INFORMATIONAL MEETING

 

TAPE 33-34, A-B

 

HOUSE REVENUE COMMITTEE

FEBRUARY 7, 2003†† 8:30 AM†† STATE CAPITOL BUILDING

 

Members Present:††††††††††† ††††††††††† Representative Lane Shetterly, Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Joanne Verger, Vice Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Phil Barnhart

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Vicki Berger

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Mark Hass

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Max Williams††††††††††† ††††††††††††††††††††††† †††††††††††

 

Members Excused:††††††††† ††††††††††† Representative Wayne Scott, Vice Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Elaine Hopson

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Pat Farr

††††††††††††††††††††††† †††††††††††††††††††††††

 

Witness Present:††††††††††† ††††††††††† Chuck Sheketoff, Oregon Center for Public Policy

††††††††††††††††††††††† ††††††††††† ††††††††††† Rich Peppers, Service Employees International Union, Local 503

††††††††††††††††††††††† ††††††††††† ††††††††††† Tim Nesbitt, Oregon AFL-CIO

††††††††††††††††††††††† ††††††††††† ††††††††††† Laurie Wimmer Whelan, Oregon Education Association

††††††††††††††††††††††† ††††††††††† ††††††††††† Ralph Groener, AFSCME

††††††††††††††††††††††† †††††††††††††††††††††††

††††††††††† ††††††††††† †††††††††††††††††††††††

 

Staff Present:††† ††††††††††† ††††††††††† Paul Warner, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Tara Lantz, Committee Assistant

 

TAPE 33, SIDE A

003

Chair Shetterly

Calls meeting to order at 9:05 am.

 

 

 

006

Shetterly

Refers members to Governing Magazine article and suggests the committee read the entire magazine which compares the tax structures of every state.

 

 

 

034

Chuck Sheketoff

Briefly discusses mission of the Oregon Center for Public Policy.

 

 

 

040

Sheketoff

Refers members to Boom, Bust, and Beyond: The State of Working Oregon 2002. Exhibit 1.

 

 

 

046

Sheketoff

Refers members to Things Donít Look Different Here. Exhibit 2.

 

 

 

050

Sheketoff

Refers members to Cutting Capital Gains Taxes Will Hurt, Not Help, Oregonís Economy. Exhibit 3.

 

 

 

056

Sheketoff

Refers members to article on Oregon State and Local Taxes in 2002. Exhibit 4.

 

 

 

058

Sheketoff

Refers members to Low Income Tax Guide Brochure. Exhibit 5.

 

071

Sheketoff

Discusses Oregonís economic growth and growth in poverty in the 1990ís, pointing to graphs in Boom, Bust, and Beyond and Oregon State and Local Taxes in 2002. Exhibits 1, 4.

 

Questions and answers interspersed.

 

 

 

127

Sheketoff

Discusses Oregonís current economic situation.

 

 

 

159

Sheketoff

Advises committee to reverse automatic reconnect.

 

 

 

183

Sheketoff

Advises committee to maintain inheritance tax laws.

 

 

 

253

Sheketoff

Advises committee to keep the capital gains tax.

 

 

 

283

Sheketoff

Advises committee to expand the earned income credit.

 

 

 

296

Sheketoff

Advises committee to increase the corporate minimum tax.

 

 

 

333

Sheketoff

Advises committee to adopt a corporate tax disclosure law.

 

 

 

399

Rep. Barnhart

Asks about Sheketoffís view on the economic impact of taxes.

 

 

 

435

Sheketoff

Gives several examples of corporations choosing to locate for reasons other than taxes and stresses that Oregon is ďat the whim of the National economy.Ē

 

Questions and answers follow.

 

TAPE 34, SIDE A

091

Rich Peppers

Gives broad overview of ideas to be presented by the panel and testifies that businesses locate because of public infrastructure rather than tax structure. Refer to written testimony. Exhibit 6.

 

 

 

201

Tim Nesbitt

Compares Oregon state and local taxes to other states and discusses shift in tax burden from businesses to working families. Exhibit 7.

 

 

 

275

Nesbitt

Cautions against major tax reform, such as a sales tax, claiming it will not be any more stable than the current system and will be more regressive.

 

 

 

295

Nesbitt

Gives testimony supporting equalizing the business tax rate to the personal income tax.

 

 

 

306

Nesbitt

Recommends looking at a statewide property tax and eliminating tax expenditures.

 

Questions and answers follow.

 

 

 

391

Laurie Wimmer

Whelan

Refers members to written testimony (Exhibit 8), ECONorthwest report: K-12 Spending and the Oregon Economy (Exhibit 9), and a Discussion of the Effect of Tax Expenditures on Business Investment (Exhibit 10).

 

 

 

434

Whelan

Discusses impact of K-12 spending on the Oregon economy and jobs pointing to graphs in K-12 Spending and the Oregon Economy. Exhibit 8.

 

TAPE 33, SIDE B

045

Whelan

Recommends comprehensive tax reform, retiring existing tax expenditures, resisting the pressure to create more tax expenditures, repealing the rolling reconnect with the Federal Government, and providing full funding for public schools.

 

108

Ralph Groener

Expresses concern over the lack of county assessors, which leads to less revenue coming in to the state, as property is not put onto the roll in a timely fashion

 

 

 

160

Groener

Recommends building economic development corridors.

 

 

 

172

Groener

Recommends revisiting property tax caps from Measure 50.

 

 

 

191

Groener

Suggests the committee draft a Memorial for Congress saying that instead of creating tax cuts, the Federal Government should put the money into creating jobs that will help to rebuild public infrastructure.

 

 

 

239

Groener

Recommends raising the gas tax.

 

 

 

260

Groener

Strongly recommends that Oregon build industrial lands and streamline the process of building them.

 

 

 

307

Groener

Testifies that his most important message is that the public needs to be educated about Oregonís tax system in order for them to vote in support of any changes.

 

 

 

347

Rep. Hass

Asks about base closure commission.

 

Discussion follows.

 

 

 

397

Rep. Shetterly

Asks for clarification on the meaning of comprehensive tax reform.

 

Discussion follows.

 

 

 

460

Rep. Verger

Asks about enterprise zones.

 

Discussion follows.

 

TAPE 34, SIDE B

061

Rep. Berger

States that she admires Groener for trying to educate Oregonians budget and revenue issues.

 

 

 

074

Rep. Shetterly

Meeting adjourned at 10:32 am.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.       Chuck Sheketoff, Boom, Bust, and Beyond: The State of Working Oregon 2002, 120 pp.

2.       Chuck Sheketoff, Things Donít Look Different Here, 15 pp.

3.       Chuck Sheketoff, Cutting Capital Gains Taxes Will Hurt, Not Help, Oregonís Economy, 15pp.

4.       Chuck Sheketoff, Oregon State and Local Taxes in 2002, 2pp.

5.       Chuck Sheketoff, Low Income Tax Guide Brochure, 2pp.

6.       Rich Peppers, Written Testimony, 3pp.

7.       Tim Nesbitt, Written Testimony, 12pp.

8.       Laurie Wimmer Whelan, Written Testimony, 3pp.

9.       Laurie Wimmer Whelan, K-12 Spending and the Oregon Economy, 43pp.

10.   Laurie Wimmer Whelan, A Discussion of the Effect of Tax Expenditures on Business Investment, 2pp.