Politics & Government
Portland Budget: Mayor's Tax Proposal Appears Dead on Arrival
Would have raised the tax rate on business income to 2.5 percent from 2.2 percent.
A proposal from mayor Hales to raise the tax on businesses appears dead.
The proposal - which would have raised the tax on business income to 2.5 percent from 2.2 percent - was the centerpiece of the proposed the budget that the mayor unveiled last week.
Two members of the City Council - Steve Novick and Dan Saltzman - immediately said they would not support it.
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On Tuesday, during a Council work session, Commissioner Nick Fish also said he could not support the tax hike, effectively killing it.
Hales had said that the increase would have brought an additional $8.7 million into city coffers.
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The proposal wasn't helped by the fact the city is already in pretty good economic shape, with a $25.6 million budget surplus.
While the proposal appears dead, the Council has not taken a formal vote it and while apparently unlikely, the mayor could still persuade his colleagues to change their mind.
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