March 2007: Capitol gains
WHO'S WINNING AND LOSING IN SALEM
The glow is gone; it’s down to business
If you’re still basking in the sunshine moment of last
month when the state’s major business groups spoke with
one voice to the Oregon Senate Revenue committee, it’s
now safe to take off your shades. It was a historic scene,
sure. But even as the Oregon Business Association, Associated
Oregon Industries and high-tech lobby AeA, among others, stated
their support for the suspension of the corporate
“kicker” tax refund and diverting the $275 million
into a reserve fund, there were some fractures and grumbling
below the surface. A look at this and other harsh realities as
the Legislature rolls into a third month… CAPITAL TO BE GAINED?
As the hearings about the corporate kicker got under way, House
Minority Leader Wayne Scott (R-Canby) proposed affixing capital
gains and inheritance tax reductions to suspension of the
corporate kicker. One of AOI’s lobbyists also voiced
support for tax reductions as part of the kicker suspension.
(The kicker is money “kicked back” to companies and
individuals when state tax revenues are more than 2% better
than projections.) RENEWABLE ENERGY, RENEWED BATTLE
Last session, a bill promoting biofuels broke down after
partisan bickering involving business interests. But with
similar legislation moving swiftly this year, renewable energy
for electricity is the issue that’s causing some division
in the Oregon business community. This, even after lengthy
discussions over the past year in the governor’s
renewable energy working group, which included industry
representatives, power companies, public interest groups and
clean-energy proponents. Have an opinion? E-mail feedback@oregonbusiness.com |
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Neither Democrats in the Legislature
nor Gov. Ted Kulongoski favor linking tax cuts to the kicker
discussion. “The governor is more interested in talking
about that as part of a broader tax reform discussion down the
road,” says Kulongski spokesman Jake Weigler. “As
it stands, changing the kicker would already be the most
significant tax reform in 20 years.” The linked tax cuts
briefly took on some intrigue because the kicker is enshrined
in the state constitution and any changes would require a
two-thirds vote in both bodies. Democrats holding the majority
in both houses still needed some votes from Scott’s
caucus to pass the suspension.
