Democrat and Republican State Lawmakers Comment on $1 Billion Plus Tax Kicker

Photo By: Tim King

(SALEM) - Courtney says unstable national, international conditions cause economic volatility in Oregon, while Ferrioli says it is important we do all we can to keep our economy growing.

Democratic Senate President Peter Courtney and Senate Republican Leader Ted Ferrioli released statements regarding the projected state personal and corporate income tax kickers Thursday.

"Powerful forces could weaken Oregon's economy," said Senate President Peter Courtney (D-Salem/Gervais/Woodburn). "These revenue forecasts are volatile. I hope everyone will beware of spending money that doesn't exist yet."

In its quarterly state Economic and Revenue Forecast released Thursday, the Office of Economic Analysis predicted continued economic growth, resulting in a projected corporate and personal income tax kicker of more than $1 billion.

Senate Leader Ted Ferrioli (R-John Day) made the following comments about the revenue forecast released, `Our economic engine is running and Oregonians have money in their wallets again. It is important we do all we can to keep our economy growing, adding more jobs, and ensuring Oregonians can provide for their basic needs."

The report released Thursday also cited numerous factors that could slow Oregon's economy, including a possible housing market collapse, rising oil prices, the falling U.S. dollar, a sharp stock market decline and the war in Iraq.

"These risks are real. The economy is volatile," said Courtney. "The corporate kicker already has declined from $205.4 million in the last quarterly forecast to $198.5 million in this forecast. The legislature won't know for sure until August 2007 whether there really is kicker money and, if so, how much. The only thing we have right now is a projection. Show me the money. We don't have any money yet."

Ferrioli added, `This is an opportunity for optimism about our future---not to pick taxpayer's pockets and cut short our economic growth."

State economists will release future quarterly forecasts in August, November, March and May.