based Westland Industries, took another angle, suggesting lawmakers approach the affordable housing crisis with an eye toward improving Oregon’s land-use laws. 

“Oregon's land use system is totally broken and needs significant change,” Standring says. “Concerns about affordability and homeownership will continue to suffer without these changes.”

We hope you will keep talking to us about the priorities you want addresses in Oregon. We’re listening. 

Justin Runquist is CFM’s communications counsel. He is a former reporter for The Oregonian, The Columbian and The Spokesman-Review. Away from the office, he’s a baseball fanatic with foolhardy hopes that the Mariners will go to the World Series someday. You can reach Justin at justinr@cfmpdx.com and follow him on Twitter at @_JustinRunquist

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.