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1 Jack Mountjoy & Joseph Henchman, The Dam Bursts in the Beaver State: Oregon's Wave of Tax Increases and New Spending 1 (2009)

handle is hein.taxfoundation/ffbhfxz0001 and id is 1 raw text is: FISCAL
FOUNDATIONF                              SA
July 2009FACT
No. 175
The Dam Bursts in the Beaver State:
Oregon's Wave of Tax Increases and New
Spending
By Jack Mountjoy and Joseph Henchman
Introduction
Staring at a multi-billion dollar budget shortfall, Oregon state legislators recently approved more
than $1 billion in tax increases. Most of the new revenue will come from higher tax rates on
personal income. But the legislature's Democratic majority was not content with mere budget
patching, instead pushing through large new spending programs and more taxes to fund them.
Higher taxes on gasoline and vehicle registration will fund new transportation projects, while
new taxes on hospitals and health insurers will be used to expand the state's health care program.
And although proposals to raise sin taxes failed to pass, including an astronomical 1,800% rise
in the beer tax, legislators did manage to approve a tax increase on all non-cigarette tobacco
products.
All of these new tax provisions await Governor Ted Kulongoski's (D) assured approval, but their
ultimate fate may rest with the people of Oregon. If citizen groups can collect enough signatures
to challenge the legislation, a statewide vote early next year could send lawmakers scrambling
back to the chambers to rethink the state's fiscal future.
Top Personal Income Tax Rate Leaps to Highest in the Nation
With the passage of HB 2649, Oregon's high-income earners will find themselves sending a

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