With contributions from the housing market, Oregon's economy has continued to grow in the last quarter, which state economists said tax revenues are coming in at $1.28 billion above projections and thus will offer of the largest personal "kicker" in the state's history.
However, they are warned that a correction could result from a cooling in the housing market, and signs that job growth is starting to level off.
"Economists are projecting that the state will have almost $13.8 billion in general fund dollars to spend in the 2007-2009 biennium, up from the $12.4 billion spent in the current two-year budget cycle on state obligations, including schools, social services and public safety.
The new quarterly forecast calls for a personal income tax "kicker" rebate of $1.043 billion to return to the state's taxpayers -- an average of $567 for a household making between $40,000 and $70,000 per year.
Put another way, for every $1,000 households pay in taxes, they could get back $206, or 20.6 percent, breaking the previous record of a 16.6 percent tax rebate in 1987.
"Kicker" refunds are sent to Oregon taxpayers whenever state tax revenues exceed official forecasts by more than 2 percent.
Corporations, too, stand to benefit from the state's continued growth, and would be entitled to a 61.3 percent reduction in their 2007 tax bills -- or $238 million that the state would never collect. The "
Earlier this summer, Governor Ted Kulongoski introduced the idea of suspending the personal income tax kicker, allowing the state to keep the money and invest in areas that were cut back during the 2001-2003 recession, when Oregon had the highest unemployment rate in the country and tax collections plummeted.
and for those who don't remember... we were #2 in the nation for unemployment. Salem offered to help by suggesting that they raise taxes to compensate for the lower income tax revenues. This coincided with the February 14, 2004 cut off date when Congress eliminated the extensions on unemployment because of the war.
In a speech on Thursday, Kulongoski made no mention of the personal kicker, instead, he repeated his call for an end to the corporate kicker, stating that the money would be better used in a rainy day fund.
In related news... the Kulongoski campaign is prepared to take its message to the voters that Governor Kulongoski has helped put Oregon's economy back on track and balance the state budget despite a $3 billion deficit brought on by the recession, explains Jim Ross, Kulongoski's campaign manager.Registerguard August 25, 2006
I'm glad somebody somewhere is seeing an improvement in the economy... all that I see, is 3+ dollars a gallon for gas and taxes going up. In fact, I realize the other day that nobody waters their lawn anymore, at least in Springfield. with the fees associated with water use, it has just become too expensive.
3 comments:
where do you see taxes going up?
The Springfield school bond is revenue neutral, meaning your taxes will not increase one penny. The county income tax will fail, and Don McIntire and Russ Walker are conspiring to strangle the state.
Taxes are so freakin' low they ought to call this state Grand Cayman Island.
Can you imagine what that extra billion would do for schools, health care, higher ed, police, roads, and the like. The kicker is a ridiculous idea. After years of cuts we could actually reverse some of the damage, but no.....you want your $206 (which you already paid)
The idea that the economy is getting better comes from, you guessed it, statistics. We all know that stats do not give a true picture, kind of like our politicians, which is why they rely on them so heavily. I long for that loud pop a head makes once it is removed from its hole. (hint to the powers that be)
Anon: The kicker is already law that must be adhered to. Teddy the K and his minions, read Obedient Syncophants, haven't really caught onto.
And, if Teddy really did get to keep the kicker money, you can bet it would not get used toward public safety, the police or fire departments, or een schools, but would rather get used in the unnecessary crap that Oregon politicians are noted for, such as the Disneyland tram, or light rail to somewhere no one wants to go, or another feel-good project that someone like Randy Leonard wants to endorse that will cost a bunch of money.
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