HB 2457 is scheduled for a work session on May 10 in the House Committee on Revenue. This bill is generally a housekeeping bill to update connection date to the federal Internal Revenue Code and other provisions of federal tax law. However, Representative Pham is trying to pull a fast on in the -1 amendment. This amendment requires addition to federal taxable income an amount equal to any Paycheck Protection Program loan amount received by the taxpayer that is forgiven. Applies to personal and corporate income taxpayers for tax years beginning on or after January 1, 2020 and before January 1, 2026.
Representative Pham does like seeing you helped through this emergency without the state receiving a share. Taxation in arrears is unconstitutional, Article I, Section 32 “No tax or duty shall be imposed …” implying foreknowledge.
The -1 Amendment eliminates three different business tax relief portions of the 2020 bipartisan congressional CARES Act aimed to aid businesses affected by the government shutdown. It would completely undo the intention of the paycheck protection program. Oregon already received a two-fold benefit from PPP: the state receives more income taxes because people remained employed, and fewer Oregonians needed to utilize unemployment benefits. Surprising businesses with this retroactive tax is completely contrary to what Congress intended when they passed the CARES Act.
Tell the committee what you think of the -1 Amendment:
|Representative Nancy Nathanson
|Representative Khanh Pham
|Representative E. Werner Reschke
|Representative Bobby Levy
|Representative Pam Marsh
|Representative Greg Smith
|Representative Andrea Valderrama
Date: 2021-05-07 05:08No tags for this post.