Here comes the Oregon sales tax again
Governor Retread is ready to push the button.
But before you start yelling "Sales tax!" keep in mind that this is but the first step in what could be a lengthy effort to find common ground among a broad swath of interest groups, including business, labor and local governments.
Hey, "reporter." Save the spin for the opinion page. This is all about a sales tax:
Kitzhaber has made it no secret that he supports a broad-based consumption tax that would snag more money from tourists and hit the "cash economy" that often avoids taxes in the state, Robinhold said.
Simply: Sales tax.
Comments (24)
The tourists pay already at every business that they support. Those employees income taxes and the business income taxes that flow to the states coffers.
This fantasy that tourists don't contribute is just flat stupid.
And the mantra that a sales tax is our salvation to the states money problems ?
Bull, look at places how many states that use it and the problems they have making budget.
Posted by tankfixer | September 12, 2012 9:09 PM
Those employees income taxes and the business income taxes that flow to the states coffers.
This fantasy that tourists don't contribute is just flat stupid.
In most states, the tourists pay the indirect taxes you're talking about, plus retail sales taxes.
Posted by Jack Bog | September 12, 2012 9:14 PM
Would a sales tax with the combination of decreasing income taxes be a bad thing for Oregon?
Posted by ws | September 12, 2012 9:41 PM
I'd be for a sales tax if they dropped the income tax all together.
Posted by Anthony | September 12, 2012 10:04 PM
If the City Council can put fluoride in the region's water supply because Mark Weiner told them to, why would Dr. No need to build public consensus for a consumption tax?
Just get the Legislature to approve a bill authorizing a sales tax, sign it, and start counting the money.
The Supremes will greenlight it, because their pensions require fiscal solvency. And they're the least likely to get voted out of office.
Posted by Mister Tee | September 12, 2012 10:18 PM
I seem to recall Washington pols lamenting their lack of income tax. They say if only they had that, then the state's fiscal house would be in order.
Seems to me it'll never be enough. I'm not saying taxes are a bad thing, they are the price of civilization, but c'mon. No matter how much they get, it's never enough, and they always want more.
Posted by Roy | September 12, 2012 10:26 PM
I'd consider a sales tax if it would replace the income tax so it'd be revenue neutral. And if it had a % cap. Two things Kitz or any other pol would never agree to.
Kitz doesn't want a sales/consumption tax. He wants more taxes, period. He will always want more, more, more. Even after we get a sales tax... And he increases it beyond 5%, then past 10%, even beyond 15%. More, more, more.... Never enuf!
Posted by Harry | September 12, 2012 10:29 PM
I lived in New Jersey when the retail sales tax came in. The spiel: low rates, temporary, generous exemptions for the essentials of life, and all the money for the schools. All four were proven untrue within a decade or so.
Milwaukie MAX is $250 million of state money, minimum. Until they cut out that type of crap, they'll never get any smart person's vote for any tax increase, for anything.
Posted by Jack Bog | September 12, 2012 10:36 PM
In the early 90's the general fund was comprised of almost equal parts Corporate Income Tax and Personal Income tax. In 2009 the split was Corporate Income Tax 7%, Personal Income Tax 84%.
Posted by Dave | September 12, 2012 10:42 PM
If it's revenue neutral why would we be doing it at all ?
Not that I believe in one minute that it would stay that way, the planners of the world know better how to spend your money that you do and would soon be lobbing to hike the income tax a tad bit of add another .25% to the sales tax. As Jack points out in many places with a sales tax the tourists pay it and the indirect taxes.
Posted by tankfixer | September 12, 2012 10:52 PM
"Here comes the Oregon sales tax again"
Here goes the sales tax d.o.a. again.
Posted by Tenskwatawa | September 12, 2012 11:26 PM
Oregon revenue-hunters want to get in on this action, at least:
http://bits.blogs.nytimes.com/2012/09/12/daily-report-amazon-will-collect-sales-tax-to-expand-boldly/
Posted by Mojo | September 13, 2012 12:15 AM
I'd consider a sales tax if it would replace the income tax so it'd be revenue neutral. And if it had a % cap.
