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House vote to repeal business tax credit angers GOP Friday Jun 23, 2017 at 7:00 PM Jun 23, 2017 at 7:00 PM By Kristena Hansen Associated Press PORTLAND — After a fiery three-hour debate that capped a contentious week in Salem, the Oregon House approved a partial repeal of a 2013 "Grand Bargain" business tax credit in a 31-28 vote Friday with three Democrats joining Republicans' opposition. Republicans and businesses throughout the state are vehemently opposed House Bill 2060, which Democrats advanced out of a House committee by surprise two days earlier. It may also face a legal challenge, opponents say, if it passes its final hurdle in the Senate. "House Dems just proved they don't need to follow the Constitution for revenue votes as they raise taxes," said Senate Republican Minority Leader Ted Ferrioli, referring to the supermajority requirement for tax hikes that House Democrats and the Legislature's non-partisan legal counsel say doesn't apply in this instance. "(House Speaker Tina Kotek) is holding up the education budget, threatening to derail a transportation package and killing the credibility of the Legislature." HB 2060 would raise an extra $200 million for the 2017-19 biennium — an amount some lawmakers have been trying to cobble together for the record-$8.2 billion K-12 education budget that's up for final vote Tuesday in the House. That's less than half the extra revenue they could've raised, about $500 million, by boosting the existing corporate income tax — a last-minute plan pitched Monday by Senate Democrats that might've held sway with enough Republicans to pass on a supermajority and boost funds for schools. Hass's plan excluded a Measure 97-like gross-receipts tax, which voters rejected and Republicans opposed, so House Democrats advanced HB 2060 out of committee Wednesday. The bill partially repeals a tax credit for so-called "pass-through" entities, meaning LLCs, S-corporations and partnerships commonly formed by small businesses. These entities are exempt from the federal corporate income tax, so profits and losses are taxed through the personal incomes of the owners, partners or shareholders.