The Consequences of Increasing Oregon’s Income Tax Deduction for Federal Income Taxes Paid

May 20, 1999 Download PDF

Oregonians will soon be considering whether to allow taxpayers to deduct more of their federal income taxes from the personal income tax. Under current law, Oregon taxpayers can deduct up to $3,000 of federal personal income tax on their Oregon tax returns. One proposed change pending before the 1999 Legislative Assembly would increase this limit from $3,000 to $10,000. A second proposal, currently circulating as an initiative for the November 2000, ballot, would eliminate the cap altogether, allowing Oregon taxpayers to deduct all of their federal personal income tax.

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