Educators target Republicans� tax-break proposals - May 10, 2005

Mail Tribune (Medford, OR — Wayback)

2005-05-11

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49 °F Forecast | Road Cams Wednesday, May 11, 2005   Today's News | Shop Our Valley | Tempo | Health | Community | Home Delivery  | Contact Us       SECTIONS Home Page Local News Sports Business Obituaries   Life   Opinion   Tempo   AP News   Weather   Classified   Archives   Site Map   SPECIAL SECTIONS   Since We Asked   Outdoor Journal   Menu Guide   How To Guide   Health   Readers' Choice   Real Estate Showcase   Real Estate Guide   Joy Magazine   Homelife Magazine   Wedding Guide   Passport to the Rogue Valley     SHOP OUR VALLEY AutoFinder HomeFinder JobFinder Classified Place an ad  TOP JOBS   EXTRA   Ashland News   NIE   Personals   Movie Times   TV Times   E The People   Volunteer   Moving here?  eSouthernOregon   CUSTOMER SERVICE FAQ's Advertise with us Home Delivery Employment Contact Us Media Kit Oregon Road Conditions & Cams Email Story to a Friend May 10, 2005 Educators target Republicans’ tax-break proposals By DAMIAN MANN Mail Tribune Two Southern Oregon education groups are charging local Republican legislators with fiscal irresponsibility in backing three bills that would increase future tax breaks to corporations and businesses by more than $300 million. "At the same time we are cutting the budget, we are cutting the tax pie," said Karen Starchvick, team leader for the Jackson County chapter of Stand For Children, an advocacy group for children. Starchvick’s organization and the Social Justice Alliance, a Josephine County nonprofit that promotes civil rights and tax reform, have joined forces to fight bills that they say decrease revenues, ultimately resulting in less money for education and other services. However, Republican Reps. Dennis Richardson of Central Point and Sal Esquivel of Medford say House Bills 2332, 2529 and 2542 are designed to attract more business to the state, resulting in a future increase in income taxes that would benefit schools and other government services. Advertisement Dave Toler, program coordinator for Social Justice Alliance, said, "They’re spending money like there’s money growing on trees." He argues that Republicans say they want to put their foot down on raising new taxes, but don’t mind robbing from schools and other services to help special interests and the wealthy. Toler said conservatives will argue that many of these tax breaks don’t kick in until 2009 so they won’t have an immediate impact on the current biennial budget. "It’s a Washington, D.C., mindset," he said. "Do it now. Pay it later." Richardson said his support for these tax reductions comes down to a philosophical difference of opinion and is not an attempt to cut school funding. "It comes down to a vision and there is a difference of opinion," he said. Because most of the tax cuts won’t take effect for several years, he said it will be one more incentive for corporations and businesses to move to Oregon, providing enough time to make up for any potential taxes that might be lost. "The reason it is delayed is to give time to generate the income and jobs to fill that gap," he said. Richardson said he understands education supporters’ concerns when they say cuts in education could turn off corporations looking for a well-educated work force. Starchvick, a mother of two who sends her children to Jacksonville Elementary, said the legislators are being shortsighted, not realizing the impact a poorly educated work force could have on the economy. She said they just have to see how much education has been harmed by several years of budget cuts to realize there already have been drastic changes. "We have the fourth worst student-to-teacher ratio now," said Starchvick. "We have the second shortest school term in the country." Esquivel disagreed that legislators are somehow robbing education to pay for corporate interests, and said schools need to do more to be held accountable for the money they spend. He said, "They put a price tag on the more money you have, the better education you have, and that’s not true." Instead of looking for ways to cut costs, such as combining administrators to handle multiple districts, they continue to demand more funding. "When was the last time educators didn’t ask for more money?" he said. Sen. Alan Bates, D-Ashland, said he opposed creating additional tax reductions when the Legislature should look at existing tax breaks, like one for owners of luxury yachts. "There’s no question in my mind we could do better in this budget," he said. Bates said Republicans have spent the past few years attempting to shrink government to make it more efficient. "They think schools are inefficient," he said. "I challenge Republicans to go to your school district and sit with your teachers and principals and show them where to cut," he said. Bills that propose corporate tax breaks: The following bills would increase future tax breaks to corporations and businesses: House Bill 2332, which reduces the capital gains tax resulting in an estimated loss in revenue of $220 million by 2009-11, passed by a vote of 34-25 on the House floor Monday. House Bill 2529, which will likely be voted on in the near future, would raise the tax exemption ceiling for estates from $1 million to $3.5 million, resulting in lost revenue of $87 million by 2009. House Bill 2542, passed by the House in April, ties Oregon to federal tax breaks for businesses, resulting in a tax loss of $27 million in2005-07. Reach reporter Damian Mann at 776-4476, or e-mail [email protected] Mail Tribune Home  | Local News  | Sports  | Business  | Obituaries  | Life | Opinion AP News | Archives  |  Site Map  | Community  | Classified   Copyright © 1997-2005 Mail Tribune, Inc. All rights reserved. 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