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http:// --> Ashland, Oregon HOME Valley & State Sports Nation & World Opinion/Editorial Classifieds Business Columnists Local Issues Obituaries Weather Archive Revels Etcetera Backpage Hot Topics Most Viewed Forum Photo Galleries Video Readers Polls O-Zone Online Games Movie Preview Special Sections Real Estate Guide Menu Guide Shakespeare Subscribe Contact Us Rate Card Place an Ad Top Galleries: February 1, 2007 Sound familiar? Sales tax proposed By Julia Silverman The Associated Press SALEM — A bill to impose a 5 percent Oregon sales tax, and cut the income tax rate, surfaced at the state Capitol on Wednesday, reigniting an old debate with a few new sparks. For one, this year's version of tax reform comes with five House Republican sponsors, though the party has had a reputation as being generally anti-tax. Any revenue-related bill needs 36 votes to pass out of the House, and there are just 31 Democrats in the 60-member chamber. On the Senate side, some of the chamber's heaviest hitters are on board, including Sen. Kurt Schrader, D-Canby, co-chair of the budget-writing committee. The bill, HB 2530, also folds in some pet Republican causes, including a reduction in the capital gains tax, and a reduction in the number of people subject to the state estate taxes. But its most prominent feature is to reduce the personal income tax rate from 9 percent to 6 percent on most taxpayers, and start a sales tax, long a pet idea of those who argue that Oregon's tax system is unstable, relying too heavily on the income tax and leaving core state services vulnerable to economic downturns. Oregon voters, however, have voted against a sales tax nine times. Rep. Bob Jenson, R-Pendleton, one of the most senior members of the House, has signed on as a sponsor of the bill, along with Republican Reps. Sal Esquivel of Medford, Scott Bruun of West Linn, Chuck Burley of Bend and Vicki Berger of Salem. Jenson said the idea could have momentum in this legislative session. Last fall, he noted, Oregonians voted against ballot measures to limit state spending and to put new tax cuts in place, suggesting that perhaps there's been a change in voter attitudes. And legislators aren't preoccupied this session with trying to patch holes in a budget suffering from an income tax collection decline, he said, giving them more space for a careful review of the current system. "We need a unified effort as far as the Legislature is concerned," Jenson said. "Do we have that now? I'm not sure, but we can get pretty close." Jenson said a sales tax would allow the state to collect money from out-of-state tourists, and from members of what he called "the underground economy," who are paid under the table in cash. Gov. Ted Kulongoski has said that he'd support a consumption tax, as long as it was part of a broader package on tax reform. On Wednesday, a spokeswoman said Kulongoski's focus in the current legislative session would be on narrower issues: raising the minimum tax paid by corporations, and suspending the corporate kicker — the money returned to businesses when state revenues exceed forecasts by 2 percent or more. At least one anti-tax group warned that any effort to pass a sales tax would likely be referred to voters as a ballot measure, possibly meeting the same fate as the nine previous attempts. "They should try to work with the existing revenue that they have, and not keep on coming out with different tax ideas, which wind up costing taxpayers more, even though they promise it won't," said Jason Williams, executive director of the Oregon Taxpayers Association. Current Comments: I definitely support a sales tax. It could start lower such as 3%, but such a tax would definitely help retirees who face continuing high property taxes and income tax. I urge everyone in Oregon to support a sales tax and equalize the burden of public services to everyone purchasing goods in this state. Carol Sunahara - Ashland, Oregon - February 1st, 2:14 PM I will need to learn more about this proposed tax before I commit either way. But based on my limited understanding of the proposal, it does seem fairer than the current system and has some nice provisions such as reducing income and capital gains taxes. And it is a tax the individual has some control over. Spend less and you pay less tax. For those with credit card debt it would be a win/win situation both ways. Doug Forsyth - Ashland - February 1st, 2:53 PM "They should try to work with the existing revenue that they have".Why not, close some more schools, libraries,let the public universities lock their doors, allow more and more meth labs to take their place. Everything seems to be working out great on the extremely limited existing revenue,isnt it? As a taxpayer I support those things taxes go toward, and a consumption tax is a small price to pay for a civilized society.Income taxes are high, and the idea of spreading it out a bit is reasonable Taxpayer - Medford - February 1st, 10:53 PM The objective of govenment should be to govern pragmatically and not simply tax and spend as it is by its very nature, bureaucratic, inefficient and uncompetitive. Sure there are some things such a the maintenace of law and order that it does better than the private sector, but in most things it does not. Better we keep government small, focused, and out of our hair, than to continue to allow it to tax and grow. Ashland's current financial woes are the result of a government out of control. Doug Forsyth - Ashland - February 2nd, 12:57 AM Some think Oregon is "low tax" compared to California; it's not. I considered Ashland and other Oregon areas for retirement, but wrote them off because of your virtually flat income tax. Lack of a sales tax doesn't begin to compensate. If this proposal is revenue-neutral and caps the personal income tax rate at 6% (5% would be better) on family taxable incomes of $80,000 or less in exchange for a 5% or even 6% sales tax, go for it. Oregon's economy would attract more retiree expenditures. Sal Santamaura - San Clemente, California - February 2nd, 1:00 PM Leave a Comment: Advertisement: Advertisement: Paid Advertising: Debt Help Inkjet Printers Student Loans Water Filter Helzberg Diamonds Mortgage Calculator Security Systems Debt Relief Advertisement: Copyright © 2007 Ashland Daily Tidings and Ottaway Newspapers. All Rights Reserved. Del.icio.us