Economic Stimulus Package Leaves Oregon Exposed

Oregon could lose about $90 million in revenue if bonus depreciation is in the stimulus package.

(SILVERTON, Ore.) - While the tentative deal reached yesterday between the White House and House leaders on an economic stimulus package contains laudable elements, Oregonians should worry because it fails to provide for direct federal aid to states and threatens to reduce Oregon's revenue stream, according to the Oregon Center for Public Policy.

"Oregon would be in a much stronger position to weather a recession if the economic stimulus package shored up key state services," said OCPP policy analyst Janet Bauer. "It would keep state money flowing through the economy, providing a stimulus, and help keep the most vulnerable Oregonians on their feet."

The centerpiece of the tentative $150 billion deal is stipends of at least $300 for all workers who earned at least $3,000 last year, including those who did not earn enough to pay taxes. Workers who paid income taxes could receive more. Reports of the deal say that the payments will exclude individuals earning above $75,000 and couples earning above $150,000.

"The good news is that the agreement provides more benefits to low- and moderate-income workers than the Administration's initial proposal," said Bauer. "Low- and moderate-income Oregonians will spend the greatest share of their payments, making them the most likely group to deliver a boost to the economy."

The bad news, she added, is that the deal fails to extend unemployment benefits or increase food stamps. The non-partisan Congressional Budget Office recently called these two measures the most effective stimulus options because they put money into the hands of people most likely to spend it quickly.

The deal is also silent on direct assistance to states. Bauer argued that Oregon would almost certainly need federal aid in case of a significant downturn in order to avert budget cuts or tax increases.

Oregon would benefit from general federal aid and a temporary increase in the federal share of Medicaid spending to help minimize cuts to health coverage, according to the OCPP analyst. "When a recession hits," said Bauer, "more Oregonians will be looking to the state for health coverage. Increased federal help with Medicaid can offset declining state revenues."

The stimulus package would also be stronger if the Senate removes business tax cuts, including the bonus depreciation provision contained in today's deal, said Bauer. She argued that such business tax breaks are a particularly weak stimulus and put state revenue in jeopardy.

The Washington, D.C.-based Center on Budget and Policy Priorities recently calculated that Oregon would lose about $90 million in revenue if bonus depreciation is in the stimulus package.

Oregon would lose revenue because state law automatically recognizes such a change in federal tax law, Bauer explained. She added that the state can "decouple" from the provision.

"Unless the legislature decouples Oregon from the provision, the federal bonus depreciation business tax break would reduce state revenue at a time when the economy would desperately need a spending infusion," Bauer noted. "Our legislature wasn't able to muster the votes to decouple during the last recession, when Congress enacted a similarly inefficient business tax loophole. It cost us dearly, as tax revenues plummeted."

"We'll be looking to Senators Wyden and Smith to strike the costly and ineffective bonus depreciation provision from the stimulus package," she added. "If the measure makes it into the final package, we'll be looking to the Oregon Legislative Assembly in the February special supplemental session to protect the state's coffers by disconnecting from the bonus depreciation tax loophole."

This news release is from the Oregon Center for Public Policy, a non-partisan research institute that does in-depth research and analysis on budget, tax, and economic issues. The Center's goal is to improve decision making and generate more opportunities for all Oregonians.

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Jefferson January 29, 2008 8:19 am (Pacific time)

The pathological: People when you observe those who consistently ridicule others (generally triggered by the ridiculer's need to overcome some personal inadequacy-see below) and you see statements from those doing a ridicule [tactic] who use phrases such as "weasel-worded statements" (or something else, e.g. , the individual doing the ridiculing will also impart how intelligent they are and how moronic everyone else is, a very common trait, very common), but it will "always be demeaning", then that is what far left agitator's like Saul Alinsky (a genetic reference to type) tell these liberal fascists to do (though many of my associates are confident that there are many other factors and possibly some overt disability(s) that causes (sometimes) extreme unhappiness in these types of "subjects", which may in fact be the primary antecedent (other than genetics) of their pathology. Ridicule, agitate, demean, use bait and switch tactics, and most importantly do not debate when facts are being used in that debate (change and distort topics!). These types of people hate facts, they just hate them, as they do themselves! The bait and switch tactic is very common, and often used by those who have very limited intellectual capabilities, though ironically, they think they are peerless when debating (and will frequently tell you so! LOL), and generally do not recognize their overt limitations. Some professionals refer this behavior as a symptom of narcissism. I agree. Suffice, debating with these people should be looked upon as a chance to educate others...the three digit IQ people, or, e.g. , those who are doing a research paper for the Journal of Abnormal Psychology in conjunction with some of their grad students. Of course the entertainment value is also priceless...

