Oregon voters took a sharp turn to the left, shrugging off their past defiance
of refusing to pass anything that resembled a tax increase.

Measures 66 and 67 – that increase taxes for high-income earners,
corporations and some businesses – passed by wide margins in the Jan. 27
election.

Late returns showed both measures enjoying a comfortable 54 percent to 46
percent edge statewide, with Clackamas County turning in a vote of 50-50 on
the hotly contested issues.

Drastic legislative cuts may have been avoided with the passing of the
measures. Legislative leaders estimated a $727 million shortfall if the
measures failed.

“Cautious relief,” was the initial reaction of Oregon Trail School District
Superintendent Shelley Redinger. “I am pleased that Oregonians saw the need
and showed their support. A defeat of both measures would have created a
deficit of more than $2 million for the 2009-2011 biennium.”

Those sentiments were not shared by opponents. The Oregon Small Business
Coalition saw the results as a vilification of the very businesses that will be
essential to economic recovery.

“OSBC believes our economy will suffer and the tax structure will actually
harm small businesses,” the coalition wrote in a Jan. 27 release. “The
Legislature provided the people with a false choice – education and public
service funding versus jobs and economic growth. In fact, we need both.”

Measure 66 will raise taxes on wage earners making $125,000 per year as
individuals, and $250,000 for couples.

Measure 67 hikes the minimum tax on corporations, increases the tax rate on
upper-level profits and affects some small businesses currently paying the
minimum $10 a year in taxes.

“The passage of the measures will bring a level of stability to the district,”
Redinger said. “However, we are concerned about Oregon’s economy and the
continued effect on public education.”

Redinger went on to remind voters that the district already cut more than $3
million from the present 2009-2010 budget.

“A budget task force has been meeting since fall, reviewing revenue, expenses
and alternatives for addressing possible future shortfalls,” she said. “The task
force will continue to meet to address economic concerns.”

The passing of the two measures is the first statewide-approved income tax
increase since the Hoover administration in the 1930s.

Multnomah County led the victory, approving the two measures by a
whopping 2-1 margin.