Change the world - and don't spend a dime. Use your Oregon Political Tax Credit.
Kari Chisholm
Listen up, folks. Big money rules our political system. Big corporations and wealthy individuals dominate the financial landscape for elected officials.
We should work to reform the system, to be sure, but there's already one big reform in place that allows regular folks to fight back. And it doesn't cost you a dime. But you have to take advantage of it by the end of this year.
The Oregon Political Tax Credit is one of those progressive ideas that makes Oregon a great place to live, work, and play.
Through our tax system, the State of Oregon gives each tax-paying Oregonian a $50 gift. But you can't keep it. Instead, you must either pay it back in state taxes -- or donate it to a qualified political campaign or cause.
To put it another way: By donating $50 to a political campaign of your choice, you can reduce your taxes or increase your refund by that same $50 (assuming you pay at least $50 in taxes). That's right: it's a full 100% credit, not a deduction.
The bottom line? By contributing $50 to a progressive political campaign, you can make Oregon a better place - and it won't cost you a dime. Married, filing jointly? It's $50 per person - so you and your spouse can donate $100 and get it all back!
So what are you waiting for? Make a $50 donation, right now, to a candidate or political committee that you believe in. (And for your convenience, we've got all the Democratic statewide candidates in that blue box to the right.)
More info at a little site I maintain, OregonTaxCredit.com.
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connect with blueoregon
Dec 27, '07
Yeah, this is indeed a great system. But it is not totally correct in that it won't cost you a dime, it will cost you the opportunity cost of that $50 until you receive it back as a credit in a few months.
12:44 p.m.
Dec 27, '07
Hmmm... I suppose that's technically correct. Think of it as loaning the campaign $50 from now until the state pays you back in your taxes without interest.
If you file your taxes in early January and owe - you get it right back (since your check will be less by $50.) If you file your taxes in early January and get a refund in early February, well, it'll have been about six weeks or so.
Small price to pay to change the world.
1:45 p.m.
Dec 27, '07
Kari calls the political tax credit "one of those progressive ideas" that makes Oregon great.
I must respectfully disagree. The credit is icing on the cake for the politically involved that costs taxpayers and the programs they enjoy - schools, public safety, health care, etc. - about $12 million a biennium.
Progressive? The wealthiest 40 percent of taxpayers comprise 79% of those using the credit, and they use 84% of the credit's actual cost. Among all taxpayers only 5.1 percent use the credit, but among the 5 percent of taxpayers with the highest income, 17 percent use the credit (compared to 1.8 percent of the 60 percent of taxpayers at the other end of the income spectrum). The credit is not "refundable" so many of the lower income taxpayers don’t get the full $50 back.
When it comes to contributing money to political causes, those with the money play more than those without.
Frankly, I think it makes little fiscal sense for Oregon to pay Phil Knight et al to contribute to political campaigns. And doing so is not progressive.
5:38 p.m.
Dec 27, '07
Chuck,
Could this tax credit allow people that would normally not seek public office to change their minds? 12million is not much when you consider how much money is spent in politics now days.
Fred
Dec 27, '07
Chuck has an interesting point that the political tax credit might not be "progressive" in the sense of "progressive taxation".
However, I still think the $50 credit is a progressive program overall because it helps campaigns with popular support to raise funds from a broad-based membership; and part of what it means to be progressive, is believing that popular campaigns should have access to at least some public support.
The tax credit might not be perfect, like Kari says, it's one of the things that makes Oregon great.
10:11 p.m.
Dec 27, '07
It is not just for public office - issue campaign political action committees use it too - Oregon Right-to-life PAC,the Oregon Restaurant Association's PAC, etc. There is no data available regarding use of the tax credit for candidate elections (donations to candidate committees) vs. donations to special or public interest PACs for candidates and issue (initiative and referrendum) committees.
There's no evidence that this increases or ensures popular support for a candidate. Nor is there any evidence that this is a significant motivator for enough donors to get a candidate without resources to decide to run.
If the state instead took the $12 million and divided it among the 60 house campaigns and 15 senate campaigns each biennium it would total $160,000 per race. Now, offering the final two candidates $80,000 might be a motivator. But that's now how it works today.
11:44 p.m.
Dec 27, '07
Hmmm... Well, it may be true that the people that use it are predominantly wealthy folks. But that sounds like a problem of marketing -- because it applies to anyone that has over $50 in tax.
A few years ago, the Oregon Political Tax Credit lost its dedicated line on the Form 40 and had to be claimed under "other credits." It has since come back. I suspect that in that year, it was only taken by people with professional tax preparers.
Personally, I think it should be on the short form 40S as well - again, so lower-income folks would take it.
Better yet, I'd support scrapping it altogether and replacing it with a "Democracy Dollars" voucher system that sends every Oregonian a $50 voucher that could be deposited with a candidate of their choice. In essence, a voluntary public campaign finance system that encourages grassroots organizing. (More on that later....)
11:50 p.m.
Dec 27, '07
Oh, and one more thing. $12 million per biennium? Sure, that's real money, but the Governor's last budget was $6.06 billion just for K-12.
In other words, even if it came entirely out of K-12, that would be one-fifth of 1% of the K-12 budget.
Dec 28, '07
R.P. Joe Smith, who is a very smart and wise man, has long championed the idea of "Democracy Dollars." I think it's a great idea. It may not be a way to take the money out of politics, but it is a way for those of us who are not rich to make our preferences count.
10:18 a.m.
Dec 28, '07
One last thought: We might disagree, Chuck and I, on the wisdom of the policy - but I think we agree on the importance of donating $50 to your preferred progressive candidate.
Dec 28, '07
Kari - Great idea. Thanks for posting.
Only problem is I called the Democratic Party of Oregon office on NE 9th to find out when they would be open to accept my $50 in person. They (we?) are closed for the rest of the year.
I bet the elephants are open for business!
Liars Larsen
12:23 p.m.
Dec 28, '07
LL -- You can donate right here.
1:40 p.m.
Dec 29, '07
Remember that you can also use your tax credit to donate to your local county parties. Your local county party in cooperation with the DPO and the DNC, finds candidates to run in local elections, supports candidates during their elections and keeps the local activists engaged building team during the off election time.
I think contributing your $50 tax credit to your local county party is the best way to ensure that we have a true blue state that represents all of Oregon. If you aren't sure what your county party is up to, I encourage you to find out and get involved.
If you are having trouble donating to other organizations because they are closed, no one answers the phone or you aren't sure how to contact them then you can go to www.dplc.org and contribute to my county party. I can assure you that the Democratic Party of Lane County (DPLC) will use the money to get Democrats elected in 2008.
The bonus is for your $50 you can support Democrats in Lane County and also become a bona fide card carrying member of the DPLC. You will be sent a membership card that you can pull out and be the envy of your friends.
<h2>Val</h2>