Friday, April 8, 2011

End of the Kicker in sight?

Oregon's Kicker Law, which forces the government to refund money to taxpayers if the state meets its revenue goals, is under attack by Ted Wheeler and Kitzhaber.  The last time the kicker was actually utilized was in 2007 for the 2006 tax year.  Even then, it was roundly criticized.  This is because part of the reason Oregon went so broke so quickly during the recession is because the kicker prevents the state from having a rainy day fund.  Additionally, it is only marginally beneficially to the people who it supposedly benefits, because a) the top 1% of income earners get one quarter of the total refund, and b) to the extent that it benefits actual middle class tax payers the benefit they receive is greatly diminished by an increase in federal tax liability the year after the kicker is given out, because most middle class Oregonians take a federal deduction for 100% of the state income they pay.

But, the kicker is part of the Oregon constitution and getting rid of it will require a majority vote by all Oregonians, and Oregonians will vote for a tax increase when hell freezes over.

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