The following statement was released by the state’s four largest business associations on Tuesday, May 10.
Associated Oregon Industries, Oregon Business Association, Oregon Business Council and Portland Business Alliance applaud the incredibly hard work by Senators Burdick and Morse to craft a plan for enhanced revenue stability and economic growth in Oregon. Through their efforts, the Senate Revenue Committee has set the framework for a revenue stability package that should be carried forward by the legislative leadership and the governor in the weeks ahead.
As we have long advocated, the state desperately needs a plan to save money in the best of times to temper the loss of revenue during downturns. The wild fluctuation in revenue from capital gains is a major contributing factor to the instability of our income-tax-based system. Reducing capital gains taxes will help stabilize revenues over the long-term. So too will dedicating a portion of the personal and corporate income tax kickers into reserves.
We also believe that cutting capital gains taxes in Oregon, which are the highest in the nation, will encourage economic growth by freeing up capital and sending a positive signal to investors.
As the state’s largest business organizations, we supported Senate Joint Resolution 26 (SJR 26), authored by Senators Burdick and Morse, which called for capital gains reductions, kicker reform, stronger state reserve policies and a disciplined state savings plan. The package approved by the Senate Revenue Committee last week includes some of the primary provisions of SJR 26, and can now serve as the basis for discussions around how to move a revenue stability package forward this session.