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--> --> Prospects for tax hike dim at special session By Brad Cain Associated Press Writer SALEM - Nearly 20 years ago, with Oregon in the throes of a severe recession, then-Republican Gov. Vic Atiyeh and a Democratic-controlled Legislature agreed on a temporary income tax hike to rescue state programs from deep budget cuts. As lawmakers prepare to meet in a special session early next year to deal with a $720 million budget shortfall, prospects for a similar tax increase appear dim, however. Much has changed since the 1982 special session where Atiyeh and the lawmakers worked out the income tax surcharge. For one thing, the 78-year-old former governor believes there was a more cooperative spirit in the Capitol back then. "We were able to sit around a table and say, `No idea is a bad idea,' " Atiyeh said. "We worked together and tried to solve the problem." Additionally, any move to raise taxes has been made much more difficult because of a voter-imposed requirement that any hikes now must win three-fifths majority votes in both the House and Senate, not just simple majorities. The main impediment to raising taxes has been the rise of taxpayer advocate groups such as Bill Sizemore's Oregon Taxpayers United, which has pushed various measures since the mid 1980s to reduce taxes and limit government. Sizemore already has signaled that, if necessary, his group will mount a signature-gathering drive to block any income tax increase the Legislature might advance. At the same time, the OTU chief has said his group might not try to block more limited tax hikes, such as increasing taxes on cigarettes or beer and wine. Still, veteran Sen. Cliff Trow said the prospect of Sizemore or other taxpayer advocates stepping into the debate has a chilling effect on any tax hike talk. "The climate has changed," the Corvallis Democrat said. "There is an attitude out there that somehow the government can cut itself down without hurting people who need government services." Trow, who voted in favor of the 1982 income tax increase, said he believes lawmakers should at least look at doing something similar or be prepared to explain to their constituents why they slashed spending for state programs. There are other avenues lawmakers could take to raise revenue to ease the state's budget shortfall. Lawmakers could dip into the pot of money Oregon received as its share of the national tobacco settlement, and they also could postpone a voter-passed increase in the federal income tax deduction that's supposed to take effect next year. Political analyst Bill Lunch says even those steps are unlikely, and that tax increases will be nearly out of the question, given the mood of the current Republican-controlled Legislature. This past week, GOP leaders in both the House and Senate went out of their way to distance themselves from comments by Senate President Gene Derfler that the Legislature should at least study the idea of raising taxes. "Nothing is impossible, but it's difficult to envision any set of circumstances in which the governor and the Legislature could agree on tax increases in the upcoming special session," Lunch said. Atiyeh, for his part, said he agrees with Derfler that lawmakers need to at least look at the possibility of boosting taxes if it becomes obvious that not doing so will damage state programs and services. Email your... Technical questions & comments to: WebMaster Daily Tidings editorial comments & questions to: Editor Visit our other Oregon Newspapers... | Albany Democrat-Herald | Ashland Daily Tidings | Corvallis Gazette-Times | | Lebanon Express | Newport News-Times | Springfield News | Cottage Grove Sentinel | Ashland Daily Tidings 1661 Siskiyou Blvd. Ashland, OR 97520 Telephone 541-482-3456 © Copyright 2001 Lee Northwest Publishing