Senate OKs tax hikes

The bills now go to Gov. Ted Kulongoski, who is expected to sign them.

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The Senate has approved both tax bills on strict party line votes.

On Wednesday, the effort to approve higher taxes on corporations and upper-income taxpayers failed when a single Democrat, Sen. Mark Hass, of Beaverton, broke ranks and opposed it.

Hass sided with business lobbyists who want the corporate tax increases to be temporary. His rejection prompted a rare meltdown in a session that had been tightly controlled by Democratic leaders. But Hass, according to sources, has agreed to support the new taxes as long as they’re diverted into the state’s rainy day fund after 2013.

The idea for the diversion came from another Beaverton Democrat, Rep. Tobias Read.

Read more in the Oregonian.

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