Oregon voters OK tax hikes on wealthy, businesses

Measure 66 raises tax rates on individuals who earn more than $125,000 and couples with incomes greater than $250,000. Measure 67 increases business taxes. Fifty-four percent of voters had approved both measures with more than 80 percent of the vote counted late Tuesday.

It was a victory for public employee unions and the Democratic majorities in the Legislature that imposed the taxes last year, arguing that deep cuts in school aid and social services were the alternative for a state facing declining revenues due to the recession.

It was a defeat for business groups who sponsored a referendum drive to put the taxes to a statewide vote, saying they would cost a state with 11 percent unemployment even more jobs.

The revenue from the new taxes, $727 million, is expected to account for about 5.5 percent of the general fund in the next two-year budget.