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Date: February 27, 2018
To: All League Members and Oregonians
From: Norman Turrill, LWVOR President
Chris Vogel, LWVOR Tax and Revenue Coordinator

Urge your Representative to disconnect Oregon from the pass-through business deduction included in the new federal tax legislation.

The Senate took action to disconnect from the federal tax code sections regarding the costly pass-through deduction for particular business owners (SB 1528 B). Read more in the latest LWVOR Legislative Report. Now the House needs to do the same. SB 1528 B has a public hearing and possible work session, Wednesday 2/28/2018 1:00 PM in the House Committee On Revenue where League will submit testimony. We anticipate it will then go to the House floor for a second reading then vote, likely on Friday.

Read more on the pass-through tax break impact for Oregon business owners.

Please call or email your representative with this message:

“It is difficult to justify why profits from pass-through businesses should be subject to lower tax rates than income from wages and salaries. Oregon can’t afford to lose an estimated $250 million in this budget period by connecting to this section of the federal tax code. Oregon continues to struggle to fund vital programs for education and early learning; safety net programs for vulnerable individuals and families; public safety; natural resources; and so many others areas. Please disconnect Oregon from the pass-through business deduction included in the new federal tax legislation.”

Oregon disconnecting from federal tax code provisions is not unusual. Since 2000 Oregon has disconnected from provisions at least six times.

Supporting LWV Positions: In evaluating specific tax preferences, the League uses the following criteria: whether the tax preference promotes equity and progressivity; and whether the revenue loss from the tax preference is justifiable. The League of Women Voters of Oregon believes any tax proposal should be evaluated with regard to its effect on the entire tax structure and the tax system should recognize responsibility for government services by providing for broad sharing of the tax burden.

For more information contact Chris Vogel, LWVOR Tax and Revenue Coordinator, at chrisvogelvolunteerlwvor@gmail.com.

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