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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 Hottest Galleries: October 22, 2007 Esquivel to shape tax reform in 2009 session By Chris Rizo Ashland Daily Tidings SALEM — State Rep. Sal Esquivel will have a hand in shaping the Legislature's attempt at tax reform in the 2009 session, having been appointed last week to the Task Force on Comprehensive Revenue Restructuring. "I hope that we lay out a plan that decreases taxes and gives tax cuts to working people and to those who own property because they pay about 90 percent of the taxes in the state of Oregon," the Medford Republican said in a telephone interview Sunday. Charged with taking a deep look into the state's tax structure and developing a blueprint for a more diversified revenue stream, the 30-member panel was created through legislation that Esquivel co-sponsored along with a bipartisan coalition of lawmakers. Esquivel said chief among the task force's challenges is to soften the volatility that plagues the state's budget process as well as relieving the tax burden lawmakers have foisted upon property owners to finance more than their fair share of state programs. "If we go into this with our mind's set, then that's too bad," Esquivel said. Among his suggestions: reduce the state personal income tax by 40 percent and substitute it with a statewide sales tax that could only be increased by voter approval. Esquivel said under such a system, taxpayers in every income range could expect to pay the state less and a sales tax would tap the state's vast underground economy as well as tourists. But before Oregonians will stand behind the plan, they will need assurances that they will not be duped by fast-talking politicians, he added. "People in Oregon don't trust the Legislature, and they shouldn't because we haven't been good stewards of their money; so, therefore as long as the people have control of it, it could happen," Esquivel said of passing a sales tax, something voters have rejected nine times. "If the trust isn't there, it isn't going to happen," Esquivel warned. As for the traditionally anti-tax representatives on the task force, Esquivel said he hopes they too come to the table with an open mind. "They are anti-tax, anti-tax, but have you heard any great ideas out of them of what to do?" Esquivel asked rhetorically. "We need to collectively figure out a better mouse trap because this mouse trap isn't working very well right now." Also on the newly created task force is Brad Hicks, president of The Chamber of Medford/Jackson County, whom Esquivel recommended to the panel. "He brings some great skills to the table," Esquivel said, noting Hicks' previous work as a legislative staffer and his longtime work with the local business community. As for the Oregon Center for Public Policy's report last that the state's rainy-day fund will not provide a revenue cushion until at least June 2009, Esquivel said the state's new savings account is part of a long-range plan rather than an immediate cure-all. "It beats the heck out of what we had, which was nothing," Esquivel said of the rainy-day fund in which lawmakers started earlier this year with $290 million that would have otherwise gone back to C-corporations in the form of tax rebates under the kicker law. Charles Sheketoff, OCPP executive director and co-author of the rainy-day report, was also appointed to the task force as one of two taxpayer representatives. Sheketoff said he hopes that the panel can help lawmakers identify some of the state's funding needs and help the state better prepare for recession. "We have a structural deficit," he said. "We don't have enough money to meet the demands and wishes of Oregonians." Retooling the state's corporate tax code so it's more "equitable" and eliminating the state's unique kicker law, in which most unanticipated revenues are returned to taxpayers, could provide the additional revenue that's needed for schools, infrastructure and health care programs, he said. "One of the ways that we can protect ourselves for the downturn is to save the unanticipated revenues during good times," Sheketoff said. As for a statewide sales tax: that is not the answer, he said. "It would only make our system more unfair than it already is." Chris Rizo covers the state Legislature for the Ashland Daily Tidings. Reach him at [email protected]. Current Comments: Hooray for Sal. I hope that when the whole picture is studied, they will find a way to incorporate a sales tax as part of the states revenue. this has to be on a no extra taxes basis for the residents of Oregon. I do not understand the thinking of those who feel we should be footing the whole bill to keep this state alive and well and let all those who come to visit and shop ride on free roads and all the other services funded by Oregon and used by the out of staters. There is no better way. jim - medford - October 22nd, 9:28 PM Sal is dreaming. Voters will not buy into a sales tax unless it totally replaces either the income tax or the property tax, and a sales tax that replaces the income tax would have to be very high, prohibitively so. And his statement that the current tax system isn't working is nonsense. The system brings in plenty of money. The problem is the free spending state legislature, whic just grew state spending by 20 percent, but couldn't start a rainy day fund without stealing the corp. kicker. Bill Sizemore ( [email protected] ) - Klamath Falls - October 23rd, 9:03 AM If we could be assured through rocks tied to our legislators with a trap to throw them in the Pacific if they even briefly entertain the idea of cheating us, I would consider voting for a sales tax. Then only if it was also written in stone, they could not under any circumstances raise the income tax when they want more money. I want a lot of guarantees. He's right I DO NOT TRUST OUR LEGISLATORS, they have lied and cheated in the past Diania - John Day - October 23rd, 9:07 AM What is with the politicians in Oregon. It has been what, 11 times we have voted down a sales tax. And still, they say we need one. Disgusted - Corvallis, OR - October 23rd, 9:55 AM You all say you don't trust the legislature, yet you continue to reelect the same people. We don't need term limits, just drop the party idea and never reelect anybody. After a few sessions where the "lawmakers" know they'll not be back for a return engagement, they'll start doing our business correctly, even if it doesn't poll well and is unpopular. Only then will we get reform as we need vice "like". David - Portland, OR - October 23rd, 10:11 AM Bill comment above that "..a sales tax that replaces the income tax would have to be very high, prohibitively so" may only be true if we assume state spending cannot be reduced. That's an assumption we need to question. States such as Florida and Texas have no income tax without a prohibitavely high sales tax. The Wall Street Journal notes that people are moving to such states from high income tax states. Oregonians should take note. Steve Buckstein ( [email protected] ) - Portland, OR - October 23rd, 11:06 AM I can assure I didn't vote for those thugs in our legislature. Have you ever considered if there was NO income tax and just a sales tax, everybody would pay their fair share, the more you spend, the more you pay, instead of punishing those who work for a living. Sybella - Mt Vernon - October 25th, 2:13 AM Leave a Comment: Advertisement: Advertisement: Paid Advertising: Debt Help Inkjet Printers Payday Loans Free Ringtones Debt Consolidation Security Systems Debt Relief New Hampshire Primary Advertisement: Copyright © 2007 Ashland Daily Tidings and Ottaway Newspapers. All Rights Reserved. Del.icio.us