SALEM, Ore. (AP) — The top legislator in Oregon’s state Senate said he supports a stripped-down proposal to partially disconnect the state’s tax law from last year’s federal tax overhaul after legislators increased the amount of money the proposal would raise by removing breaks for individuals and businesses.
Senate President Peter Courtney confirmed his support Wednesday. The proposal would stop a federal deduction on certain types of income from also being automatically deducted from Oregon taxes. Altogether, changes in the federal overhaul law were forecast to cost the state up to $217 million over the next two years, according to a report released by the state economist last week. The bill would reverse that impact, and collect $27.4 million extra in taxes, or about $244.4 million altogether.
The measure’s future had been in question after Senate leaders sent the bill back to committee. Concerns had earlier been raised that the bill didn’t completely fill the funding hole created by the Tax Cuts and Jobs Act, a recent overhaul of federal taxes championed by President Donald Trump.