A Tax Deal on the Horizon?
A new tax deal being discussed might give Oregon businesses hope for a stable reserve fund, state spending limits, and a cut in the capital gains tax rate. Senators Frank Morse (R-Albany) and Ginny Burdick (D-Portland) have introduced SJR 26, which mandates that the Legislature fund a Rainy Day Fund from two different sources – up to 3% of General Fund revenues and half of the personal kicker.
The measure would also re-direct the corporate kicker into a permanent savings account dedicated to Oregon’s higher education system.
There is also consideration of including permanent capital gains tax relief as part of the package.
Most business groups, including AOI, are willing to discuss such a proposal, but not in isolation. AOI and other groups are interested in a comprehensive package that includes long term state budget reform, permanent capital gains tax relief, extension of key tax credits and other items critical to investment and job creation.
AOI will keep you apprised as the issue develops.