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Sisters, Oregon
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The contents of the on-line edition of The Nugget represent a selection among the stories that appear in the weekly print edition.

Westlund calls for major tax reform
By Jim Cornelius

Representative Ben Westlund is calling for a complete overhaul of Oregon's tax system -- and predicting dire consequences if it doesn't happen.

"We must fundamentally reform Oregon's tax system or we will continue to slide into mediocrity and worse," Westlund said on Sunday, November 10. "If we don't do that, we will become the Appalachia of the north."

Local voters returned Westlund to the state legislature by a wide margin November 5. He returns to face a $1 billion or greater budget shortfall, a sluggish economy and a legislature divided on how to respond.

Westlund has offered a plan: Create a 3 percent retail services tax; slash individual income taxes and eliminate the capital gains tax. That, he believes, will bring in $250 million in immediate extra revenue.

More importantly, Westlund argues, it will stimulate the Oregon economy, creating more tax revenues and stabilizing the system.

Westlund is quick to acknowledge that his plan is a proposal wide open for refinement and modification. But he is adamant that radical changes are needed.

He is also adamant that the legislature must act immediately to restore the faith of the taxpayers that their tax dollars are being well spent.

That means -- among other reforms -- fixing the Public Employees Retirement System (PERS), which is hemorrhaging money; and tightening enforcement of Oregon Health Plan qualifications to stop ineligible people from receiving services.

Westlund acknowledges that making fundamental changes will be difficult, especially when pressure comes down on legislators to save programs threatened by the looming budget ax.

"Nothing in the legislature is easy," he said. "What I'm most worried about is that we get into some short-term, myopic fix."

For that reason, Westlund opposes a January 28 ballot measure calling for a temporary income tax increase to shore up the state budget.

Westlund fears that a temporary infusion of cash -- $313 million for the current budget and another $412 million in the next budget period -- will relieve pressure to make fundamental changes.

Schools are particularly anxious about that measure, fearing further cuts to staff or school days if it fails. In Sisters, failure of the tax measure would mean another approximately $150,000 in cuts.

Failure is likely, given voters' rejection of numerous tax measures in November.

Westlund hopes legislators can resist the pressure for quick fixes and focus on the long-term.

"We are going to have to experience this short-term pain for long-term gain," he said. "There are some very difficult times ahead in the next seven months in Oregon."

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