Oregon's House will vote on plan to increase taxes

THE ASSOCIATED PRESS

SALEM, Ore. -- House Republicans agreed Wednesday to bring Gov. John Kitzhaber's tax increase package to a vote to settle whether lawmakers will agree with higher taxes to help resolve an $846 million budget shortfall.

Kitzhaber has insisted that legislators consider raising cigarette, beer and wine taxes and delaying a voter-approved income tax cut. House Speaker Mark Simmons said he doubts if the tax boosts will pass but that the Legislature apparently is stuck over the issue.

"We seem to be at a point that we can't move ahead until we answer that publicly," said the Elgin Republican.

He said the votes likely would be scheduled for today, the fourth day of the Legislature's second budget-balancing special session.

Tax increase bills by law have to begin in the House, and approving them requires three-fifths approval, or 36 votes. That means every Democrat and at least eight Republicans would have to support the measures for them to pass.

Democrats were skeptical of the GOP move, saying action on tax measures should be taken only after a total budget package is drafted. The Senate hasn't yet voted on a spending cut measure.

"It appears to be shenanigans," said House Minority Leader Deborah Kafoury, D-Portland.

"This is nothing but an attempt by the House speaker to prove that there aren't votes for tax increases and to get Democrats on record voting for tax increases."

"What's the point of voting on a tax just to vote on a tax" if there's no overall budget deal, she said.

The governor wants to raise the cigarette tax by 50 cents a pack, increase beer and wine taxes by about nickel a drink and postpone an increase in the federal income tax deduction that voters passed in 2000.

Republicans on Tuesday backed off from their resistance to tax measures because the Senate apparently lacks the votes to pass a $420 million spending cut package because at least two GOP senators oppose the plan.

Republicans have a 16-14 advantage in the Senate.

Sens. Verne Duncan of Milwaukie and Tom Hartung of Beaverton say lawmakers need to consider the cigarette tax increase.

The Democratic governor argues that the Republican-backed budget plan dips into too many reserves. He says a permanent revenue boost is needed because the 2003 Legislature also is expected to be short of money to meet expenses.

The Olympian Copyright 2002

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