MADELEINE BRAND, host:
While the president and Congress debate difficult financial questions, Oregon has taken an unusual step of its own. Yesterday, voters there approved tax increases on corporations and on the rich.
Our story comes from Chris Lehman of the Northwest News Network.
CHRIS LEHMAN: Political activist Steve Novick could hardly contain himself. As one of the most public supporters of the tax hikes, Novick rallied the crowd gathered at a Portland concert hall Tuesday night by imitating a baseball announcer calling a game-winning home run.
Mr. STEVE NOVICK (Political Activist): Oregon voters had a large rally with a left field stance, and they're going crazy.
(Soundbite of cheering)
Mr. NOVICK: They're going crazy.
(Soundbite of cheering)
LEHMAN: Oregon voters usually reject tax hikes. They voted down higher income taxes twice in the past decade alone. Theyve repeatedly shut down efforts at creating a states sales tax. But this time, supporters drove home the message that the taxes narrowly targeted corporations and the state's wealthiest - just two percent of taxpayers.
Individuals who make more than 125,000 and families who earn more than a quarter million will pay more taxes. Corporations will pay anywhere from as low as $150 to as much as $100,000 more depending on profitability. Portland software developer, David Vernier, supports the tax hikes, even though it means more money out of his pocket.
Mr. DAVID VERNIER (Software Developer): Sure, its going to cost us some taxes, but I need to have that highway patrolman on the road keeping the drunk drivers under control. We want to have schools open.
LEHMAN: Opponents say its bad policy to raise taxes on businesses during tough economic times. Oregons unemployment rate is among the nations highest, at 11 percent, and the business funded group fighting the measures claim the hikes would lead to tens of thousands of layoffs. Pat McCormick is spokesman for the group. He says supporters unfairly painted businesses as greedy fat cats.
Mr. PAT MCCORMICK (Spokesman, Conkling Fiskum & McCormick): They went after businesses in Oregon as though they were Wall Street bankers and credit card companies and called them such. They went after people they said were rich and trying to generate that sort of a class warfare distinction that said those folks arent doing their fair share, really didnt reflect the kind of Oregon standards that I think weve seen in the past and thats disappointing.
LEHMAN: But it wasnt voter rage against big business that fueled this vote, says longtime Oregon political analyst Jim Moore with Pacific University. It had more to do with a broke state government.
Professor JIM MOORE (Political Science, Pacific University): If there was anger, it was anger that people have seen Oregon cut back its government, basically nonstop since the early 1990s. And with the recession, more people saw the effects of that.
LEHMAN: The legislature already cut $2 billion from last years spending plan and would've had to cut an additional $700 million if these measures had failed.
(Soundbite of applause)
LEHMAN: But even as supporters celebrated their victory, legislative leaders were quick to warn the results only mean the continuation of state services at their current cutback levels. Democratic House Speaker Dave Hunt.
Speaker DAVE HUNT (Oregon House of Representatives): Our schools are not where they need to be. Our health care system is not where it needs to be. Our public safety services are not where they need to be. And our - the health of our business (unintelligible) is not where it needs to be. In all those cases, though, this moves the ball forward tonight, but weve got more work to do.
(Soundbite of cheering)
LEHMAN: Hunt said lawmakers will consider ways to reform Oregons tax systems during a month long special session that starts next week.
For NPR News, Im Chris Lehman in Salem, Oregon.