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Senator Doug Whitsett
R- Klamath Falls, District 28

Phone: 503-986-1728    900 Court St. NE, S-302, Salem Oregon 97301
Email: sen.dougwhitsett@state.or.us     Website: http://www.leg.state.or.us/whitsett
Media Advisory                         June 8, 2009 


Democrats prepare for historic Billion Dollar Tax Week

Over next five days, Democrats will squeeze $1.129 billion out of Oregon employers and families

Salem, OR – This week will see the legislature vote on more than one billion dollars in new taxes, primarily targeted at Oregon small and family businesses.  These taxes are being heralded as job killers, resulting in an immediate loss of more than 5,000 jobs and discouraging future Oregon businesses from locating to Oregon.  Oregon currently has the second highest unemployment rate in the nation.

“This week Democrats will vote to continue a pattern of excessive spending on the backs of Oregon small and family owned businesses with one of the largest combined tax increases in Oregon history,” said Senator Ted Ferrioli (R-John Day).  “When the dust settles at the end of this week, employers will have to start preparing to extract over a billion dollars from their businesses.  It doesn’t take an economist to know that this will mean a significant slowdown in Oregon’s economy.” 

Democrats are poised to force three different tax raising bills to the House and Senate floors this week:

  •         HB 2116 C – Creates a brand new tax on insurance premiums for small businesses and individual purchasers, and increases the tax rate imposed on hospitals.  Total raised:  $396.5 million.
  •         HB 3405 A – Increases the tax on Oregon businesses for the “privilege” of doing business in Oregon and increases the overall tax rate on Oregon corporations.  Total raised: $261 million.
  •         HB 2649 A – Creates two brand new, highest-in-the-nation tax brackets at 10.8% and 11%.  More than 70% of the individuals paying this tax will be small and family owned businesses.  Total raised: $472 million.

Attached is a detailed breakdown of each bill.

“While most states are talking about how to protect businesses and attract more employers, Democrats are brazenly adopting tax policy that will choke the life out of private sector jobs,” said Ferrioli.  “Republicans have a proposed a budget that pays for important priorities without raising taxes.  This relentless pursuit of tax increases is unfair, unnecessary and foolish.”

Republicans proposed a Back to Basics Budget in May that outlines a way to pay for Oregon’s most important priorities without increasing taxes. 

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              Page Updated: Sunday June 14, 2009 03:43 AM  Pacific

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