Oregon Senate Week in Review

Below is the weekly report from the Senate for 9-13 Feb 09. You may be interested in this [YouTube] link to my speech opposing HB 2157, the federal tax disconnect and de facto tax increase on Oregon’s unemployed.

Regards,
Brian J. Boquist
State Senator (SD-12)

Senate Week in Review
Introduction: The Senate passed a $96 million tax increase with another major fee increase scheduled next week. Despite multiple calls to freeze state spending, out-of-state travel, new programs, and new capital spending nothing was done to curb deficient spending yet in Salem. Further calls to address the location of $19 billion in fees from the Other Funds Budget have been unsuccessful.

Floor Actions: HB 2157 passed 17 to 13 with one Democrat joining the Republican minority. So, next week Oregon’s unemployed will start paying an additional $15 million in taxes on their unemployment benefits. The Democrat led bill raises state government revenue by $96 billion by disconnecting with the federal tax code. Additionally, the bill will no longer allow state credit for special expensing and depreciation as proposed by President Obama and the Democrat Congress.

Committee Actions: Judiciary reviewed bills on increasing penalties on horse abandonment, cockfighting and other animal crimes. Environment & Natural Resources passed out SB 76 which allows for the collection of $180 million in electric surcharges to pay for the removal of four dams on the Klamath River. The bill may make Oregon liable for another $1.5 billion in removal and clean up costs. Your Senator voted NO as the cost liability was to great, and no know power replacement source was identified.

Legislature 101: The Floor debate on this week’s tax increase was quite lively as one Democrat Senator called a Republican a liar for claiming HB 2157 was a tax increase. Technically, on the day of the vote the bill was revenue neutral but once President Obama signs the law passed by Congress on Monday the tax increases happen in Oregon. The bill was made a Special Order of Business in order to get it passed this week before Congress and the President acted thus they could claim it was not a tax increase until next week. If it looks like a duck, walks like a duck, sounds like a duck then it is a tax increase.