The state may well cap it. But that doesn't stop cities and counties from imposing local sales taxes on top of the state's amount - and in fact this is a tremendous temptation simply because the infrastructure is already in place to collect it.
Posted by John Rettig | September 13, 2012 12:21 AM
Speaking of tourists and sales taxes, in Oregon the lack of a sales tax is a significant factor in our economic well being. Tourists, travelers and people living close by in neighboring states come here to purchase tax free goods from our retailers. Just lately there has been a significant increase in liquor sales and corresponding state revenue because of tax inequities. The tax savings on purchasing small expensive portable goods such cameras, watches, jewelry and designer clothing often justifies people flying in for a weekend, spending time and money in local hotels and restaurants. As an example, if someone from California comes here to purchase a $15k Rolex watch they save about $1200. That is a lot more than the airfare and a weekend stay at the Nines cost. The pro sales tax people turn a blind eye to these factors.
Posted by John Benton | September 13, 2012 2:49 AM
"And once you vote for the lottery, we will never have to worry about school funding again."
Plus what Jack said in regards to NJ.
Posted by Kent Mulder | September 13, 2012 2:59 AM
I saw a LO City Council meeting on TV last week where Carlotta Colette, a Metro Councilor and Chair of JPACT, talked about ODOT hearings concerning the high speed train from Eugene to Portland. Now THERE'S a project that no one is begging for, but the state is actively pursuing this with our tax dollars. Are you kidding me? And the Gov "needs" more? For this junk?
The federal matching dollars may have started it, but the state could just walk away, just say NO. The pols are addicted to public money, You just can't reason with addicts - it's a form of insanity that can only be treated with abstinance, and in this case, it's separating their hands from our pockets.
Posted by Nolo | September 13, 2012 3:49 AM
It not a "Sales Tax", it's a total new concept now it is a "Tax on Sales"
Posted by phil | September 13, 2012 6:50 AM
If he stops with the canard that a sales tax will make revenues more stable, I might listen. But it sure doesn't make Cali's tax revenues more stable having a tax of each flavor.
Then again, we can dig up Sizemore's old initiative to add a sales tax if we drop the income tax (a la Washington). I'd go for that.
Posted by Steve | September 13, 2012 9:30 AM
The best thing about instituting sales tax is that the consumers don’t keep track of how much tax they pay each year. Therefore, nobody will complain about high taxes. Better yet, people with low incomes will start paying their fair share.
Posted by John | September 13, 2012 9:48 AM
ws, Shirley, you jest. Lowering taxes? HAH! and again HAH!
Tax rates and specific taxes are nearly impossible to cut. Govs and legislators like to spend tax money.
I trust you have noticed that.
Posted by Sam L. | September 13, 2012 11:13 AM
Ashland already has a sales tax to gouge the tourists. Besides way back when, wasn't the Oregon income tax sold to the public as an offset to the high propery taxes, to keep them from going even higher? It's nothing about anything except governments can't live within their means, thus taxes are their drug of choice as it were.
Posted by Rusty | September 13, 2012 7:29 PM
Long Live Craigslist. Bartering is the only way to do business! No Sales taxes at the transaction!
Posted by Greg | September 14, 2012 3:08 AM
Bartering is the only way to do business! No Sales taxes at the transaction!
Just because many people fail to pay sales tax on barter transactions doesn't mean it is lawful.
For example, if you trade your boat for a snowmobile, your purchase price of the snowmobile is the value of the boat that you traded. If the values of the items traded are different, the tax due from each party will also be different. Tax Bulletin ST-860 - State of New York
Posted by John | September 14, 2012 8:28 AM
Perhaps Oregon can be the first entity to tax themselves into prosperity?
Posted by Mister Tee | September 14, 2012 8:36 AM