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SB 1527 & 1528: Eliminate special treatment for pass-through businesses

Testimony
February 6, 2018By Daniel Hauser

Chair Hass, Vice-Chair Boquist, members of the Committee:

My name is Daniel Hauser, tax policy analyst for the Oregon Center for Public Policy, and I respectfully submit this testimony on Senate Bill 1527-1, and Senate Bill 1528-3.

While there are clearly a lot of amendments bouncing around this building – I want to address a few key principles underlying these two bills and their various amendments.

Based on these core principles, I encourage this committee to:

Disconnect from the new federal pass-through tax deduction as found in IRC 199A(a).

Eliminate Oregon’s reduced tax rate for pass-through business profits.

Neither SB 1527-1 nor SB 1528-3 go far enough, but both have certain provisions that would improve Oregon’s tax system. I urge this committee to disconnect from the federal pass-through business tax deduction and eliminate Oregon’s reduced tax rate for pass-through businesses.