Oregon Public Broadcasting

In November, Oregon voters will face a dozen ballot measures. Measure 59 hasn't gotten a lot of attention yet, but would allow an unlimited federal tax deduction on state tax returns.

Now a liberal Oregon think tank says that law would be harmful to more than 3/4 of Oregonians. Ethan Lindsey reports.

The Oregon Center for Public Policy says the income tax deduction will average more than $15,000 for wealthy Oregonians.

But as for middle-income and poor taxpayers, policy analyst Michael Leachman says most can already deduct more than $5000 from their state taxes.

Michael Leachman: “The current cap is quite high, so most Oregonians are able to fully deduct their federal income taxes.”

The report also says the state budget analysis of the tax could be off.

Leachman says the state numbers don't take into account likely national tax changes, like the extension of some of President Bush' tax cuts.

Michael Leachman: “The question of whether the total cost will be $1.1 billion or $2.4 billion is like going in for a check up and your doctor is gonna take off your leg at the knee or at your waist.”

Measure 59 is backed by anti-tax activist Bill Sizemore. Sizemore unsuccessfully pushed a nearly identical bill in the year 2000.