It’s official: The collective “kicker” tax rebate Oregonians will likely receive when they file in 2020 is going to be $108 million smaller, thanks to a bill Gov. Kate Brown signed into law on Wednesday.
At the last forecast in February, state economists predicted Oregon’s one-of-a-kind personal income tax rebate could reach $748.5 million. At that time, economists estimated that individuals earning the median adjusted gross income of $35,000 to $36,000 would receive kickers of roughly $180.
Oregon politicians passed HB 2975 which steals $108 million out of people’s Kicker Income Tax Refund by using a budget gimmick. It is liek pick-pocketing taxpayers and hoping they do not notice. The politicians would take more but the Kicker law is in the Constitution. HB 2975 now heads to the Governor.
The Kicker is kicking because tax revenue (Income tax, business taxes, lottery) has been booming beyond forecast. This excess over-collected revenue should 100% be returned to taxpayers by law. Instead the politicians are taking this one-time cash grab and spending it on permanent budget expenses, which means taxes will be raised in the following budget year in order to maintain the spending levels they just inflated.
What is a 'kicker' and how will it affect you?
SALEM — Oregon’s projected “kicker” tax rebate will decrease by $108 million under a bill passed by Democrats in the state Senate on Monday.
For individual taxpayers, that would translate to a 14.5 percent reduction to their kicker rebate when they file their taxes in 2020, if state economists’ most recent revenue forecast holds.
Oregon taxpayers may have heard they would be getting a big, fat kicker check on their 2019 taxes. The tax credit would be worth about $180 for people making between $35,000 and $36,000 and more for people making more.
But what happens when Oregon lawmakers face the prospect of returning money to taxpayers? The Legislature’s unofficial maxim — thou shalt not give taxpayers their money back — blazes brightly enough to make the Capitol dome glow.
There’s a proposal this session to essentially do away with the kicker. And there’s a proposal to shrink the 2019 kicker check. Both should be rejected.
Political shell game will short Oregon taxpayers
All House Republicans today voted against HB 2975’s so-called budget program rebalancing bill. HB 2975, which passed over bipartisan opposition, is a direct attack on the constitutionally protected kicker, returning dollars to Oregon taxpayers.
BEND, Ore. – State Rep. Cheri Helt, R-Bend, said Saturday that lawmakers should move quickly to combat the economic hardships facing Oregon families and businesses due to the COVID-19 coronavirus, by refunding excess state revenue in immediate "kicker" checks, rather than a tax credit.
Helt said the Legislature should meet in special session right away to convert roughly $1.6 billion in "kicker" tax credits, due to taxpayers later this year, into tax refund checks sent directly to Oregonians by Memorial Day.