On January 26, Oregonians will make a choice that will help set a long term direction for our State. We should choose to invest in our people; this is why I am urging you to vote YES on ballot measures 66 and 67.
90% of the state general fund goes to education, health and public safety. This money comes from the state income tax. The problem with this tax is that it is very volatile during hard times. The current deep recession opened up a 4 billion dollar budget gap. That is 20% of the cost of these programs. It is like getting a 20% pay cut. This level of reduction would have been devastating to these programs.
The legislature decided to fix this gap using a shared solution. Half in cuts, half in revenue increases. 2 billion has been cut from the current budget, and the impact has been felt all over the state. Sherwood schools lost 7% of its operating budget last year.
The other 2 billion is being raised in new revenue. 60% of this consists of money from the federal economic stimulus and a small rainy day fund that we already have in Oregon. The other 40% comes from two tax increases, which are now on the ballot for the January 26th vote.
These taxes increase the corporate minimum tax, and increase the tax rate on households making over $250,000 a year. The current corporate minimum tax is $10 a year, this hasn’t changed since 1931, and 2/3rd of corporations doing business in our state pay just this minimum. Oregon currently has the 3rd lowest corporate income taxes in the nation, with these changes we will now be the 5th lowest. Overall 88% of small business and 97% of households will see no changes in their taxes from these measures. These measures are targeted to those best able to pay.
About half of these tax increases will expire in two years, after the recession is over. The other half will remain in place to help create a more fair tax system in our state and to help refill our small rainy day fund. Currently the wealthiest households in Oregon pay the same tax rate as a family making just $30,000 a year. These reforms create a fairer, more progressive tax system that limits the burden on middle class families. Despite this, a well-funded opposition effort has formed to repeal these reforms.
The anti-tax groups opposed to these measures have been able to raise over 1 million dollars to defeat these measures. That’s 10 times what the YES campaign has raised. The opponents will be able to blanket the airwaves with misleading messages calling these reforms jobs killing. One ad claims that over 70,000 jobs will be lost with these taxes. In fact, the non-partisan Legislative Revenue Office released a report on the measures, showing that raising taxes on corporations and the richest households is better for Oregon’s economy than cutting education, health care and public safety. That finding was echoed by an open letter from three dozen prominent Oregon economists.
These measures will keep hundreds of millions of dollars circulating in the economy, helping small business and protecting jobs by increasing demand. That is what is needed during a recession. In addition, these measures provide a tax cut to 270,000 unemployed Oregonians, the very people who need it the most.
The failure of these measures will mean another 6% loss to the operating budget in our Sherwood schools. Fortunately for us, the Sherwood school system is very well run and they have created their own rainy day fund. Sherwood has not had to lay off teachers like our neighboring school districts have had to do. But a loss in January will drain our reserve dry, and we will be left vulnerable.
Going forward, we need to build a permanent larger rainy day fund where we save during the good times so that we do not have to make cuts and raise taxes during the bad times. The failure of these measures will take the air out of this effort and lock the boom and bust status quo cycle in place for another 10 years.
The legislature choose to share the burden and not balance the budget solely on the backs of our kids, the sick and the vulnerable. They went out on a limb to do this, we need to send the message that investing in our people is always the right decision in Oregon, and that it can be defended at the ballot box. Please vote YES in January on Measures 66 and 67.
On January 26, Oregonians will make a choice that will help set a long term direction for our State. We should choose to invest in our people; this is why I am urging you to vote YES on ballot measures 66 and 67.
90% of the state general fund goes to education, health and public safety. This money comes from the state income tax. The problem with this tax is that it is very volatile during hard times. The current deep recession opened up a 4 billion dollar budget gap. That is 20% of the cost of these programs. It is like getting a 20% pay cut. This level of reduction would have been devastating to these programs.
The legislature decided to fix this gap using a shared solution. Half in cuts, half in revenue increases. 2 billion has been cut from the current budget, and the impact has been felt all over the state. Sherwood schools lost 7% of its operating budget last year.
The other 2 billion is being raised in new revenue. 60% of this consists of money from the federal economic stimulus and a small rainy day fund that we already have in Oregon. The other 40% comes from two tax increases, which are now on the ballot for the January 26th vote.
These taxes increase the corporate minimum tax, and increase the tax rate on households making over $250,000 a year. The current corporate minimum tax is $10 a year, this hasn’t changed since 1931, and 2/3rd of corporations doing business in our state pay just this minimum. Oregon currently has the 3rd lowest corporate income taxes in the nation, with these changes we will now be the 5th lowest. Overall 88% of small business and 97% of households will see no changes in their taxes from these measures. These measures are targeted to those best able to pay.
About half of these tax increases will expire in two years, after the recession is over. The other half will remain in place to help create a more fair tax system in our state and to help refill our small rainy day fund. Currently the wealthiest households in Oregon pay the same tax rate as a family making just $30,000 a year. These reforms create a fairer, more progressive tax system that limits the burden on middle class families. Despite this, a well-funded opposition effort has formed to repeal these reforms.
The anti-tax groups opposed to these measures have been able to raise over 1 million dollars to defeat these measures. That’s 10 times what the YES campaign has raised. The opponents will be able to blanket the airwaves with misleading messages calling these reforms jobs killing. One ad claims that over 70,000 jobs will be lost with these taxes. In fact, the non-partisan Legislative Revenue Office released a report on the measures, showing that raising taxes on corporations and the richest households is better for Oregon’s economy than cutting education, health care and public safety. That finding was echoed by an open letter from three dozen prominent Oregon economists.
These measures will keep hundreds of millions of dollars circulating in the economy, helping small business and protecting jobs by increasing demand. That is what is needed during a recession. In addition, these measures provide a tax cut to 270,000 unemployed Oregonians, the very people who need it the most.
The failure of these measures will mean another 6% loss to the operating budget in our Sherwood schools. Fortunately for us, the Sherwood school system is very well run and they have created their own rainy day fund. Sherwood has not had to lay off teachers like our neighboring school districts have had to do. But a loss in January will drain our reserve dry, and we will be left vulnerable.
Going forward, we need to build a permanent larger rainy day fund where we save during the good times so that we do not have to make cuts and raise taxes during the bad times. The failure of these measures will take the air out of this effort and lock the boom and bust status quo cycle in place for another 10 years.
The legislature choose to share the burden and not balance the budget solely on the backs of our kids, the sick and the vulnerable. They went out on a limb to do this, we need to send the message that investing in our people is always the right decision in Oregon, and that it can be defended at the ballot box. Please vote YES in January on Measures 66 and 67.