Brown: Tax package failure could pave way for transportation bill

Published 3:49 pm Thursday, June 22, 2017

SALEM — The failure of a state revenue-raising package this legislative session could “clear a path forward” for passing a long-awaited transportation funding bill, Gov. Kate Brown said Thursday.

“When you’re tackling multiple very difficult issues and revenue reform, that’s something that legislators and governors have spent decades trying to address,” Brown said. “When … move it off to the side, it certainly clears a path forward for transportation.”

Brown said passing the transportation package is now her administration’s focus for the less-than three weeks remaining in the session.

“We are working very closely with the legislative work group, and folks have rolled up their sleeves and are working hard as well. Everyone is moving in the right direction.”

Brown made the comments shortly before holding a nearly four-hour meeting with leaders on the legislative work group that authored the package of road congestion and maintenance projects and increases in taxes and fees.

The tax increase means the Legislature’s Democratic majority will need Republican votes to obtain the constitutionally required three-fifths majority vote to raise revenue for the transportation projects.

Republicans and Democrat leaders continue to negotiate specifics of the plan. But Republicans have stopped short of promising their votes.

There is no guarantee of GOP votes, said Jonathan Lockwood, a spokesman for Senate Republicans.

Republicans are decrying a bill headed to the House floor Friday that would slash a tax break for “pass through businesses — generally small businesses whose profits are taxed as their owners’ personal income.

The proposal would bring in nearly $200 million in additional money to help offset the state’s $1.4 billion revenue shortfall.

Democrats say the tax exemption, a bargain with Republicans in 2013, has failed to stimulate job growth and benefits wealthy professionals such as hedge fund managers, lawyers and doctors.

Republicans also have been seeking changes to multi-billion-dollar transportation package, including rollbacks to the state’s carbon emissions standards and a smaller gas tax increase. However, both parties have invested considerable effort in crafting the plan to maintain roads and bridges, ease congestion and increase the accessibility of transit.

“Getting to a transportation package would be something people would be really happy to see come together this session,” Lockwood said.

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