2009 Legislative Session Was Bad for Business

By Rep. Matt Wingard (R-Wilsonville)

With a poor economy and record-high unemployment, the Legislature should have improved Oregon’s business environment. After all, healthy businesses create jobs and generate the tax revenue we need to balance the state’s budget. Unfortunately, the 2009 Legislature defied common sense by raising taxes and passing mandates that will further slow our recovery.

You’ve likely heard about the permanent income and corporate tax increases that were approved. Salem used the current economic crisis as an excuse to not only raise the corporate minimum tax, but create a new tax structure that will hurt businesses regardless of their profitability. I encourage all chamber members to help put these tax measures on the ballot and give Oregonians a voice on this important issue. For more information, visit www.stopjobkilling taxes.com.

Corporate and income tax increases dominated the headlines, but you may have missed other new laws that could affect your bottom line. These include a new premium tax on health insurance that will further harm the ability of small businesses to provide coverage to their employees. The Legislature passed dozens of fee increases that will be passed to consumers who are already struggling to pay their bills. Businesses with high transportation costs will soon pay even higher gas taxes and registration fees. While this revenue will be directed to worthy transportation projects, Salem refused to utilize hundreds of millions in savings that could have been better spent on infrastructure.

In addition to tax and fee increases, the Legislature passed dozens of new regulations and mandates. For example, the Legislature passed a new employer “gag rule” that strips businesses of their right to require employee attendance at meetings that occur on company time. The Legislature passed a bill to give state agencies unprecedented power to regulate and punish businesses, such as allowing DEQ to enact fuel standards and excessive mandates on transportation equipment and parts. The Legislature also expanded Oregon’s product liability laws to enrich trial lawyers while exposing businesses to more expensive and frivolous lawsuits.

As your representative, I understand that Oregon needs a healthy business environment to create jobs. Some of my colleagues and I were successful in helping to stop bills that were even worse than those I’ve described, such as a statewide “cap and trade” program that would put our businesses at a competitive disadvantage. We helped stop a “product stewardship” bill that would give DEQ the ability to regulate, and ultimately ban, certain products. Democrats also failed to pass bills such as paid family leave and prevailing wage expansion, but they’ll likely attempt to pass these in future sessions.

Republicans introduced bills to reform Oregon’s minimum wage law by connecting automatic indexing to the unemployment rate. We sought to give employers the ability to keep medical marijuana away from the workplace, and boost our economy by providing tax credits to businesses and homeowners who invest in improvements to their properties. Unfortunately, all of these pro-growth proposals were killed by the Democratic majority. Overall, the 2009 Legislature was great for trial lawyers and unions. Precious little was done to encourage private sector job growth or to reform the regulatory environment for small businesses in Oregon.

September GAC Meeting

Catalyst

Government Affairs Committee

NEXT MEETING - Wednesday, September 2, 2009

Noon – 1:00 PM at Visitor Center

GAC members will have an opportunity to hear from Mark Clemons of Group Mackenzie, a northwest planning and engineering company, commissioned by the Oregon Business Development Department (The Oregonian, Aug. 9, 2009), to develop an economic model for predicting the economic value of new employment lands. Mark will explain how the model works and the result of work for the Wilsonville area.

Mr. Clemons presented to the Clackamas County Economic Development Commission at its meeting on July 22, 2009 a prototype study done for land in Washington County. The model analyzed the value of land bordering U.S. 26 west of the City of Hillsboro that the city wants earmarked industrial. As some of you are aware, I am a member of the Clackamas County Economic Development Commission. The Commission receives an update on the Urban and Rural Reserves process at nearly every meeting since I started serving on the Commission. County Commissioners Jim Bernard and Charlotte Lehan graciously gave up their time on the Commission’s Agenda for this presentation. I probably would be unaware of Group Mackenzie and its study had I not been a Commission member.

Group Mackenzie’s analysis quantified the economic output of existing employment lands and then used this data to project the economic output of an area immediately adjacent to the City of Hillsboro being considered for urban reserve designation. The economic output is measured in terms of payroll taxes, property taxes and market value. This model evaluates the financial productivity of employment lands and the importance of clustering employment lands to enhance economic outputs.

The Clackamas County Business Alliance (CCBA) has contracted with Group Mackenzie to apply the economic model to areas in Clackamas County. Data from existing industrial/employment areas will be applied to potential urban reserve areas to better gain an understanding of the possible economic impacts of clustering employment lands GAC’s invitation to Group Mackenzie to speak at its September meeting is in response to the Chamber’s Vision – Create and promotes economic vitality for business in the south metro area – and Mission – Business is the priority. These directions motivate Chamber leadership to provide members with as much information as available regarding any proposal with a potential for impacting a member’s economic future, in this case the reserves process. Furthermore, GAC members have consistently requested input from all sides regarding an issue before the Committee is asked to recommend to the Board of Directors whether the Chamber should take a position on an issue and the position to be taken.

Defending Free Enterprise, US Chamber to Launch Major Campaign

(This article originally ran in the US Chamber's Magazine)

Rapid government expansion and increased taxes, regulations, entitlements, debt, and attacks by anti-business activists--all are evidence that the American free enterprise system is faced with unprecedented challenges.

A new U.S. Chamber initiative, the Campaign for Free Enterprise, will rally small businesses, local chambers, policymakers, and the general public to stand up for free enterprise, entrepreneurship, and economic opportunity.

"It's time to remind all Americans that it was a free enterprise system based on individual initiative, hard work, risk, innovation, and profit that built our great country," says Chamber President and CEO Tom Donohue. "We must reaffirm the spirit of enterprise in America."

The campaign, which will formally launch this fall, will include:

* Grassroots outreach to the Chamber membership.

* A vigorous media, new media, and public education program with a special focus on the economic literacy of younger Americans.

* A highly visible national paid media advertising effort.

* Education of governors and mayors on the avalanche of new rules, restrictions, mandates, and taxes that could seriously undermine the wealth and job-creating capacity of small businesses in their areas.

* An aggressive issue advocacy program, leading up to the 2010 elections, to educate citizens on the critical economic issues facing our country.

* Ongoing public opinion research.

* Gatherings of academics and thought leaders to build the intellectual argument for free enterprise, open capital markets, and global engagement.

* Lobbying to defend free enterprise values and to advance pro-growth legislation, and, where necessary, taking legal action to challenge unconstitutional and unlawful government regulations.

The Chamber is urging its members to sign up online to become a supporter of the campaign. Supporters will receive ongoing updates on ways to participate, including contacting lawmakers, attending events at state and local chambers nationwide, and taking part in surveys and polls on policy, regulations, and the state of the economy.

Join the campaign at http://www.uschambermagazine.com/freeenterprise/.