Neal Feldman January 27, 2008 8:09 pm (Pacific time)

Jefferson - ah yes, still projecting I see. You try and ridicule (when you are clearly ill-equipped and the facts clearly do not support you) and you get enraged when your intellectual betters continuously show your flawed and fallacious attempts at critical thinking for what they are. All this talk from you about 3 digit IQ... are you still envious? Apparently so. Since mine, tested out in my early college days, is likely at least double yours I find your whining about it quite pathetic and feeble. But I guess you must do with what meager resources you have, eh? It is sad, though, when time after time the facts are clearly presented to you yet you lack the basic wit to pierce your delusional veils to grok it. Nut never fear... so long as you continue your practices of delusional projection, dishonesty, hypocrisy and your laundry list of flawed and fallacious critical thinking I, or others, will be around to set the record straight. So mewl on. Ah well...

Anonymous January 27, 2008 1:42 pm (Pacific time)

Ben Franklin: "Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety." Big government with their accompanying entitlement programs are done at the expense of individual freedoms. The goals of big government soon superceedes individual goals/liberties which will breed vicious factionalism as everyone chooses up sides to influence those who have control over their lives. The type of factionalism that developed beginning in 1917 Russia eventually cost the lives of tens of millions. This part of global history was a part of our schools curriculum until around the mid-1960's (late 50's on the east coast). Any of you wonder why the violent murder of tens of millions of Russians is not being taught about? Well one theory on this matter is that there are those living in this country (around 2%) who had relatives (around 2% of Russia's population that made up over 90% of the killers) that engaged in this above referenced mass killing (the largest in world history) , and they simply don't want you to know what they are capable of...they don't like facts, they really don't!

Jefferson January 27, 2008 12:52 pm (Pacific time)

I'll bet the odds are high that clear-thinker's out there who have 3 digits in their IQ (say around one million to zip) experience no problem understanding just what "[...equitable distribution of the economy's benefits]" means, as per the OCPP (see above article for reference, and their website at ocpp@org). No problem at all! Those who have the entitlement mentality probably just don't care that there are hardworking people, many making great sacrifices, who are supporting them. The best way to help these people, i.e. , those that are "capable of working", is putting them to work and denying them benefits. As far as those that need continuing assistance because of a legitimate disability, most definitely we as a society need to provide for these people. For those of you who are interested in who provides more time and resources for the disabled, conservatives or liberals, well the conservatives do at a significant rate. The liberal fascists out there simply mislead when they can, a simple but effective strategy for those of you who have not developed a method of recognizing them. When you observe those who get ridiculed, or you see statements from those doing the ridicule tactic who use phrases such as "weasel-word statements" (or something else), but it will "always be demeaning", then that is what far left agitator's like Saul Alinsky tell these liberal fascists to do. Ridicule, agitate, demean, use bait and switch tactics, and most importantly do not debate when facts are being used in that debate. These types of people hate facts, they just hate them! The bait and switch tactic is very common, and often used by those who have very limited intellectual capabilities, though ironically, they think they are peerless when debating, and generally do not recognize their overt limitations. Some professionals refer this behavior as a symptom of narcissism. I agree. Suffice, debating with these people should be looked upon as a chance to educate others...the three digit IQ people, or, e.g. , those who are doing a research paper for the Journal of Abnormal Psychology in conjunction with some of their grad students.

Uhh Ohh January 26, 2008 7:13 pm (Pacific time)

Oregon Public Employees Retirement Fund has shrunk by nearly $6 billion since the beginning of the year. Think of it as 40 percent of Oregon's state budget for the next two years. Or a $270 million loss per day. http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1201319714297080.xmlandcoll=7

Henry Ruark January 26, 2008 1:25 pm (Pacific time)

To all: Saul Alisky is famed or notorious Communist advocate, depending on your viewpoint for meaning of adjective-chosen. Use here is smear technique wellknown to user doing it, designed to demean, downgrade, damage and otherwise defeat, if possible, any reliance any reader may have on OCPP. That usage clear signal of intentions involved in comments from this source, so reality here walls for huge BEWARE !-sign whenever you encounter one. Also strong signal of both attitude and background when encountered by anyone using such tactics today, reminiscent of '30s to 60s and significant attacks thereby on what now enshrined as stronger human rights in American usage and conscience. 'Nuff said ? IF more needed, just watch for following comments, always demanding of others but never, ever adding anything positive and, shall I say it, democratic... To equate, even so ponderously and poisonously as this, any connection of OCPP to Communist theory at any level is unconscionable, unwarranted and unacceptable in this channel.

