GOP contenders oppose tax increases

SALEM (AP) - Two Repub-lican candidates for governor said Wednesday that legislators should rule out raising taxes to deal with a state budget shortfall.

"They should agree tax increases are off the table," Jack Roberts said at a news conference. "Oregonians are paying enough in taxes."

Senate President Gene Derfler, R-Salem, has appointed a Senate panel to study revenue-raising options in preparation for a special budget-balancing legislative session that's expected to be held in January or February. Derfler formed a separate committee to consider budget cuts.

Candidate Ron Saxton said, "It's the wrong time to be talking about tax increases. Especially with economy being as bad as it is, we need to be getting more money into the private economy."

Saxton said the state budget picture would have to be much worse before he would consider tax increases. He said he "can't imagine it would be so bad I would favor a corporate income tax increase."

Among revenue-raising options in a background paper sent to top lawmakers by the Legislative Revenue Office is a corporate income surtax. A 2 percent surtax would raise an estimated $11 million.

State economists reduced their 2001-03 revenue projections by about $300 million three months ago, mainly due to declining income tax collections. They are to issue a new forecast Friday that legislative leaders expect will show a bigger drop.

Derfler has said he doesn't support tax increases at this time, but that the subject is sure to come up for discussion.

He also said he doubts if there's enough support for tax boosts to muster the three-fifths majorities in each house that are needed to approve them.

Roberts, who's state labor commissioner, said a legislative debate over tax increases would "waste our time on something that's only going to be divisive."

While not saying where he'd trim the budget, Roberts said legislators should protect programs for people who have lost jobs or health insurance.