Behind the taxes

How the deal for new taxes was struck.

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After an unexpected setback, the Senate passed two bills raising taxes on businesses and upper-income residents.

A day ago, the new taxes appeared in doubt when one Democrat, Sen. Mark Hass of Beaverton, broke ranks and voted with Republicans to shoot down a package of corporate tax increases. Without the new revenue, estimated at $733 million over two years, lawmakers would have been forced to reopen budget talks and cut deeply into school spending and other state programs.

But under a deal hammered out in late-night negotiations, Hass agreed to support both tax measures if some of the increased corporate taxes were diverted into the state’s rainy day fund.

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