Raising taxes necessary for Oregon's health

June 8, 5:01 PMPortland Progressive ExaminerMichael Stone

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Raising income taxes on Oregon's higher-income residents and corporations are necessary for Oregon's health. The new taxes will help pay for schools, prisons and human services programs. The majority of state Democrats said the proposed increases would bring fairness to the state's tax code and help balance the state budget that has been hit by the recession.

Oregon is in trouble. We are facing massive budget gaps. If we do nothing, the state will have to lay off thousands and undertake deep, painful cuts to schools, the disabled and seniors, state troopers, economic development budgets, courts, parks, prisons -- every agency and program Oregonians depend on.

Times are tough, and we all understand the need for shared sacrifices -- including sensible cuts across all sectors. However, corporations and the wealthiest Oregonians must also pitch in and shoulder a reasonable share of the burden. We won’t have to endure such deep crippling cuts to our most basic public services if we require corporations and the wealthy to pay their fair share.

Oregon has shifted the responsibility for taxes away from corporations and onto individual taxpayers and small businesses over the last 30 years. The corporate share of total state income taxes has dropped more than 60%.

Fair tax reform means that corporations pay more. Meaningful reform requires a substantial increase in Oregon’s corporate tax collections, not just a small increase in the $10 minimum, which is what two-thirds of C corporations operating in Oregon now pay.

In addition, wealthy Oregonians should pay their fair share. The wealthiest Oregonians have paid more in other economic crisis situations. The top tax rate was raised to 10.8% during the 1980’s economic crisis. Today, working class families and the very rich pay the same marginal tax rate – 9%. Is this fair? Should working class people pay the same percentage of income as the wealthiest Oregonians?

Regardless, Democrats hold a "supermajority" of seats in the House, meaning they don't need any Republican votes to pass the tax hikes. However, anti-tax increase groups say they likely will mount a referral campaign to put one or both of the tax hikes to statewide vote.

Oregonians should do the right thing - support the tax increase on corporations and the wealthy, it is time everyone paid their fair share.