FOR IMMEDIATE RELEASE

April 20, 2009

Contact: Michael Cox (503) 986-1904

 

House Passes Bill to Audit Tax Breaks and Giveaways

HB 2067 would allow a regular examination of Oregonian tax expenditures

 

SALEM – With nearly $5 billion worth of tax credits on Oregon personal and corporate income taxes every year, the Oregon House Democrats today took steps to get greater control over tax loopholes with the passage of House Bill 2067.  The bill, carried by State Rep. Jules Bailey, establishes a sunset on all new tax credits, and allows the Legislature to review these tax credits at least every six years.  The bill passed with a three-fifths majority.

 

“Smart budgeting requires a regular examination of what Oregonians are paying for and what we are getting in return,” said Bailey (D-Portland).  “We should ensure we are meeting our goals of making our tax system fairer for Oregon families and small businesses.”

 

HB 2067 would allow for an orderly review of certain tax credits not required under federal law or the Oregon Constitution.  With 64 such credits on the books, House Democrats have called for a regular review to make sure Oregonians are getting what we pay for.  As the sunset date of a tax credit approaches the House Revenue Committee will see research and hear testimony about how that particular credit has performed.  The committee will then decide whether to keep the credit, expand it, modify it or end it all together.

 

“House Democrats intend to pursue a hard nosed audit of tax loopholes and make the responsible choices to move Oregon forward,” said House Democratic Majority Leader Mary Nolan (D-Portland)

 

In the last decade, the amount of income taxes avoided through tax breaks for individuals and corporations has grown from $5.8 billion to just under $10 billion.  The state of Oregon currently spends more on tax expenditures, over $30 billion per biennium, than it spends on education, healthcare and public safety combined. 

 

“This legislation takes a first step forward in gaining better control over tax breaks given by previous legislatures.  We need to make sure every one of those tax breaks make sense for Oregon, that our state is getting a good return on its investments and that these tax breaks are fair,” said House Speaker Dave Hunt (D-Clackamas). “The Legislature owes it to the citizens of Oregon to review and reject those corporate tax breaks that are taking away valuable funding for our schools, health care and public safety.”

 

HB 2067 now moves to the Senate.

 

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