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52 °F Forecast | Road Cams Sunday, May 9, 2004 Today's News | Classifieds | Autos | Homes | Jobs | Tempo | Health | Community | Home Delivery SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA Newspaper in Education Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find a Rental Place an ad eSouthernOregon Automotive Communities Entertainment Publications Recreation Calendar CUSTOMER SERVICE Frequent Questions Advertising Information Home Delivery Employment Contact Us Media Kit Network Affiliate Email Story to a Friend March 11, 2004 Tax reform group takes ideas Suggested fixes include: cut corporate loopholes, create sales tax and return local control By DAMIAN MANN Mail Tribune Tax foes and tax advocates agreed Wednesday night that something needs to be done to improve Oregon’s budget problems. "It has made Oregon a poster child for what not to do," said Dave Toler, chairman of the Three Rivers School District board. Toler and other Southern Oregon residents spoke before representatives from the Joint Interim Committee on Tax Reform, which is holding eight meetings around the state. A majority of the residents, school board members and city officials suggested getting rid of corporate loopholes, creating a graduated tax that is fairer to low-income families, creating a sales tax and allowing more local control. The tax reform committee has been charged with finding a better way of dealing with Oregon’s complex tax and revenue structure that has been blamed for the budget crisis affecting schools, public safety and social safety-net programs. Advertisement Legislative Revenue Officer Paul Warner, who heads the committee, said Oregon has a unique revenue structure that is actually less dependent on state taxes than other states. However, it is more dependent on money from the federal government as well as other charges and fees and nontax sources such as the lottery. Oregon ranks seventh in the nation in overall per-capita spending, but is 29th in overall revenue from taxes. The state, he said, receives 71 percent of its total tax revenue from income taxes — the highest in the nation. The loss of income tax revenue is the main reason Oregon core services have been hit so hard during the recession, he said. Medford resident Sue Kline said the state needs to do a better job of preventing the spread of misinformation that helped lead to the defeat of Measures 28 and 30. "We need simple concrete data for people to let them know what’s going to happen," she said. "For tax reform: educate, educate, educate." But Roger King, who opposed both measures, said the state doesn’t need more money — it needs to quit spending too much. "There is so much government waste in Oregon and the Legislature knows all about it," he said. Uncollected taxes alone amount to $1.3 billion dollars and the lottery, if better managed, could generate another $90 million, he said. Ashland Rep. Alan Bates, a Democrat, responded that the state is already pursuing some of these issues, but even if they are partially resolved they would only make a dent in the state’s budget problems. Bates, who is also on the committee, said the 1990s property tax initiative Ballot Measure 5 created many of the problems the state now faces, particularly for education. "The loss of local control in K-12 funding is one of the key problems we’re dealing with," he said. Amy Amrhein, an Ashland School Board member, urged the committee to consider other tax options to help stabilize education funding, but also to allow local schools more ability to generate their own revenues. Peggy Penland, Medford School Board member, said school districts have had to plan their budgets based on unreliable forecasts that predict the state budget two years out. "It’s like hitting a bull’s eye from a mile away," she said. Medford resident Jeffrey Riley gave the committee a list of tax changes and tweaks, including proposing a consumption tax that would not be collected during the holidays to help retailers. Medford resident Al Densmore said previous attempts to raise taxes have failed in Oregon. "I am not the only one who has told you you might be embarked on the wrong mission," he said. Jacksonville resident Jack Duggan said the committee has the responsibility to create a better system of taxation that would stabilize Oregon through difficult economic times. "Do it poorly and your legislative epitaph will read, ‘Another also-ran,’ " he said. 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