Senate Democrats move to pass $1.3 billion tax increases on Oregon small businesses

Senate Democrats move to pass $1.3 billion tax increases on Oregon small businesses

 

SALEM, OR – Earlier this morning, the Democrat controlled Senate Committee on Finance and Revenue voted along party lines to pass SB 1528-a sweeping $1.3 billion tax increase for local small businesses.

The measure increases local small business taxes, including for sole proprietors, and nullifies certain federal small business tax cuts generated by the federal ‘Tax Cuts and Jobs Act’ to the tune of $210 million over the current biennium. Overall, the measure will increase local small businesses’ tax burden by more than $1.3 billion through 2023.

 

“It appears the Senate Democrats want to punish local Oregon mom and pop small businesses with higher taxes because they so hate the federal tax cuts received by large multi-national corporations.  The two are not connected,” said Sen Brian Boquist (R-Dallas), the Vice-Chair of the Finance and Revenue Committee. “I hope I am wrong, and look forward to local small businesses calling their Democrat Legislators to bring them back to their senses.”

 

The tax increases come well in advance of the official state revenue forecast next Friday, where lawmakers will be given valuable information on the status of the budget as well as a full analysis of how federal tax reform will impact Oregon’s finances.

 

“Right now, we have a lot of conflicting information coming in about the budget,” said Sen. Baertschiger (R-Grants Pass), a member of Finance and Revenue. “Some experts are telling me the federal tax cuts will net us more revenue, others are saying we’re going to have less. The point is, we just won’t know until next Friday. Raising taxes now is irresponsible; we didn’t have to do this. Requiring small businesses to bear the burden is a disgrace.”

 

Senate Democrats intend to bring the tax measures to the floor of the Oregon Senate for a vote sometime next week, well in advance of the revenue forecast scheduled next Friday. Despite Republican offers of cooperation after considering next week’s official revenue forecast, the Senate Democrats decided to charge ahead with tax increases before even knowing how to spend it all.