Republican leader urges relief for Oregonians facing unexpected tax increase

February 09, 2009

HOUSE REPUBLICAN LEADER BRUCE HANNA

FOR IMMEDIATE RELEASE: February 9, 2009
CONTACT: Nick Smith, 503-986-1351

REP. HANNA URGES LEGISLATURE TO PROVIDE RELIEF FOR OREGONIANS FACING UNEXPECTED TAX INCREASE

SALEM— House Republican Leader Bruce Hanna (R-Roseburg) today urged the Legislature to provide relief to Oregonians facing an unexpected tax increase related to 2008 rebate checks issued by the federal government. The rebate checks constitute a reduction in federal income taxes, requiring Oregonians to increase their taxable state income by the amount of their rebate checks.

“Oregonians have been hit with an unexpected $53 million state tax increase that must be paid within the next few months,” Rep. Hanna said. “Many states chose to proactively protect taxpayers from the implications of the 2008 federal rebates. While Oregon did nothing in 2008, there’s an opportunity this session to provide relief for taxpayers by allowing them to deduct the amount of this tax increase from their 2009 state returns.”

The tax increase hits low- and middle-income Oregon taxpayers the hardest. According to the Legislative Revenue Office, individuals earning $20,000 to $40,000 and families earning $40,000 to $60,000 per year in taxable income will pay the largest share of the tax increase.

“As Oregon’s economy is continuing to deteriorate, the state government is hurting those who need help the most,” Rep. Hanna said. “By taking $53 million out of Oregonians’ pockets, families will have less money to make ends meet. They will also have less money to spend in their communities.”

Rep. Hanna said the tax increase is another example of how Oregon has not helped the federal government’s efforts to stimulate the state’s economy.

“We are seeing a new trend in Salem; the federal government tries to provide relief, but Oregon’s leaders undermine those efforts,” Rep. Hanna said. “Oregonians witnessed it again last week, when House Democrats voted to deny Oregonians state tax incentives that are featured in President Obama’s stimulus package. We need to work with, not against, our federal partners in boosting the economy and creating jobs.”
###

Back to Oregon Press Releases