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the facts on Measure 30

The fact is that the legislature's budget bill (HB 2152) would not cost Oregonians one (1) cent in new taxes because of all the federal tax cuts. Here is a table of how much federal tax cuts and one time tax surcharges will be for Oregonians if Measure 30 passes.
Measure 30 ELIMINATES SUV tax breaks!
Effect of surcharge on single taxpayers.

Annual Income Status: Oregon Tax Increase $/o (Federal Tax Cut $/mo) (Overall Tax Cut $/mo)

Less than $10,000 Single: $0 ($0.42) ($0.42)
$10,000--$20,000 Single: $0.50 ($3.42) ($2.92)
$20,000--$30,000 Single: $2.58 ($5.08) ($2.50)
$30,000--$40,000 Single: $6.67 ($10.33) ($3.66)
$40,000--$50,000 Single: $10.00 ($21.33) ($11.33)
$50,000--$70,000 Single: $15.08 ($47.08) ($32.00)
$70,000--$100,000 Single: $26.42 ($89.83) ($63.41)
$100,000--$200,000 Single: $49.42 ($209.00) ($159.58)
$200,000 and above Single: $205.83 ($1,248.33) ($1,042.50)



Effect of surcharge on a couple

Annual Income Status Oregon Tax Increase $/mo (Federal Tax Cut $/mo) (Overall Tax Cut $/mo)

Less than $10,000 Joint $0 $0 $0
$10,000--$20,000 Joint $0 ($1.42) ($0.42)
$20,000-$30,000 Joint $0.58 ($7.75) ($7.17)
$30,000--$40,000 Joint $1.08 ($18.67) ($17.59)
$40,000--$50,000 Joint $3.17 ($29.00) ($25.83)
$50,000--$70,000 Joint $8.17 ($39.58) ($31.41)
$70,000--$100,000 Joint $17.83 ($100.58) ($82.75)
$100,000--$200,000 Joint $39.17 ($191.92) ($152.75)
$200,000 and above Joint $194.33 ($921.50) ($727.17)

Measure 30 will:
Limit Seniors' Medical Expense Deduction: Currently, Oregonians 62 years old and older get to deduct every dollar of their medical expenses from their state taxes, as opposed to amounts above 7.5% of adjusted gross income for all other taxpayers. HB 2152 (and therefore Measure 30) raises the age threshold for this deduction to 65 over three years and phases out the deduction for those with incomes above $50,000 for a single taxpayers and $100,000 for a couple. This change will raise $86.5 million.

Who pays: Persons aged 62 to 65 and those 65+ with incomes above $50,000 (single) and $100,000 (joint).

Measure 30 will:
End Bonus Depreciation for Business Owners Who Buy SUVs: This change limits expense and depreciation deductions for SUVs, with exceptions for vehicles used in farming, timber and construction. It raises $9 million.

Who Pays: Business owners who buy SUVs.

Measure 30 will:
Repeal the Extraterritorial Income Exclusion: This repeals a special exemption for corporate income from foreign sales corporations, raising $36 million.

Who Pays: Foreign sales corporations.

Measure 30 will:
Reduce Corporate Tax Credits by 20% for Three Years: HB 2152-B reduces tax credits for corporations for three years, but exempts affordable housing credits and lets corporations carry-forward their unused credit to future years. As a result, it raises only $7.7 million net by the end of the 2005-07 biennium.

Who Pays: Corporations that benefit from tax credits.

Measure 30 will:
Raise the Corporate Minimum Tax: This is the most significant tax reform of the entire legislative session. Remember when PGE/Enron paid only $10 in taxes last year? Under this provision, its minimum tax would be $5,000. All C-corporations would have to pay minimum taxes ranging from $250 to $5,000 based on their in-state sales. All S-corps would pay $250 to $500, based on their in-state sales. All this would add up to $149.7 million over the nest two biennia.

Who Pays: All Oregon businesses.

Measure 30 will:
Reduce Preferential Treatment of Corporate Dividends: This change reduces by 50% the dividend subtraction now applicable to dividends received by one corporation from another. Although only temporary, through 2005, it raises $60.3 million over three years.

Who Pays: Corporations that receive corporate dividends.

Measure 30 will:
Reduce Discount for Early Property Tax Payments: Cuts the 3% discount for early property tax payments to 1.5%, beginning in 2004. This will raise $43 million in the last year of this biennium from homeowners (56%) and businesses (44%).

Who Pays: Homeowners will pay an average of $30 to $40 per year in additional property taxes; businesses will pay widely varying amounts.

Measure 30 will:
Establish a Long-Term Care Provider Tax: This tax on nursing homes will also generate additional federal matching funds that will help the industry. It will raise $12.5 million for the state's general fund in 2003-05.

Who pays: Nursing homes.


Other portions of HB 2152-B will extend a ten-cent-a-pack tax on cigarettes that would otherwise sunset next year and continue to use the proceeds for the Oregon Health Plan and assess a provider tax on managed care health plans to fund continued hospital coverage for OHP enrollees. The provider tax will generate an additional $1.50 on the dollar in new Medicaid funds from the federal government, which will go back to the hospitals in added payments.
Measure 30 ELIMINATES SUV tax breaks! 01.Jan.2004 17:17

Measure 30 ELIMINATES SUV tax breaks!

Measure 30 ELIMINATES SUV tax breaks! I think thats the absurd national one that gives tax breaks to SUVs greater than 6000 pounds weight, like the Excursion and Hummer for business owners. Got my vote!
A friend of mine just rolled her new SUV on a snowy road. HAHAHAHA Luckily she was unhurt. She thought she was invincible. Typical overconfident SUV driver.
They are too stupid to realize that 4 wheel drive doesnt help on ice or braking on ice and their heavy weight makes them harder to stop.
Another friend rolled hers on an icy bridge when it slipped sideways on the ice then hit the pavement and rolled. She was unconscious in the hospital for 4 days.

I support measure 30 02.Jan.2004 11:15

skate

and will be voting for it.

But, let's be honest here ... to say that a state tax increase isn't really a tax increase because it's happening at the same time as a federal tax decrease is bogus.

This is a tax increase ... worthwhile, but an increase nonetheless.

Whose is the author? 03.Jan.2004 19:55

David Delk daviddelkatafd@aol.com

Great facts. This word needs to get out there. I am working on some informational flyers and would like to use this material but hesitate to do so without knowing who the author is. Or where to verify the information.