Home Opinion Editorials Keeping the kicker
Keeping the kicker
This isn’t the year for the Oregon Legislature to ask voters to change the unique income tax “kicker” clause in the state Constitution.
The kicker, passed by the Legislature in 1979, requires the state, when state income tax revenues exceed state projections by more than 2 percent, to refund the excess to people and to corporations.
Currently, lawmakers are considering a bill that would ask voters to eliminate the corporate kicker (the refunds would go to the university system instead) and cut in half the refunds taxpayers would receive. The other half would be diverted to a rainy day fund.
The Legislature should focus on balancing the state’s budget, not trying to extract more money from taxpayers during some blissful economic future.
We’ve already tried the rainy day route with kicker money — in 2007 the Legislature suspended the corporate kicker and kept the $344 million.
Yet the state is still $3.5 billion short.
The key point is that the Legislature can keep the kicker now — canceling refunds requires a two-thirds vote.
Lawmakers should have to justify such a decision to their constituents.
Asking voters to amend the Constitution and create a sort of rescue savings account, by contrast, excuses the Legislature, in part, from the tough work of running this state in a fiscally responsible manner.