Children First for Oregon

Oregon voters pass tax increasing measures by big margin

By Harry Esteve, The Oregonian
January 26, 2010, 10:17PM

Oregon voters bucked decades of anti-tax and anti-Salem sentiment Tuesday, raising taxes on corporations and the wealthy to prevent further erosion of public schools and other state services.

The tax measures passed easily, with late returns showing a 54 percent to 46 percent ratio. Measure 66 raises taxes on households with taxable income above $250,000, and Measure 67 sets higher minimum taxes on corporations and increases the tax rate on upper-level profits.

The results triggered waves of relief from educators and legislative leaders, who were facing an estimated $727 million shortfall in the current two-year budget if the measures failed.

“We’re absolutely ecstatic,” said Hanna Vandering, a physical education teacher from Beaverton and vice president of the statewide teachers union. “What Oregonians said today is they believe in public education and vital services.”

The double-barreled victory is the first voter-approved statewide income tax increase since the 1930s. Other states, facing similar budget woes, are watching the outcome closely because Oregon, after all, is a state that capped property taxes and locked a surplus tax rebate program into the constitution.

The last time voters approved a tax increase was 2002, when they agreed to bump up tobacco taxes to help pay for the Oregon Health Plan. Voters rejected income tax increases twice in recent years.

“You’re going to find a lot of people are going to be talking about this,” said Kevin Looper, campaign director for Vote Yes for Oregon, the main support group for the measures.

Looper was among more than 300 supporters who packed the Wonder Ballroom in Northeast Portland to watch results. Within 15 minutes of the polls closing, counties around the state released a flood of vote counts and it became clear that both measures had passed.

Multnomah County was key to the victory, with voters approving both measures by more than a 2-1 ratio. There was deep support elsewhere around the state, including Washington, Lane and Benton counties and communities on the coast. Even in more conservative areas, support was stronger than expected.