11/21/03

CLACKAMAS -- Opponents of a recently adopted $800 million tax increase kicked off their campaign to repeal it Thursday night, confidently announcing they have gathered enough signatures to put the issue to a statewide vote.

At a rally that attracted more than 300 people and featured former U.S. House Majority Leader Dick Armey, leaders of the tax referendum effort said they plan an aggressive campaign to focus voter attention on the link between taxes and the economy.

"We want to be in a position to send a strong message to the Legislature," said Russ Walker, Oregon director of Citizens for a Sound Economy, a Washington, D.C., group spearheading the antitax referendum. "The message is, you don't raise taxes in a recession."

Armey, R-Texas, who has taken over as the group's national chairman, said he has had little to do with the Oregon effort. He added that he is only vaguely aware of the state's budget situation.

"I don't need to know that," Armey said before the rally. "All I need to know is what Oregon CSE wants. They're the best judge."

At the rally, Armey said his group takes on issues on a state-by-state basis. The group played a prominent role in defeating a proposed $1.6 billion tax increase in Alabama in September, he said, although he spent a total of only five hours in the state.

Armey said his national organization has grown to 330,000 members who "swear a certain allegiance, fidelity to each other" to fight for issues such as privatizing Social Security, adopting a "flat tax" to replace the federal income tax and restricting product liability lawsuits.

He said he left his job in the U.S. House after he grew tired of pampering Republican members who wouldn't go along with the rest of the party on conservative issues.

"I called them the bed wetters," Armey said to loud laughter, later suggesting the label could apply equally well to the 11 moderate Oregon House Republicans who joined Democrats to help pass the tax increase.

"The good news is it doesn't take much to scare them," he said. "We know who they are. They know who they are."

Walker said his group plans to turn in far more than the 50,420 signatures required to qualify the referendum for the ballot. The deadline for turning in petitions is Tuesday. If the referendum qualifies, voters will have their say Feb. 3 on what would be Ballot Measure 30.

Supporters already have printed banners with the slogan "Jobs, Not Taxes."

On the other side, supporters of the tax increase, which the Legislature adopted in August as a way to balance the state's 2003-05 budget, have formed the Our Oregon Coalition. They are preparing their own campaign.

Rejection of the tax increase, they say, will force the state to make devastating cuts in schools, public health programs and public safety. Harry Esteve: 503-221-8226; harryesteve@news.oregonian.com