Photo by Ellen Miller

Monday, March 11, 2013

Who’s Money is it any way?


On March 8, 2013 the House Revenue Committee held a hearing on Tax Expenditures, Tax Credits and Tax Deductions.  Prior to public testimony the committee heard from legislators, including House Speaker Tina Kotek, D-Portland.

Two freshman legislators, Reps. Shemia Fagan, D-North Clackamas County and Ben Unger, D-Washington County, followed and started a lively discussion with Revenue Committee members Reps. Cliff Bentz, R-Ontario, Jason Conger, R-Bend, and Vicki Berger, R-Salem regarding tax policy and who’s money is it?  The citizens of Oregon or the State bureaucracy?

The new members are calling for a review of all tax expenditures, credits and deductions, saying it was a motivating factor in their decision to run for office.  They are concerned that tax expenditures are going to the wealthy and Corporations while schools could benefit from more money.

This money was considered lost revenue that could go to schools, social services or any number of worthwhile projects. Another freshman legislator said that Oregon was “entitled” to these funds.

Veteran committee members pointed out that elimination of a deduction or credit is the same thing as a tax increase. The mortgage interest deduction, the largest single tax expenditure, was cited as an example of a possible tax increase if that deduction is eliminated or limited.

The Revenue Committee hearing demonstrated that there will be more spirited discussions of tax expenditures and who’s money it is. 

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