March 2, 2017
March 2, 2017
Two important business tax bills up today in a House hearing.
House Bill 2831 increases to $1,000 the minimum tax paid by S corporations with more than $25 million in Oregon sales. The tax increase would affect less than one-half of one percent of Oregon S corporations and would raise less than $500,000 a year in new revenue.
HB 2831 is likely a Trojan horse for a future hike on most—or all—Oregon S corporations.
Any tax increase requires a three-fifths majority in both houses of the legislature, but a change in the revenue threshold would require only a simple majority in both houses. HB 2831 is designed to appear relatively harmless in hopes of attracting Republican votes in this session. In future legislative sessions, the $25 million cutoff could be reduced or eliminated by a simple majority vote, thereby hitting most or all Oregon S corporations with a steep increase.
House Bill 2830 increases the taxes paid by C corporations. Under HB 2830, companies would face a 7 percent tax on the first $1 million of taxable income and 8 percent on taxable income over $1 million. Depending on a company’s taxable income, HB 2830 would increase corporate income taxes by as much as 6.1 percent.
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