Voter education forum informs on ballot measures

State economist Tom Potiowsky made sure that the crowd of around 100 people attending last Friday’s voter education forum knew his purpose was to be a neutral source in the debate on Measures 66 and 67.

“If you perceive that I favor one side over another in my presentation, let me assure you that it is just a figment of your imagination,” Potiowsky said, drawing laughs from the audience in a rare lighthearted moment of the panel discussion.

The forum had a serious purpose and in two weeks, Oregonians will cast their ballots for Measures 66 and 67, which would respectively increase the taxes for high-income individuals and corporations.

The PSU Alumni Association, in collaboration with ASPSU, spearheaded the event that included a panel of experts, including Potiowsky and two PSU professors, Dr. Richard Clucas of the political science department and Dr. Anthony Rufolo of urban studies and planning.

The evening started with an introduction by forum moderator and Oregon Chief Justice Paul De Muniz, who explained in neutral terms the effect of a “yes” and a “no” vote on either measure. De Muniz’s speech was followed by a talk from representatives from two opposing organizations, Yes on 66 & 67, and Oregonians Against Job-Killing Taxes.

According to Joe Cortright from Yes on 66 & 67, Measure 66 will only affect individuals who make $125,000 or more and households with a total income of at least $250,000.

“That’s 3 percent of Oregon households, the other 97 percent won’t be affected if these measures pass,” Cortright said, “These measures keep vital services in place. If they don’t pass, the legislature is faced with a $472 million hole in our budget.”

Cortright also said the corporate tax increase that would result from the passage of Measure 67 wouldn’t affect corporations as much as some previously thought, because companies can claim the state tax amount as a deduction in their federal taxes, thus lowering their federal tax.

“Oregon has the third-lowest corporate tax in the nation right now,” Cortright said. “After Measure 67 is passed, we will have the fifth-lowest in the nation.”

For Bob Wiggins, representative from the Oregonians Against Job-Killing Taxes campaign, the issue is not about Oregon’s budget hole.

“We have an out of control government spending problem, it is not about the $10 corporate minimum tax,” Wiggins said.

He also favors an entire restructuring of the state system. He said raising taxes would discourage corporations from doing business in the state.

According to the Center for Public Policy, in 2006, 63 percent of all corporations in Oregon paid only $10 in income tax. Measure 67 aims to increase the minimum tax to $150.

ASPSU President Jonathan Sanford asked Wiggins what should be done about the Oregon tax system, to which Wiggins replied, “First, vote no. I understand the problem, but this isn’t going to fix the problem.”

Potiowsky explained that raising taxes and cutting expenditures are, at least in economic theory, both harmful to the economy. He said there is no clear answer on which method is least harmful, but that cutting expenditures is likely more harmful to the economy than raising taxes.

“The economy will be harmed by the lack of public service,” Potiowsky said.

Rufolo said that the state’s migration pattern shows people who move to Oregon do so for a variety of reasons, with family and friends being the number one reason, followed by quality of life and jobs. Taxes are not of great concern to people moving here.

“If Measures 66 and 67 pass, it means the state won’t have to find new means to balance the (budget),” Rufolo said. “If they are defeated, the state must find some other way to cover the hole.”

Ballots were mailed to registered Oregonian voters on Friday, Jan. 8, and are due Tuesday, Jan. 26.
 

The text of Measure 66

YES vote:

– Income tax increases by 1.8 percentage points for individuals earning $125,000 and for households earning a combined $250,000 for households.

– Income tax increases by 2 percentage points for individuals earning $250,000 and for households earning a combined $500,000.

– Eliminates income taxes on the first $2,400 of unemployment benefits received in 2009.

– Raises an estimated $472 million for general fund (which pays for such services as education, health care and public safety).

NO vote:

– Rejects all proposed income tax increases and exemptions.

– Leaves $472 million missing from general fund.

Ballot Measure 67

YES vote:

– Raises corporate minimum tax to $150 or .1 percentage points of corporations with greater than $500,000 in annual revenues, whichever is greater.

– Raises tax rate paid by some corporations by 1.3 percent.

– Increases some business filing fees.

– Raises an estimated $255 million for general fund.

NO vote

– Retains current $10 minimum corporate tax.

– Rejects all proposed increases in corporate profit taxes.

– Leaves $255 million missing from general fund.