OREGON: A NATIONAL LEADER IN UNEMPLOYMENT SURGE

Democrats Introduce and Consider Bills to Raise Taxes, Stifle Businesses

Oregon: A National Leader in Jobless Surge…

“The jobless rate jumped by at least one percentage point in 23 states from December to January, led by a surge of 1.6 points in North Carolina, Oregon and South Carolina, the Labor Department said today in Washington.”

(Oregon, Carolinas Led U.S. Unemployment, Bloomberg, Bob Willis, 3/11/2009)

…and a National Leader in Joblessness Among Certain Age Groups.

“Oregon's unemployment rate, which exceeded the nation's 8.1 percent figure in February, also surpassed the national average last year for several age groups, including people 65 years and older who need to work.”

(Oregon jobless rate hits 10.8%, The Oregonian, Richard Read, 3/17/2009)

Highest Unemployment Rate Since 1983.

“Grim new jobs numbers show that Oregon's unemployment rate shot up by a full percentage point to 10.8 percent last month, the highest rate since July 1983 and well ahead of the national rate of 8.1 percent. The February numbers for Oregon showed the state lost 21,700 jobs as Oregon's economy continued to struggle more than most others in the nation.”

(Oregon's Jobless Rate Hits Double Digits in February, Associated Press, Brad Cain, 3/16/2009)

Most Economists Didn’t Expect Such Significant Job Losses in February…

“To Tim Duy, a University of Oregon economist, that rate is staggering, having soared from 5.9 percent in June. But Duy finds the 21,700 jobs lost in February particularly dire. Duy's pessimistic projection had anticipated losses of 10,000 a month for five months. But Oregon lost more than twice that last month -- on top of 13,000, as revised, in January. ‘What that suggests to me is the state's budget forecast is not going to work,’ Duy said. ‘My main problem is I barely see any light in the tunnel.’”

(Oregon jobless rate hits 10.8%, The Oregonian, Richard Read, 3/17/2009)

…Perhaps They Forgot the Legislature was in Session.

“If you're a businessman in Colorado or Minnesota or a host of other states, you're likely to see your state taxes go down in the next few months. Republican and Democratic governors and legislatures in such states recognize that high costs mean fewer jobs, a precious commodity in times of recession. If you're in Oregon and your governor has his way, your taxes will go up. Doesn't make much sense, does it?”

(Editorial: Bad Time to Boost Taxes on Business, Bend Bulletin, 2/3/2009)

“With state revenues falling like a piano out a fifth-floor window, Oregon lawmakers are busy writing bills aimed at wringing as much new money as possible from some groups of taxpayers.
The primary targets include high-income earners, corporations and car buyers. But the list, which seems to grow longer by the day, also takes aim at well-off retired people, beer drinkers, tourists, homebuyers and those of us who look forward to those occasional "kicker" refund checks just before Christmas.”

(State Legislators Scramble for New Revenue Sources, The Oregonian, Harry Esteve and Jeff Mapes, 2/27/2009)

Eliminating Tax Incentives That Promote Job Creation…

“Erik Petersen of the Bend-based solar energy electronics firm PV Powered has been driving to the state Capitol lately to fight for a tax break benefiting his company. But he can take comfort knowing he's not the only one...Petersen says the business energy tax credit has been "critical" to the growth of his firm, which employs 50 people in Bend.”

(Salem Budget Woes Could Put Your Tax Break at Risk, Bend Bulletin, Nick Budnick, 3/9/2009)

…Increasing Gas Taxes on Oregon Drivers Whether They Have a Job or Not…

“Oregon lawmakers received a chilly reception on their idea to raise the tax on beer. But they may fare better in their quest to raise gasoline taxes to pay for better roads and fewer bottlenecks. Gov. Ted Kulongoski staked out his claim late last year, proposing a 2-cent hike to the current 24-cent-a-gallon state fuel tax, which hasn't been raised since 1993. Now, Democrats may push even higher taxes on gas as a way to fix the state's deteriorating roads and bridges.”

(Democrats Throw Fuel on Tax Increase Fire, The Oregonian, Janie Har, 3/17/2009)

…Increasing Taxes on Beer Drinkers, Risking Oregon Jobs…

“Oregon's brewers pleaded against a tax increase Wednesday, saying a sizable boost on malt beverages would lead to job losses and devastate their industry.”

(Brewers: Beer Tax Will Cut Jobs, The Oregonian, Janie Har, 2/26/2009)

…Denying Oregon Businesses State Tax Benefits in Federal Stimulus…

“The Oregon Legislature has moved quickly to make sure that some tax breaks in the national economic recovery plan won't apply immediately on individual and business state tax returns. The breaks include provisions for accelerated depreciation of business equipment such as computers and for excluding some unemployment compensation. The bill has cleared the Legislature on largely party-line votes, Democrats for, Republicans against.”

(Lawmakers Move to Temporarily Block Some Tax Breaks in Stimulus, Associated Press, 2/14/2009)

…Raising Taxes on Medical Providers…

“Local hospital officials fear a state tax proposed to improve health coverage in Oregon could actually make it more costly to treat patients in Coos Bay. Proponents say the proposal could bring in as much as $1 billion in federal matching funds to help insure 100,000 Oregonians. Opponents argue the tax unfairly targets hospitals that would have to cut programs or pass along higher bills to patients who pay their own way.”

(Proposed Tax Could Cost Hospital $3 Million, The Coos Bay World, Alexander Rich, 2/13/2009)

…Eliminating Incentives for Businesses in Rural Oregon…

“House Bill 2429 is a way of saying to business wanting to locate or expand in Oregon: We don't want you. The bill is about enterprise zones. Those zones are set up in Oregon by local governments to attract business. House Bill 2429 shoos business away. In return for expanding or locating in an enterprise zone, an eligible business can get a property tax exemption for at least three years and up to five. There are more than 50 enterprise zones in Oregon, including four in Central Oregon. House Bill 2429 would put a new requirement on enterprise zones. It requires that construction projects worth $5 million and getting tax cuts in enterprise zones would have to follow Oregon's prevailing wage law. That means, in a nutshell, that they would have to pay more to build or expand.”

(Editorial: Bill Says No to Business, Bend Bulletin, 2/12/2009)

…Expanding Regulation and Red Tape on Oregon Businesses…

“The governor's bid to limit Oregon's greenhouse gas emissions arrives before the 2009 Legislature at an awkward time. Manufacturing jobs are dropping. Electricity bills are rising. Powerful economic interests, including heavy industry and the state's biggest electric utilities, argue that Kulongoski's strategy could boost both of those trends.”

(Will Recession Kill Green Plans? Governor's Plan To Limit Emissions Could Lower Employment And Raise Power Rates, Critics Say, The Oregonian, Scott Learn, 1/18/2009)