Tax Reform Proposal
Taxes should be equitable and progressive, where people who make more money pay a higher percentage.
Tax bases should be balanced.
Oregon is over reliant on property taxes.
There should be a large range of income tax brackets that account for the vast differences in income.
Tax policy should be used to lessen income inequality.
Deductions and credits are an effective tool for incentivizing individual behavior, but they must be done correctly and for the right reasons.
Tax policy should be used to make housing more affordable for low-income Oregonians.
Big businesses should pay their fair share in taxes.
Primarily taxing business profits, rather than total revenue creates a more equitable system.
Small businesses should be given tax relief and increased deductions during times of economic downturn.
Regressive taxation disproportionately impacts low income communities and communities of color.
Tangible Policy Changes
Create more income tax brackets, so someone making $8,901 and someone making $125,000 do not pay the same rate. Oregon currently has 4 income tax brackets, by comparison, California has 10.
Lower the personal income tax rate for folks who make less than $100,000 per year (Nearly 80% of Oregonians).
Lower property taxes, which will lower the price of owning an apartment complex and lower the cost of homeownership. Oregon is over reliant on property taxes, which drives up the cost of housing and creates an inequitable system.
Raise the highest personal income tax rate, above 9.9%.
Increase the homestead property tax exemption for primary residents. Oregon currently has a homestead property tax exemption of $40,000, which reduces the value of a home for an assessment of property taxes by $40,000. This is very low compared to other states, by comparison, Washington has a homestead property tax exemption of $125,000.
Increase the childcare deduction.
Limit the mortgage interest deduction to only an individual’s first home, not allowing it to be used on second, third, and fourth homes, etc. This will create a more equitable system, as folks who can afford multiple homes should not be able to use this deduction multiple times.
Increase student loan interest tax deduction from $2500 to $3000.
Eliminate the personal income tax kicker.
Temporarily increase labor deductions and lower payroll taxes for small businesses during times of economic downturn.