Henry Ruark January 26, 2008 1:02 pm (Pacific time)

To all: Turns on the full meaning of equitable and surely the Revolutionary-determined, and now presupposed, power of the people over the power of corporations and the moneyed few. That's when we control our representatives, of course, now in deep doubt both in DC and Oregon as well as all other states. BUT no matter what the current status may truly be, we can still rule the roost --that is, the Legislatures at any level, with some odd birds surely perched therein now. Here's definition: adj. : implying justice dictated by reason, conscience, and a natural sense of what is fair to all; "equitable treatment of all citizens"; "an equitable distribution of gifts among the children". What's wrong with justice, reason, conscience --and fair play for all ? Founders used key-words "equal under the law", which is all anyone now asks; along with control of who now makes "the law", and names the Justices, too !! Do you believe in worker getting fair shake and living wage ? NOT "minimum" but a real LIVING wage ? If NOT living wage, how continue to work and share burden of any/all wealth creation ? Sooner or later, without LIVING wage, worker either leaves OR dies... Ben Franklin pointed out that private property was creation of society and the state, and that society and the state had full claim on it at any time for its commonweal purposes. Many among monied lose sight of that, feel it is all their right, rightly earned, when opportunities to earn-and-learn were totally made possible by state action and status-quo at every level. Do you quarrel with that ? IF so, need cite somebody other than those you named, since all have added to the understandings society now shows in what it does, while you cavil and complain and conceal and fail to consider the realities of life in the 21st Century. While you persist in remaining anonymous, whatever you may have to share from life experience means nothing without ID-information to make it meaningful by surround and situation and common sense involved in whatever it was that you really did accomplish in any way. The old pattern of Lord and Master in the Castle on the Hill, with all serfs bending to his will,(and "assuming the posture" on demand !) whatever it may be, is long gone...in case you hadn't noticed. Wit, wisdom, will of the people now governs all, as you et al will continue to discover, to your horror as well as surprise.

Neal Feldman January 26, 2008 12:46 pm (Pacific time)

Jefferson - same can be said regarding neocon attitudes too. One can always find fringe sites. So what? But your attitude forgets that it does not matter how hard you work if you disregard 99% of the populace you are still outnumbered 100 to one and most guns don't load 100 rounds. So how are you gonna come out in a revolution where you are outnumbered 100 to one, especially if they have guns too? Hmmm? Usually from a civilized standpoint (as opposed to a neocon fantasy standpoint) it is better to make sure society takes care of everyone or everyone will take care of society, one way or another. This is wisdom of history to be ignored perilously. Ah well...

Jefferson January 26, 2008 11:16 am (Pacific time)

The following is one of OCPP's core principles: "We believe in the [equitable distribution] of the economy's benefits." People does the above sound familiar to you? Read Marx, Engels, Alinsky, ad nauseum. I'm sure clear-thinking American's who work hard to pay their own way for themselves and their loved ones understand what "equitable distribution" means and those who have that entitlement mentality don't care! Go to ocpp.org to view for yourself, but remember, there always is flowery rhetoric to be found at many so-called non-partisan websites. In the case of OCPP, I simply pointed out something that you should consider when making an assessment of their positions on different matters. Hopefully no one sees a problem with pointing out this very clear publically-stated core principle of the OCPP.

MBA January 26, 2008 10:32 am (Pacific time)

Last time I checked, Oregon has the ability to tax every American living in their state. Putting this money in the hands of taxpayers ensures those that have worked hard in our society will get the rewards. We have already seen that this state has handed out driver's licenses to hundreds of thousands of illegal immigrants. Placing them at the front of the line for food stamps, jobs, unemployment, and who knows how many other benefits. Now for those who worked hard under illegal pretenses of citizenship have been taught a tough lesson. One that they won't soon forget. Many already envision mass self-deportation. This plan of putting the money into the hands of hard working Americans has already been done twice by President Bush earlier in his first term. It was very successful and it put America on a solid footing to face the aftermath of the attacks on 9/11. The President is once again on the right side of history. Tighten up your belt America. Those who have lived through or studied the great depression or recession understand what is happening. Educating Oregonians about spending this money wisely is the best thing that can happen in the coming months. Rather than bicker and banter about how right or wrong the rebate is -- let's celebrate the almighty dollar and ensure our youngest citizens understand fiscal responsibility.

Henry Ruark January 26, 2008 9:18 am (Pacific time)

To all: Simple check on computer memory for comment-contact shows at least fifteen book links sent for possible review to negative-sayer prominent here. NOT ONE has ever been confirmed as checked, much less read ! Since impossible for personal contact on every issue involved, means any "opinion" coming from internal personalized experience only. UN"informed" opinion is universally recognized as worth about as much as "belly-rub" feeling, per true statement from none other than former Gov. Sprague, also of national note as courageous, principled, ethical newspaper editor/publisher. SO let your own judgment be your guide as to value --if any-- of ANYthing from source allowing, in own words, early interest in water-boarding, and with "command-control" attitude implicit in own-words description of military service. Contrast with Eisenhower's attitude for military cabal, if any further question as to value of comments-here. Professional opinion demands close, continuing, fully concentrated attention across many issues, using many diverse sources, with both responsibility and proven accountability as driving forces due full application before any client acceptance of what may then be offered. Those neglecting that very common/sense controlling sequence, whether play-pundit or unperceptive recipient, pay for non-practical information thus shared, in many ways, for a very long time, unavoidably, and with proper consequence of being misled by feelings and fumblings rather than facts and solid findings from truly meaningful sources.

