Northwest Observer

DeFazio Supports Anderson’s Stimulus Check Protection Act

Tax season is quickly approaching

As state Democrats look for ways to prop up government growth during the government imposed COVID recession, Congressman Peter DeFazio (D-OR 4) has stepped up to support State Senator Dick Anderson (R-Lincoln City) in his quest to keep relief money from being taxed.

DeFazio is urging that Governor Kate Brown, Oregon State Senate President Peter Courtney, and Oregon House of Representatives Speaker Tina Kotek to ensure that COVID-19 Economic Impact Payments do not contribute to working-class Oregonians’ tax liabilities for 2020.

“It is unconscionable to ask the very families who have struggled the most during the COVID-19 crisis to include these payments in their tax liability,” said Rep. DeFazio. “These payments are a lifeline for Oregon’s working families, and while the ongoing pandemic has caused a budget shortfall for the state, the state should not ask these Oregonians to bear the brunt of that shortfall on their backs.”

Although Congress intended for EIPs to be tax-free, current Oregon state statute will result in hundreds of thousands of Oregonians being indirectly taxed at the state level. Data from the Oregon Legislative Revenue Office shows that EIPs included in the CARES Act that passed in March of 2020 will result in approximately 870,000 Oregonians seeing an increase in their state tax liability to the tune of more than $100 million.

Senator Anderson sent the following letter to Congressman DeFazio: Congressman DeFazio,

Thank you for your recent support of my efforts to ensure federal Economic Impact Payments are shielded from state taxes. I currently have legislation being drafted that would keep this relief money in the pockets of working Oregonians.

As you have identified, this is an important step to fulfilling the intent of the federal legislation that helped millions of Oregon families during the pandemic.

While our parties differ, we serve many of the same constituents. It is my hope that we can work together to get this legislation passed this session for the good of our constituents, and Oregonians more broadly. For a family of four, $300 can make a big difference for working families who are struggling to make ends meet. Yet under the current law, these families will be sending that much of their stimulus check to the state government.

A D V E R T I S E M E N T

Tax season is quickly approaching and given procedural roadblocks that will keep this legislation from going to effect before taxpayers must pay last year's taxes, I am including provisions in the law that would allow affected Oregonians to either amend this year's taxes or file for a credit next year. Of course, any future payments should also be exempt.

To that end, I would respectfully request that once the bill is assigned to a committee, that you would testify in support of its passage. You were involved in the bipartisan crafting of the federal legislation that sent the much needed relief to Oregon families, and I believe your insights and support would be important to this effort. Again, thank you for your support on this issue and for your service to our state.

I look forward to working together in bi-partisan ways to help Oregonians begin their long road to recovery from this pandemic.
The bi-partisan agreement on this indicates the value of this proposal. It remains to be seen if Oregon's legislative leaders will share this view.

--Staff Reports

Post Date: 2021-02-19 18:20:50

Last Update: 2021-02-19 18:46:06

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