Voters OK Tax Hikes On Wealthy, Businesses

PORTLAND, Ore. -- Voters approved tax increases for wealthy Oregonians and businesses in a decision that will generate $727 million in revenue.With 85 percent of the expected votes counted Tuesday night, both measures had 54 percent approval. FOX 12 political analyst Tim Hibbitts confirmed that Measures 66 and 67 passed.Measure 66 raises taxes on household income at and above $250,000 and $125,000 for individual filers. It also reduces income taxes on unemployment benefits in 2009.Measure 67 raises business taxes.The Oregon Legislature approved both tax increases last year, and business groups sponsored a referendum campaign to put them to a statewide vote.The campaign pitted public employee unions warning of cuts in schools and social services against many, though not all, of the state's business groups, who said the taxes would cost a state with 11 percent unemployment even more jobs.The most recent reports had labor outspending business in one of the state's most expensive issue campaigns."We know now that Oregonians heard the message of what these measures were about -- supporting the most vulnerable," said Elana Guiney, a spokeswoman for the pro-tax group Vote Yes for Oregon.The revenue from the new taxes, $727 million, is expected to account for about 5.5 percent of the general fund in the next two-year budget. Passage of the measures gives the state Legislature a breather when it goes into a month-long session starting Monday.The returns reflected Oregon's political split, with Portland and Multnomah County, a liberal bastion, supplying a large vote in favor, while rural counties and especially those in Eastern Oregon voting against.The results could give legislators in other states hints about whether they can ask taxpayers for help in repairing ravaged budgets.Approval of the two tax increases also ran counter to the state's history of turning down tax increases.But Democrats who have commanding majorities in the Legislature said they were careful to target the upper 2 percent of individual taxpayers and the businesses with the biggest sales, many headquartered out of state.In Salem, Pat McCormick said he opposed the tax increases and was disappointed."A lot of Oregonians need to realize that the person who signs their check gets affected by this and (it) could affect them in a different way," McCormick said. "I think this is very damaging to Oregon’s struggling economy and very difficult for a lot of employers to manage the additional costs."