The following transcript was generated using automated transcription software for the accessibility and convenience of our audience. While we strive for accuracy, the automated process may introduce errors, omissions, or misinterpretations. This transcript is intended as a helpful companion to the original audio and should not be considered a verbatim record. For the most accurate representation, please refer to the audio recording.
Michael Dunne: I'm Michael Dunne. It was called “the one big, beautiful bill,” and it promised massive tax cuts for America. But to many in the states, the beauty was only in the eye of the federal government. Here in Oregon, a group of legislators is going so far as to try to detach the state from the federal law. Today on the show, you'll hear from a key sponsor of that proposal and from a business group that opposes it. It's a battle between the federal government and the state over who gets to decide Oregon tax policy.
Then, in the second part of the show, our own Rachel McDonald talks about a recent tragic accident in Eugene and how a coalition of residents and officials is trying to improve road safety.
Sen. Anthony Broadman, a Democrat from Bend, welcome to the show.
Anthony Broadman: Hey, Michael. How are you?
Dunne: I'm good. So, as I understand it, you and Rep. Nancy Nathanson from Eugene have put forward a proposal aimed at the federal bill passed last year, called H.R. 1. What does your proposal do?
Broadman: The number one thing it does is put more money in Oregonians’ pockets and invest in Oregon businesses. This is a time when life has become really expensive for Oregonians as a result of the tax package. H.R. 1, or what some people call the “big beautiful bill,” isn’t beautiful at all for Oregonians. It’s causing people to spend more just to survive, and it’s a tax cut primarily for the wealthy that doesn’t help us grow businesses here.
Dunne: Remind folks what H.R. 1 specifically would do to Oregon.
Broadman: We are connected to the federal tax code in Oregon law. This tax cut took about $900 million out of our state budget overnight, and that happens automatically because Oregon’s tax code is tied to the federal tax code.
Dunne: Explain how your proposal would work and how it could move from proposal to law.
Broadman: It does two primary things. It increases the earned income tax credit for the lowest-earning Oregonians, putting more money in their pockets. It also creates an Oregon jobs tax credit that lowers taxes for businesses that grow jobs in Oregon. It does that by cutting aspects of H.R. 1 that are primarily aimed at benefiting larger businesses and the wealthy.
Dunne: When a federal bill gets passed, does it supersede state law? Or can a state legislature say it won’t follow those provisions?
Broadman: That’s exactly what we’re doing. We’re passing Oregon tax laws that reflect Oregon values. Normally, Oregon’s tax code connects directly to the federal tax code. But we’ve heard from nurses, law enforcement, educators and others that this is a moment when Oregon’s tax code needs to stand on its own.
Dunne: I imagine there’s opposition. What would you say to critics?
Broadman: There is opposition. I thought this might be bipartisan because it supports people who need help and cuts taxes for businesses that create jobs. The provisions we’re changing are ones other states have already changed. We’re ending one category of bonus depreciation that most states have already moved away from. We need to compete with other states for jobs and economic growth.
Dunne: Your colleague Rep. Nathanson has said this could help Oregon be more competitive. Expand on that.
Broadman: It’s about focusing on what we need: more jobs and higher-paying jobs. The jobs tax credit directly lowers costs for businesses hiring Oregonians. We want to support companies that grow here, not ship tax benefits out of state to large corporations.
Dunne: Do you think public opinion has shifted as people see the effects of the law?
Broadman: People understand what these cuts have done. They’ve made life more expensive. The lowest-income households are projected to lose income, while the very top earners gain substantially. Oregon households are already seeing higher costs.
Dunne: Sen. Anthony Broadman from Bend. Thanks for joining us.
Broadman: Thanks, Michael.
Dunne: Now you’ll hear from a business group that is strongly opposed to the proposal. Angela Wilhelms is president and CEO of Oregon Business & Industry. Thanks for talking with us.
Angela Wilhelms: Thanks for having me.
Dunne: Legislators say Oregon would reclaim state money lost to H.R. 1. What’s your organization’s position?
Wilhelms: There are actually three parts to this proposal. One would eliminate certain auto loan interest deductions for Oregonians who need financing to buy a car. Second is Section 1202, a Clinton-era policy related to qualified small business stock. It’s a decades-old program that helps small and growing companies reinvest in their people and operations.
The third provision involves bonus depreciation. That’s really about timing. It changes when a company can expense investments and when the state sees revenue, not whether the state sees that revenue. The state might see more money now but less later, while also taking away a tool businesses use to grow.
Dunne: You’ve said disconnecting from federal tax definitions is short-sighted. Why?
Wilhelms: Oregon is already losing private-sector jobs in manufacturing, agriculture and other capital-intensive industries. Tools like bonus depreciation help companies invest in equipment, expand production and hire workers. Taking that tool away moves us in the wrong direction.
Dunne: Are there tax changes you think would better serve Oregonians?
Wilhelms: We support a comprehensive conversation about Oregon’s tax structure. The state relies heavily on personal and business income taxes, and there are structural issues worth addressing. But piecemeal changes add complexity without solving the bigger problems.
Dunne: Do you think there’s enough opposition to stop the proposal?
Wilhelms: We hope so. This is complicated policy, but Oregonians want real solutions to affordability and long-term budget stability. Taking away tools that help local businesses grow is not the answer.
Dunne: Angela Wilhelms, president and CEO of Oregon Business & Industry. Thanks for your time.
Wilhelms: Thank you.
Dunne: Now let’s turn to how a terrible bike accident may lead to changes on a major Eugene street. You hear her every afternoon on our air. Rachel McDonald, host of All Things Considered, thanks for coming in.
Rachel McDonald: Happy to be here.
Dunne: You recently reported on calls for changes on Patterson Street in South Eugene. Give us an overview.
McDonald: On Jan. 25, a 30-year-old Ph.D. student was hit and killed while riding his bicycle at Patterson Street and 22nd Avenue. Neighbors and advocates say it’s too easy to speed there and want safety improvements.
Dunne: Tell us about the cyclist.
McDonald: Erick Njue was from Kenya and studying special education at the University of Oregon. In a short time, he touched many lives. A GoFundMe to return his body to Kenya has raised more than $74,000, and the university’s College of Education has established a memorial fund in his name.
Dunne: You spoke with transportation advocates about street design.
McDonald: Yes. Advocates say streets like Patterson, which is one-way with two lanes, encourage speeding and create confusion for drivers, pedestrians and cyclists. It can feel safe to cross until cars suddenly approach much faster than expected.
Dunne: You also talked with residents.
McDonald: Many described how difficult it is to cross safely. Families live nearby, and there are schools and community facilities in the area. People are deeply concerned, especially after a fatal crash.
Dunne: What is the city saying?
McDonald: The city plans to conduct a speed study to gather data before making changes. Officials also emphasized that pedestrians have the right of way at any intersection, even without a marked crosswalk, and drivers must stop if another vehicle is yielding.
Dunne: There’s now a ghost bike at the site.
McDonald: Yes. It’s covered with flowers and includes signs urging drivers to slow down. It’s a sobering memorial and a call for change.
Dunne: How can the public get involved?
McDonald: Better Eugene-Springfield Transportation is holding a safety forum from 6 to 8 p.m. at Roosevelt Middle School.
Dunne: Rachel McDonald, thanks for talking with us.
McDonald: Thank you.
Dunne: That’s the show for today. All episodes of Oregon On The Record are available as a podcast at KLCC.org. Monday, on Presidents Day, we talk with a local expert on the presidency and how individual leaders have shaped the nation.
I’m Michael Dunne, host of Oregon On The Record. Thanks for listening.
