Oregon Public Broadcasting

Two tax increases passed their first legislative hurdle in Salem Thursday.  As part of a plan to bridge a $4 billion budget gap, Oregon Democrats are proposing about $800 million in new taxes.

The first measure would raise taxes on corporations.  The second targets households earning more than a quarter million dollars a year.  

The bills won approval from the House Revenue committee on a party line vote.  Republicans like Representative Scott Bruun said a recession is the wrong time to consider tax increases.

Scott Bruun: “This will hurt Oregon jobs.  This will hurt Oregon competitiveness.  In a best case scenario, this will delay our recovery.”

Democrats have just enough votes to pass the tax hikes without Republican support.  But in a party line vote, if even one Democrat breaks ranks, the measures fail.