Oregon lawmakers pass small-business tax break

(Update: Lawmakers approve tax break)

SALEM, Ore. (AP) – Lawmakers passed a tax break aimed at helping some small businesses in Oregon during a one-day special session Monday, though election-year politics made it anything but harmonious.

Gov. Kate Brown called legislators back to the Capitol for the session. The Democrat Brown and legislative leaders in the majority party emphasized keeping the session focused only on passing the new break, which targets small businesses known as sole proprietorships, and limiting it to a single day.

The plan passed 51-8 in the House and 18-12 in the Senate. Both tallies included Democrats who broke from their party to vote against the plan, as well some Republicans who voted for it.

Republicans objected to the limited scope of the plan, as early numbers showed it benefiting established businesses more than struggling entrepreneurs. A limit in the bill disqualifies about 90 percent of the state’s smallest businesses, according to nonpartisan economists.

The move is the latest reverberation from President Donald Trump’s 2017 federal tax overhaul. Democratic legislators blocked part of that plan after finding it would benefit some Oregon businesses twice — and cost the state $217 million in its first two years.

But Republican legislators objected, and when Brown okayed the block, she promised to call a special session to create a different break for small businesses.

The bill expands the list of small businesses eligible for preferential treatment under Oregon’s state tax laws.

Many Republicans said it was a step in the right direction, but was not enough.

Knute Buehler, the Republican nominee to take on the governor this fall, said he would support the bill but wants to see more done for small businesses.

Many Republicans who were voting for the bill said they felt it lacked in some areas and they would like to see more tax cuts in the coming year.

After the vote, Brown released a statement saying that she was happy about the results of the session and will keep working to create a strong and inclusive economy.