Taxes and Oregon’s 2019 legislature: a new low in abuse of political power

powercorrupts

 

“Political expediency corrupts moral integrity, language and truth itself,” journalist Dorian Lynskey writes in a new book on George Orwell’s “1984.”

The Democrats running Oregon’s state government have shown the truth of that.

Efforts by Oregon’s Democrats to derail a public vote on a gross receipts tax reveal that, as put by conservative writer Jim Swift, “Being an asshole has now become a feature, not a bug,” in politics.

Setting a new low in political shenanigans in the 2019 session, Democrats began by passing a gross receipts tax on sales inside the state’s borders that exceed $1 million, whether or not the business makes a profit.

The tax, equivalent to a sales tax, is expected to raise $2 billion per biennium. This less than three years after almost 60% of Oregon voters rejected Measure 97, a ballot measure that would have imposed a state gross receipts tax.

In an insulting, arrogant move to protect their revenue-raising blitz, the Democrats then passed a bill (SB 116) setting a particularly inconvenient election date if a tax repeal petition then seeking signatures qualified for the ballot. Rather than having the vote take place during the general election in 2020, when there’s likely to be high interest and participation, the bill provided for a special election on January 21, 2020.

I guess they figured picking Christmas or New Year’s Day for the vote would be too obvious an attempt at manipulation.

Adding insult to injury, the Democrats then passed another bill (HB 2164) which changed the language of the original tax. At the time, The Oregonian reported only that the bill “makes largely technical changes to the new business tax lawmakers passed earlier in the session to fund education.” But it was much more significant than that. If Gov. Brown signs the bill, it will invalidate all the signatures already gathered on a repeal petition referencing the previous language.

“HB 2164 is designed to look like a cosmetic language change to a 40-page tax bill, but it contains poison words designed to murder the voter campaign to pass petition #301 (the repeal petition),” said the Taxpayer Association of Oregon.  “….it is borderline criminal to rob the people of their right to vote on matters they care about. Politicians should not be able to subvert and void the people from using their initiative process to petition their government.”

Having achieved a supermajority in the 2019 Legislative session, the Democrats proceeded to ignore their ethical responsibility to Oregonians and abuse their power, vividly illustrating the observation of Lord Acton, the 19th-century British historian: “Power tends to corrupt. Absolute power corrupts absolutely.”

As Senate President Peter Courtney, D-Salem, said at the end of the Legislative session, “I thought we were overreaching before we started. I think we did.”

“What kind of fool do you take me for?”, asked one of the Three Stooges in Saved By The Belle. Oregon voters should be asking the same thing of Democratic legislators.

 

 

 

After adjournment, the deluge

stormcoming

I guess it wasn’t enough for Democrats to allow people in the country illegally to get Oregon driver’s licenses, ignoring voters who soundly rejected the practice in 2014. Oregon’s Democrat-controlled 2019 Legislature also voted to bury Oregonians in a deluge of tax increases.

“Only time will tell whether there will be political consequences for Oregon Democrats who enacted this tax hike, Patrick Gleason, Vice President of State Affairs at Americans for Tax Reform, wrote in Forbes. “What is certain is that Oregon lawmakers are making their state a less attractive place to do business, create jobs, invest, and raise a family, and they are doing so at a time when other states are implementing reforms to make their tax and regulatory climates more welcoming.”

 At the top of the 2019 Legislature’s tax list is the gross receipts tax on sales inside the state’s borders that exceed $1 million, whether or not the business makes a profit. The tax, equivalent to a sales tax, is expected to raise $2 billion per biennium. The legislative revenue office says the tax will hit about 40,000 businesses. This less than three years after almost 60% of Oregon voters rejected Measure 97, a ballot measure that would have imposed a state gross receipts tax. 

Adding insult to injury, the Democrats passed SB 116 setting a particularly inconvenient election date if a tax repeal petition now seeking signatures qualifies for the ballot. Rather than having the vote take place during the general election in 2020, when there’s likely to be high interest and participation, the bill provides for a special election on January 21, 2020.

I guess they figured picking Christmas or New Year’s Day for the vote would be too obvious an attempt at manipulation.

Paid Family Leave legislation (HB 2005-B) is going to cost you, too. A 1% payroll tax will fund a paid family leave insurance program (FAMLI) to be administered by the Oregon Employment Department.  The tax will come on top of the business sales tax.

A Revenue Impact statement projected that employers will pay $542.3 million and employees $1,029.6 in 2021-2023. In 2023-2025, employers will pay $ 775.0 million and employees $1,471.5 million.

Then there’s the maneuvering with the kicker.  The collective “kicker” tax rebate Oregonians will likely receive when they file in 2020 is going to be $108 million smaller, thanks to HB 2975, a bill Gov. Kate Brown signed into law in April.

 And don’t forget SB 861, which provides for paying the postage for election ballots. It will cost taxpayers an estimated $1.7 million per election. Gov. Brown pushed for the law, figuring it would increase voter turnout. In a rather bizarre statement, given the widespread availability of stamps, Brown testified that low-income and younger residents don’t always have access to postage stamps.

There’s also HB 2449-B, a 50-cent increase in the emergency communications tax on our phones, which will bring the total to $1.25 per month.

Oregon’s minimum wage law is increasing employer costs, too.

According to the Office of Economic Analysis Department of Administrative Services, the law will result in a slowdown in job growth. “While the impact is small when compared to the size of the Oregon economy, it does result in approximately 40,000 fewer jobs in 2025 than would have been the case absent the legislation,” the office has reported.  “Our office is not predicting outright job losses due to the higher minimum wage; however, we are expecting future growth to be slower as a result.”

And next year, Oregon voters will get a chance to vote on an increase in yet another Oregon tax, this one on tobacco. If approved, the cigarette tax would increase by $2 a pack and E-cigarettes and cigars would be taxed at 65% of their wholesale price.

Whew, what a torrent!

As the humorist Gerald Barzan observed, “Taxation with representation ain’t so hot either.”