» Local reaction mixed on tax increases

When voters passed Measures 66 and 67 last week, some Reedsport residents said they were relieved. Others were furious.

The former say funding for schools, law enforcement and social services has been saved, while the latter are sure higher taxes will lead to an increase in unemployment as small companies go out of business.

Measure 66 raises income taxes on the approximately 3 percent of Oregonians who earn more than $125,000 a year, or couples who make at least $250,000. In Douglas County, only about 1.1 percent of tax filers claim that level of income.

Measure 67 increases the minimum tax paid by corporations from $10 to $150 — retroactive for 2009 — and increases taxes on the profits of some specific types of corporations, as well.

In a press release the day after the special election was held, Gov. Ted Kulongoski said he was grateful for voters’ support, and noted the measures will provide state legislators approximately $727 million to work while crafting a budget for 2009-11.

Positive reaction

Kathi Wall-Meyer, owner of Kathi’s Vintage Antiques & Collectibles, is glad the tax measures passed, but said she can see both sides of the arguments that were so heavily advertised in the weeks leading up to election day.

“I think it’s probably the best option for us right now,” she said. “Based on what I read and heard, it’s not going to affect small, sole proprietors at all. But the biggest reason I voted for (Measures 66 and 67) is that we owe our children at least as good an education as we got — for at least those first 12 years.”

Reedsport City Manager Scott Somers, who has lived in Oregon just over one year, said, “It’s a good thing for our schools. Overall, I think it’s a good think for our community.”

He said he thought local government “didn’t really stand to lose either way, in terms of real funding.”

Indirectly, however, the city might have felt the strain at some time in the future if the measures had failed.

 “A lot of social services are funded through the state,” Somers said. “Had it not passed, I think a lot of people who are living on the edge would have lost some of their safety net. There are a lot of people living under the poverty line in our community ... so in the end, it was very beneficial for those people that these measures passed.”

While there are no “hard numbers” available on the potential impact to schools if the measures had failed, Somers said, he is glad no one has to find out.

“In terms of job creation, how are we going to create jobs, and keep our jobs in the United States if we don’t educate our citizens?” he said. “We need to maintain a standard of education in this country in order to keep jobs here. ... So that’s a good reason to pay taxes.”

Reedsport’s Superintendent of Schools Ike Launstein said he was “extremely pleased” the measures passed, because school districts may have been negatively impacted eventually if the Legislature had to deal with an even smaller budget than it is facing as it begins its 2010 session this week.

However, Launstein stressed, “We do not see it as additional money. It was already in the budget for this year, so it allows us to operate the way we have been.”

Negative reaction

Monty Stewart, a retired machine tool dealer who has lived in Reedsport for nearly five years, said he believes “it is really, really a bad idea that it passed. Tax revenues never meet with their expectations.

“I’ve seen this before, in Michigan and Califiornia, where people think that you can raise taxes and then cut them back later. Both of these states are terminally broke.”

Stewart added that tax increases “never, ever work. You cannot tax yourself into prosperity. ... I’m about community, and I don’t want to see our community get hurt.”

Jack Watson, another Reedsport retiree, said he believes the passage of Measures 66 and 67 will lead to more closed businesses.

“It stinks to high heaven,” he said. “If you want to drive small businesses out of business, that was the perfect way to do it.”

Edith Aanerud agrees 100 percent. She has lived in Reedsport for 22 years, ever since her husband retired in San Diego, Calif., and said she believes the measures will provide “next to nothing” for schools, and will lead to the loss of many local jobs.

“I'm very upset to think that these small businesses here are going to be in such trouble,” she said. “The taxes are going to be appalling. ... I think people's thinking is a little mixed up. I don't understand how a small business is going to survive here.  ... they're going to have to let employees go, and that's going to be hard on everyone. I hope something can be done to wake people up.”