Henry Ruark January 26, 2008 7:01 am (Pacific time)

To all: "Opinion" means only so much as where it cometh from...so here is today's re the very deficient "stimulus" package now emerged as "bipartisan" effort, but devoid of the required decencies to really make it so: (From SLATE at WP website) "The Washington Post leads with, and the Los Angeles Times fronts, news that a Senate coalition will try to expand on the economic stimulus package recently agreed to in the House--defying President Bush and conceivably unraveling the current compromise. The New York Times leads with news that state and local governments are being struggling to pay for infrastructure projects as the cost of labor, materials, and fuel skyrockets."

Neal Feldman January 25, 2008 3:52 pm (Pacific time)

Nothing but bread and circuses where 99% will just end up in the pockets of the super rich. It is ShrubCut II. Retired or disabled or long term unemployed? You get nothing. The money should instead fund infrastructure repair and enhancement programs which would create good paying JOBS! THAT would stir up the economy.. not some little fob of cash that won't even make the average car payment. Ah well...

Henry Clay Ruark January 25, 2008 3:34 pm (Pacific time)

To all: Given choice, who among us is so naive and UNinformed as to choose Un-ID'd constant negative-maker vs OCPP, one of nation's top non-partisan and proven policy-study groups ? "Opinion", rightly so, rides on strength of responsibility, accountability and proven track record. Anyone want 100-to-1 on OCPP ? Given review of past punditry-Comments herein, may even make that 500-1.

Glen January 25, 2008 2:46 pm (Pacific time)

Well said, Sue. You are spot on. America needs to look beyond what's right in their face and plan for the future. Energy is a tough problem, but we're never going to solve it by pretending it's not there.

Jefferson January 25, 2008 1:57 pm (Pacific time)

The "opinions" by OCPP are just that, and nothing more, i.e. , opinions. In the fullness of time, we shall see how accurate they are. How many of you are familar with SAUL ALINSKY and his strategies? I ask this question as a non-partisan just like the OCPP asserts that they are, also non-partisan, but what is their endgame people?...uh huh!

Sue January 25, 2008 1:48 pm (Pacific time)

Our government doesn't have 150 billion. Therefore, they will borrrow it. We (taxpayers) will pay this "free" money back with interest. This plan has no real effect on the economy. If a family is ready to lose their house, will a few hundred dollars really help? They need a job that pays a living wage! I would like to see our government invest in alternative fuels. Possibly an incentive for American motor companies to go oil less, be require them to use only 100% American made products and 100% American workers. I could give this same example for many industries. This should have been done years ago. No, it would not have an immediate effect. We need long term answers, not just a band aid that won't stick.

Oregon Highways January 25, 2008 12:55 pm (Pacific time)

Mike, from Oregon writes:
Why would it be beneficial to simply 'gift' money to the taxpayers? Why not infuse money into the economy that would stimulate jobs? How about investing money in more infrastructure? This would stimulate construction, which is a key employer in our economy.
Henry M. Paulson
Hi Mike – I’ve heard that question a lot, for instance, from commuters across the nation who ask about highways and subways. On average, it takes eight years to bring a transportation project from conception to construction. Even for simple projects such as repaving, new funds would not immediately flow into the economy as they take too long to implement. We are focused on making an impact on the economy this year – and that means using policy tools that get money into our economy quickly. Cash to individuals will stimulate jobs – as individuals spend their rebates; together with the other provisions of the economic growth package, we should see over an additional half a million new jobs in our economy this year.
http://www.whitehouse.gov/ask/20080125.html

Henry Ruark January 25, 2008 12:36 pm (Pacific time)

To all: Every point in this OCPP statement is accurate and compelling, especially the impact on Oregon if enacted as proposed. (See current Op Ed for direct links to more points of view.) For ANY economic stimulus to earn that name, in these current world circumstances, demands immediate impact, not months of delay until complex rebate check amounts can be calculated and computerized. For rapid remediation, the extension of the unemployment benefits now running out for millions is demanded, and the next-essential step is simple and solid effort to get food to those threatened with fearful deficiencies. BOTH will "spend now, not pocket or pursue speculative stock-purchase", as one critic put it, surveying those to whom large portions of this program are obviously dedicated. The once-opposition party negotiated that immediate impact away, and for what ? The myth of "bi-partisan action" ??

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Economic Stimulus Package Leaves Oregon Exposed

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