Tax Hikes in Jeopardy? [Updated]

This has been an entertaining week in Salem. On Tuesday, the House passed two bills that would raise $733 million--tax hikes for wealthy individuals and businesses. For cash-strapped public institutions like ours, this was good news. On to the Senate and then to the governor for a quick signature.

But wait!--yesterday, Senator Mark Hass stepped across the aisle to stand with Republicans and the two bills failed to pass. Haas said he wants the tax increases to sunset after the recession ends. A stunned Democratic caucus retired last night wondering if the deal was dead.

Maybe on life support. Today the Oregonian's Jeff Mapes reports that there's behind-the-scenes wrangling, but no plan yet:

That's an important point to Democratic leaders, who are promoting the hike in corporate taxes as not only necessary to get through the recession but as part of increasing fairness in the tax system. They've argued that the state will be digging out of the budget wreckage for years to go come and that business should contribute its fair share.

Plus, if the Senate changes the tax package, it has to go back to the House. And who knows what the politics there are like after all the fuss about Republican Bob Jenson's decision to defect from his caucus and give Democrats the crucial 36th vote they needed.

Stay tuned.

Update. The bills have passed, and not temporarily. The Statesman Journal reports:

After a one-day delay, the Oregon Senate voted today for an increase in corporate income taxes that will produce an estimated $261 million to balance the next two-year state budget. House Bill 3405, which goes to Gov. Ted Kulongoski, passed on an 18-11 vote. All Democrats voted for it; all Republicans against it. One Republican was excused.

The one-day logjam was broken when Democratic Sen. Mark Hass of Beaverton agreed to vote for the bill in exchange for another bill, pending in the House Revenue Committee, that would divert money from permanent increases in the corporate tax after 2012 into the state’s general reserve fund.

Good news!