An opinion piece in last Sunday’s Oregonian/OregonLive suggested changing the Oregon kicker so that every taxpayer receives the same refund, as opposed to the current system that bases an individual’s kicker on taxes paid by that individual, (“Opinion: If you truly care about working Oregonians, fix the kicker,” March 24). A simpler approach to reduce inequality is to reduce or eliminate taxes assessed on low-income taxpayers.
Oregon requires tax payments from families whose taxable income is at the federal poverty line. A family of three with a taxable income of $24,860 (the 2023 federal poverty level) must pay the state $1,604 according to the state Department of Revenue’s online tax calculator. The same family with a taxable income of $36,000 must pay $2,584, which is more than the amount that would come back to taxpayers under the system proposed by the authors.
Changing the law so that taxes begin at $36,000 would increase spendable cash from each paycheck, compared to Oregon’s kicker cycle, which operates every two years. This move would have no material impact on high-income taxpayers and would reduce the amount of revenue collected by the state, likely reducing future kickers.
And thank you for the article regarding MFS Cash Oregon and the services they provide to lower-income taxpayers, (“File your taxes for free: Here’s how eligible Oregonians can get help,” March 11). I volunteer there and find it difficult to explain to someone whose income is at the federal poverty line why they still owe money to the state.
Mike Wenzlick, Portland
To read more letters to the editor, go to oregonlive.com/opinion.