Small Business fear HB 3177 & billions in taxes

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osba-logoSmall Business owners are concerned over HB 3177 which could lead to a fast and furious rise in new taxes.
By Oregon Small Business Association

Oregon Small Business is concerned over HB 3177 which would reduce the threshold for State Lawmakers to raise taxes by eliminating tax cuts, deductions, credits and other tax expenditures with a simple vote majority as opposed to current law which is a 3/5th majority. There are billions of dollars of new tax increases when you consider how changes in Employer Paid Medical Benefits, Home interest deductions, Intangible Personal Property, corporate & personal income exemptions are made or outright revoked.  It is disconcerting that under this bill a multi-billion dollar tax could be passed with fewer votes than a standard tax because it was achieved by removing a tax expenditure.

Numerous harmful business taxes have been stopped over the past 15 years because of the 3/5th majority protections enacted by voters back in 1996. Removing some of these protections again puts Oregon small businesses on alert and creates a future of unpredictability and looming tax threats. Predictability is a key element when a small business owner takes a giant risk with his life’s savings and talent to create his or her own business.

While many states have been enacting tax reform to make their state more small business friendly, Oregon is making waves with high-cost tax increases with House Bill 3177.