Oregon Center for Public Policy: The 2007 Kicker: Wrongheaded, Unjust, Costly, and a Federal Tax Increase
ITEP Work in ActionThe “close of session” economic and revenue forecast released in late August by the Office of Economic Analysis confirmed that personal income tax revenues for the 2005-07 budget cycle exceeded the 2005 close of session forecast by 2 percent or more.1 Under Oregon law, the Department of Revenue will send – or “kick back” – the entire amount of unanticipated personal income tax revenue by December 15, 2007. The legislature chose not to redirect the unanticipated funds, known as “the kicker,” to a reserve account or toward investments in public structures.2
The close of session forecast certified that the personal income tax kicker will total almost $1.1 billion ($1,071,200,000). Taxpayers will get checks equal to 18.6 percent of their 2006 state income tax liability.