|
First Three Years Tax Saving
(See Note A)
Expected Effects on Oregon Income Tax Collections
| In Fiscal Year
| 2007-08
| 2008-09
| 2009-10
|
| Projected General Fund Revenue |
$5,729,000,000 |
$6,889,000,000 |
$7,415,000,000 |
| Projected Income Tax Revenue |
$5,017,000,000 |
$6,273,000,000 |
$6,669,000,000 |
| Est. Oregon Income Tax Reduction (Note B) |
$355,000,000 |
$407,000,000 |
$430,000,000 |
| Net Est. Oregon Income Tax Reduction (Note C) |
$204,000,000 |
$407,000,000 |
$430,000,000 |
| Net Average Est. Oregon Tax Saving per Filer |
$217 |
$225 |
$238 |
* Details (Note D)
2007 Tax year
Tax Year 2007
Earnings
| # of
Returns
| Tax Saving
Total Per Filer
| Saving/
Percent
| Saving for Deductions
Deduction 2 4 6
|
| Less than $10,000 |
342,766 |
$4,076,843 $12 |
18.5% |
$10 $20 $40 $59 |
| $10,000 - $20,000 |
279,766 |
$28,382,815 $101 |
24.5% |
$60 $119 $239 $358 |
| $20,000 - $30,000 |
222,281 |
$42,565,285 $191 |
19.4% |
$96 $191 $383 $574 |
| $30,000 - $40,000 |
177,080 |
$44,954,522 $254 |
16.1% |
$121 $242 $484 $725 |
| $40,000 - $50,000 |
141,226 |
$42,678,765 $302 |
14.0% |
$131 $263 $526 $788 |
| $50,000 - $70,000 |
211,126 |
$73,722,333 $349 |
11.3% |
$140 $279 $559 $838 |
| $70,000 - $100,000 |
184,126 |
$74,552,474 $405 |
8.5% |
$145 $289 $578 $868 |
| $100,000 - $200,000 |
140,807 |
$59,538,739 $423 |
4.9% |
$151 $302 $604 $906 |
| Over $200,000 (Note E) |
42,369 |
$8,084,837 $191 |
0.5% |
$66 $132 $263 $395 |
| Total All Filers |
1,741,547 |
$378,556,615 $217 |
7.1% |
|
2008 Tax year
Tax Year 2008
Earnings
| # of
Returns
| Tax Saving
Total Per Filer
| Saving/
Percent
| Saving for Deductions
Deduction 2 4 6
|
| Less than $10,000 |
336,837 |
$3,958,776 $12 |
19.0% |
$10 $20 $39 $59 |
| $10,000 - $20,000 |
277,405 |
$28,062,566 $101 |
24.8% |
$60 $119 $238 $357 |
| $20,000 - $30,000 |
221,509 |
$42,348,770 $191 |
19.4% |
$96 $191 $382 $574 |
| $30,000 - $40,000 |
177,111 |
$45,277,873 $256 |
16.1% |
$122 $243 $487 $730 |
| $40,000 - $50,000 |
142,078 |
$43,269,034 $305 |
14.0% |
$132 $265 $530 $794 |
| $50,000 - $70,000 |
214,217 |
$75,227,863 $351 |
11.3% |
$140 $281 $562 $843 |
| $70,000 - $100,000 |
191,718 |
$78,837,228 $411 |
8.5% |
$147 $294 $587 $881 |
| $100,000 - $200,000 |
151,967 |
$65,713,011 $432 |
5.0% |
$154 $309 $618 $927 |
| Over $200,000 (Note E) |
46,459 |
$13,192,605 $284 |
0.7% |
$98 $196 $392 $588 |
| Total All Filers |
1,759,299 |
$395,887,725 $225 |
7.0% |
|
2009 Tax year
Tax Year 2009
Earnings
| # of
Returns
| Tax Saving
Total Per Filer
| Saving/
Percent
| Saving for Deductions
Deduction 2 4 6
|
| Less than $10,000 |
330,501 |
$4,035,825 $12 |
20.0% |
$10 $20 $41 $61 |
| $10,000 - $20,000 |
274,562 |
$28,719,804 $105 |
25.7% |
$62 $123 $246 $369 |
| $20,000 - $30,000 |
220,332 |
$43,488,926 $197 |
19.9% |
$99 $197 $395 $592 |
| $30,000 - $40,000 |
176,802 |
$46,898,891 $265 |
16.6% |
$126 $253 $505 $758 |
| $40,000 - $50,000 |
142,705 |
$45,109,842 $305 |
14.4% |
$137 $275 $550 $825 |
| $50,000 - $70,000 |
217,215 |
$79,018,444 $364 |
11.6% |
$146 $291 $582 $873 |
| $70,000 - $100,000 |
199,283 |
$85,845,566 $431 |
8.9% |
$154 $308 $615 $923 |
| $100,000 - $200,000 |
163,644 |
$74,588,437 $456 |
5.2% |
$163 $326 $651 $977 |
| Over $200,000 (Note E) |
50,824 |
$15,551,756 $306 |
0.8% |
$106 $211 $422 $633 |
| Total All Filers |
1,775,869 |
$423,257,492 $238 |
7.1% |
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Explanatory Notes:
NOTE A
Measure 41 provides Oregon Income Taxpayers the option of using either the Oregon Tax Credit of $154 or the Federal Tax Deduction of $3200 per itemized deduction, thereby conforming to federal guidelines. These amounts are indexed for inflation and are therefore expected to change slightly each year.
NOTE B
Estimated Oregon Income Tax Reduction and Total Tax Saving for all filers do not match exactly due to timing of the accrual of the tax liability and payment of the tax not matching for all taxpayers.
NOTE C
In 2007-08 only the total estimated individual income tax saving and cost to the state are reduced by the lag effect of the individual kicker tax refund being reduced in the first year of implementation.
NOTE D Total Individual tax savings in all years should result in an increase in individual Federal Income Taxes owing to a smaller deduction for Oregon Income Tax paid resulting from the tax saving in this measure. This is expected to range from $40 to $45 million in total during tax years 2007 to 2009, respectively, which amounts to between ten and eleven percent of the expected Oregon tax saving.
NOTE E
There is proportionally less saving in the "$200,000 & Over" income category owing to federal deductions being means tested, and Oregon taxpayers therefore electing to continue taking the Oregon tax credit instead of the federal deduction, as provided under this measure.
Tables compiled by Ross A. Smith, forty-year member of the American Institute of C.P.A.s, based on data supplied by the Oregon Legislative Office.
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