March 17, 2021 4:10 a.m.

House Republicans have introduced legislation they claim would combat a new proposal from Democrats that would tax Oregon businesses for paycheck protection program loans they received to keep people employed during the pandemic last year.

A release from the Oregon House Republican Caucus said HB 2457-1 would disregard a commitment made by members of Congress, by taxing PPP loans that Oregon businesses received in 2020.

State Representative E. Werner Reschke of Klamath Falls said, “This new proposal would completely undo the intention of the paycheck protection program”. Reschke said the state of Oregon already received a two-fold benefit from PPP: the state receives more income taxes because people remained employed and fewer Oregonians needed to utilize unemployment benefits. He said that “Surprising businesses with this retroactive tax is completely contrary to what Democrats and Republicans in Congress intended when they passed the CARES Act”.

Representative Reschke’s amendment would prevent PPP loans from being treated as taxable income.

Oregon House Republicans also announced a proposal to help Oregonians who may have their taxes negatively affected by stimulus checks. House Republican Leader Christine Drazan said that no one should be paying higher taxes “…just because they received this financial help”. HB 3383 will soon be read on the floor and would undo the impact that stimulus checks can have on tax liabilities, according to the House Republican release.