I am disappointed to report that the Oregon House just voted for the massive corporate tax break that we warned about last week.
The good news is that you made a difference! While the bill swept through the Senate with few objections, YOUR calls and emails helped galvanize opposition in the House to yet another corporate giveaway for Wall Street. Because progressives fought back, it will be harder for the big business lobby to push through future tax breaks.
Accountability Report Card
We would like to thank the following legislators for having the courage to stand up to the powerful big business lobbyists and save our tax dollars for improving education and health care.
Democrats
Phil Barnhart
Peter Buckley
Ben Cannon
Michael Dembrow
Margaret Doherty
Chris Garret
Sara Gelser
Mitch Greenlick
Chris Harker
Paul Holvey
Tina Kotek
Jefferson Smith
Carolyn Tomei
Brad Witt
Republican
Kim Thatcher
*Brian Clem (D) did not vote.
We join the Oregon Center for Public Policy in calling on Governor Kitzhaber to veto this misguided tax break for Wall Street.
Governor Should Veto Subsidy of Wall Street and Wealthy Investors: Statement on SB 817 by OCPP executive director Charles Sheketoff (PDF)
The Oregon House has approved a subsidy for Wall Street and wealthy investors that will take $78 million away from schools, health care and other vital services in the years ahead.
The New Market Tax Credit (NMTC) created by SB 817 will subsidize projects that will occur anyway. Investors already collect a federal NMTC, and nothing in the bill prevents Oregonians' tax dollars from going to projects that will happen anyway under the federal program. Oregon historically has had more than its fair share of investments using the federal tax credit program, so there is no need spend state tax dollars on the same investments.
Despite all the talk about creating jobs, the bill does not attach job standards to receipt of the subsidy. Jobs are thus an empty promise.
Nothing in the bill matches the rhetoric that investments will be made in small businesses. The bill has no provision limiting the investments to small businesses.
Worse, the legislation allows investors to carry their unused tax credits forward indefinitely. This is the only tax credit program with such a generous provision and sets a bad precedent.
The Governor should show the legislature how to be fiscally responsible and veto the misguided measure.