SALEM, Ore. (AP) — Republicans may have defeated Democrats' first stab at raising taxes on corporations and the rich this week, but that doesn't mean tax increases are out of the picture.
There's plenty of time left for a compromise before the June 30 deadline for lawmakers to approve a new state budget, and Republicans say they're willing to talk.
By demanding tax increases, which require a three-fifths supermajority, Democrats have handed a powerful bargaining chip to the GOP minority. Republicans have named their price. They want steeper cuts to public-employee pensions in exchange for additional revenue.
Republicans were emboldened by the failure of a Democratic effort to raise $275 million in additional revenue. They say Wednesday's vote shows they can stick together in their effort to secure more aggressive pension cuts.