Oregon Approves Tax Increase on Top-Earners, Business

The State of Oregon approved a $727 million tax increase on businesses and high-earners this week, hoping to bridge some of the gap in the States budget. Well known for being a State with out a sales tax, it is not uncommon for Oregonians to approve taxes increases elsewhere. Checkout the following article on the development courtesy of Bloomberg.com.

Oregonians voted to keep taxes enacted by Democratic Governor Ted Kulongoski in July, according to a count of ballots cast by more than half of the state’s registered voters. Measure 66, which raises taxes on households earning $250,000 or more, passed by 54 percent. Measure 67, which increases corporate levies, garnered favor of 53 percent.

Legislators enacted the tax boost last year to help close a $4 billion hole that the U.S. recession opened in the state’s budget. The levies spurred a challenge from foes who gathered enough signatures to force the referendum. By targeting businesses and the wealthy, proponents parried resistance from voters who twice defeated tax increases in the wake of the 2001 recession.

“It’s a go-after-the-rich strategy,” said John Matsusaka, president of the Initiative and Referendum Institute at the University of Southern California in Los Angeles. “It shows that some voters have switched their minds and they’re more likely to go after the rich.”

The results are from an unofficial count of 1.12 million ballots released by the Secretary of State’s office by 11:15 p.m. local time yesterday. That accounts for 55 percent of the state’s registered voters, who cast ballots in a mail-in election that concluded yesterday.

Continue reading at Bloomberg.com…

Oregon Anti-Tax Leader Indicted On Tax Charges

From the Associated Press:

Bill Sizemore, Oregon's high-profile anti-tax activist and Republican candidate for governor, has been indicted on tax evasion charges that could send him to prison if convicted.

The Oregon Department of Justice said Monday that Sizemore and his wife, Cindy Sizemore, are each charged with three counts of evading Oregon personal income taxes. Each count carries a maximum punishment of five years and a $125,000 fine.

The indictment alleges the couple failed to file returns for the tax years 2006, 2007 and 2008.

Bill Sizemore called the charges a "political attack" by public employee unions and state Attorney General John Kroger, a Democrat who had union support.

Those unions and Sizemore have been in a long-running legal battle. On Monday, the Oregon Education Association — the state's largest teachers union — said Sizemore "continues to act as though he is above the law.

"It's not that he's being politically targeted; he keeps breaking the law," said OEA spokeswoman Becca Uherbelau.

In 2002, a Multnomah County jury found that Sizemore's former political action committee had engaged in a "pattern of racketeering" by filing false financial reports and using forged signatures to qualify anti-union and anti-tax measures for the ballot.

Paying Taxes May Make People Happy

As odd as it may seem, that is the conclusion being drawn from a new study from University of Oregon. "Paying taxes can make citizens happy," claimed Ulrich Mayr, a professor of psychology. The study found that two reward-related areas of the brain lit up during a taxation test. These areas typically are activated when some one experiences feelings of satisfaction, such as after having eaten a meal. "The fact that mandatory transfers to a charity elicit activity in reward-related areas suggests that even mandatory taxation can produce satisfaction for taxpayers," the study said. For more information on the study check out CBC News.