January 15, 2018 4:40 a.m.
Congressmen Peter DeFazio is urging Oregon lawmakers to consider a proposal to redefine state and local taxes as charitable contributions in response to the recent tax overhaul legislation.
On Friday, the 4th District Congressman sent a letter to Governor Kate Brown, State Treasurer Tobias Read and every member of the Oregon State Legislature.
A release from DeFazio says the recently passed House Resolution 1, includes a provision capping state and local tax deductibility. He says without that deduction, starting this year many Oregonians will be charged twice on their income, transferring an estimated $3 billion a year from Oregonians to the federal government to help pay for reductions in corporate taxes and a rate cut for the very wealthiest Oregonians.
DeFazio claims these changes will disproportionately affect states with higher state and local taxes.
In the letter, 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 then receiving a credit for their gift in return.