OREGON HOUSE REPUBLICANS
FOR IMMEDIATE RELEASE
CONTACT: Nick Smith
March 10, 2011
HOUSE REPUBLICANS OFFER CAPITAL GAINS TAX REFORMS TO CREATE JOBS
Relief from High Capital Gains Taxes Will Boost Investment, Hiring
SALEM—House Republicans today presented three bills to the House Revenue Committee that would provide relief from the state’s high capital gains tax rates. Republicans say reforming Oregon’s capital gains taxes, among the highest in the nation, will encourage new investment and job growth.
House Republican Leader Kevin Cameron (R-Salem) testified in support of HB 3050 to reduce Oregon’s capital gains tax rate in half.
“The current rate serves as a barrier to economic development, and potentially drives companies and investors to other states where capital gains tax rates are lower or even zero,” Rep. Cameron said. “A high capital gains tax rate- as we have in Oregon- discourages people from investing and encourages current investors to hold onto their assets. Reducing the rate will encourage investors to realize their gains, reinvest, and create jobs in Oregon.”
Rep. Gene Whisnant (R-Sunriver) testified in support of HB 3157 to create a subtraction in net capital gains in income and corporate taxes. The subtraction would be available for the 2012 through 2016 tax years.
“State economists have told us it could take as many as four years for Oregon to reach its pre-recession employment levels,” Rep. Whisnant said. “HB 3187 creates a four-year window to promote economic activity and increased investment in our state. The National Bureau of Economic Research found that 50 percent of a cut in capital gains is recovered by higher economic growth. Compared to so-called government stimulus, it is a small price for government to pay for more jobs for its citizens.”
Rep. Julie Parrish (R-West Linn/Tualatin) testified in support of HB 3221 to allow the deferment of long-term capital gains taxes if investments are made in Oregon during the tax year. The bill, which has attracted bipartisan support, provides a mechanism for capital to be reinvested in hiring, operations and infrastructure.
“Oregon businesses need access to capital, not just for big purchases, but to manage their day to day cash flow,” Rep. Parrish said. “They also need to know that if they sell their business, they can defer that capital gain into their next business, and avoid ever having to bootstrap a company from scratch ever again!”
Rep. Cameron said House Republicans are supportive of any idea- whether Democrat or Republican- to provide relief from Oregon’s high capital gains taxes.
“Even the Governor recognizes that reducing capital gains promotes investment and economic development, and has offered a proposal as part of his budget,” Rep. Cameron. “We hope to pass a measure this session to reform our capital gains tax rate and create jobs in Oregon.”
Reducing Oregon’s high capital gains tax rates to create jobs is part of the House Republicans’ 2011 Jobs and Reform Agenda.