Oregon Public Broadcasting

A $730 million budget balancing tax package is suddenly in jeopardy in Salem.  One of the tax bills failed on the floor of the Oregon Senate Wednesday.  The surprise development came down to one vote.  Salem correspondent Chris Lehman reports.

Legislative leaders say the money is needed to head off deeper cuts to human services, education and public safety.

The first measure would raise taxes on corporations.  The second would raise taxes on households earning more than $250,000 a year.  

Tax hikes need approval by a three-fifths majority in the Legislature.  That’s exactly how many votes Democrats have in the Senate.  But one Democrat, Senator Mark Hass, crossed the aisle and voted “no” with the Republicans.  

Hass said he wanted the tax increases to expire after the current recession is over.

Sen. Mark Hass:  “I support this bill in the context of our economic emergency. But I do believe we need to make a small change in a Senate committee to fix it.”

Lawmakers voted to put the tax measures on hold. That means they can be brought back.  

Democratic Senate President Peter Courtney issued a written statement saying he was disappointed with the vote’s outcome.