Oregon lawmakers have proposed disconnecting the state’s tax code from parts of the federal code in order to retain some of the money which would be lost to tax breaks from House Resolution 1, the budget reconciliation bill passed last July.
However, people advocating for working-class Oregonians say the plan does not go far enough. The state budget faces a nearly $900 million shortfall due to recent federal tax changes and the new legislation would preserve close to a third.
Annie Naranjo-Rivera, executive director of the Oregon Working Families Party, said at a time when 340,000 Oregonians are facing lost or reduced SNAP benefits as well as cuts to Medicaid, state lawmakers need to do more.
“Do we choose to continue these policies which were handed down to us through H.R. 1?” Naranjo-Rivera asked. “Or are we going to have the moral conviction to make different policy choices to stand up for people who are going hungry and people who deserve leaders to fight for them?”
The proposal from state Democrats would use the money saved from eliminating three federal tax deductions to increase Oregon’s Earned Income Tax Credit for low-income Oregonians. Funds would also go toward a new credit for businesses adding new jobs in the state.
State Republicans argued the plan amounts to a tax hike for most residents.
Britt Conroy, political director for Ecumenical Ministries of Oregon, countered the state should not adhere to federal tax breaks primarily benefiting the wealthy. He said if Oregon does not disconnect further from the federal tax code and end long-standing state tax breaks for the wealthy, the state will not have enough resources to support families who need it.
“Our elected leaders need to be responsible to design policies that fit the needs of Oregonians,” Conroy contended. “Not simply copy what’s coming down from Congress, regardless of who’s in power in D.C.”
Naranjo-Rivera warned corporate interests in Salem are swaying lawmakers into a compromise which harms working families. She argued it is unfair to only point the finger at Republicans who supported H.R. 1.
“Democrats, what are you doing to stop these handouts to the ultra wealthy at a time when we’re asking families to go without food?” Naranjo-Rivera asked.
The bill had a public hearing last week, garnering about 500 written comments. It is currently in committee in the state Senate.
