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Rep. Peter DeFazio Urges Governor Kate Brown, State Treasurer Tobias Read, OR Legislature to Protect Oregonians from Damaging Provisions in GOP Tax Bill

Jan 12, 2018
Press Release

Rep. Peter DeFazio today sent a letter to Governor Kate Brown, State Treasurer Tobias Read, and every member of the Oregon State Legislature urging the lawmakers to consider a proposal to redefine state and local taxes as charitable contributions in response to the recent tax overhaul legislation.

The recently-passed tax bill, H.R. 1, includes a provision capping state and local tax deductibility (also known as the SALT deduction). Without the SALT deduction, starting in 2018 many Oregonians will be charged twice on their income, transferring an estimated $3 billion a year from Oregonians to the federal government in order to help pay for massive reductions in corporate taxes and a rate cut for the very wealthiest Americans.

These changes will disproportionately affect states with higher state and local taxes—which are also traditionally states that voted against President Donald Trump in the 2016 presidential election.

In the letter, Rep. DeFazio urges the lawmakers to consider creating a new state fund to which Oregon taxpayers could donate the no-longer deductible portion of their owed income. Taxpayers could then write off that donation as a charitable deduction, encouraging Oregonians to donate to the state government and receiving a credit for their gift in return.

Rep. DeFazio writes,

“I am appalled that Republican leadership would push such an irresponsible and partisan piece of legislation, continuing to focus on winning cheap political points and keeping their wealthy political donors happy at the expense of the middle class. It’s time to push back against this outrageous excuse for tax reform and explore strategies to protect Oregon.”

To see a PDF version of the letter, click here