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Sen. Mark Hass: 'Two-step dance' of tax reform, plus cost containment and a reduction in PERS benefits.

In the waning weeks of the legislative session, two leading Democrats have come up with a tax reform plan to address the state's $1.4 billion revenue shortfall.

The plan by Sen. Mark Hass of Beaverton and House Speaker Tina Kotek of Portland would raise an estimated $900 million in the next two years.

"Momentum is building to go forward with revenue reform this session. ... Now, we finally have a breakthrough," Kotek said Wednesday. "This plan, along with long-term cost containment, is our best chance to increase investments in education while also providing significant tax relief for small businesses and personal tax relief for middle- and low-income families."

Hass emphasized that the plan is a package that includes tax reform, containment of state government costs and reductions in state employees' pension benefits.

"These are hard votes for Democrats in the House, but I think they will vote for those, if they know there also is a revenue tax reform package. Without a revenue package, those won't pass, so this is a two-step dance. We have to have both."

If revenue reform fails this session, union leaders say they are poised to petition for a ballot measure to make corporations pay more taxes.

Hass and Kotek have yet to seek official approval from the Joint Committee on Tax Reform, which has to vote on the proposal before it can move to the House floor.

The plan would temporarily hike corporate income taxes in 2017 and 2018 from 6.6 percent and 7.6 percent to 8 percent and 9 percent, in order to help raise the $900 million.

The corporate income tax then would be repealed in 2019 and replaced with a commercial activity tax on businesses with annual sales of $3 million or greater. The change would effectively mean small businesses no longer would have to pay corporate taxes, only a $250 filing fee, Hass said.

The commercial activity tax would yield an estimated $1.1 billion in 2019-21.

Other states have pursued similar tax reforms to help stabilize their corporate income revenue, he said.

The five-tier rate is proposed at 0.75 percent for services, 0.35 percent for retail trade, 0.25 percent for wholesale, 0.15 percent for agriculture, forestry and fishing, and 0.48 percent for all other industries.

The new tax would come in tandem with a reduction in the personal income tax to account for any nominal price increases resulting from the commercial activity tax, Hass said.

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Beaverton Democrat, Speaker of House propose 'breakthrough' plan for revenue reform - Pamplin Media Group

Rich Leopold(Photo: Special to The Des Moines Register)

Rich Leopold, who was the first Democrat to officially announce a campaign for Iowa's 2018 race for governor, said Wednesday he is pulling out of the race.

Leopold issued a statement announcing his campaign was "suspending operations" in a bid for the Democratic nomination. He is Polk County's conservation director andserved under former Gov. Chet Culver as director of the Iowa Department of Natural Resources.

"This is a tough decision, and I am moved and indebted to all those who have supported this effort along the way, Leopold said.

Related: An early peek at 8 Iowa Democrats lining up to run for governor

Leopold cited many reasons for hisdecision, including fundraising challenges and difficulty in competing in a large field ofmostly political insiders.

"I have heard from so many people across Iowa, that if a person like me, an outsider, could get elected, it would restore their faith in state government. Truth is, the reality of an outsider mounting a winning campaign in Iowa is slim," he said.

Leopold told The Des Moines Register in an interviewhe has closed down his campaign operations and laid off his staff. He also doesn't plan to attend any more campaign events. But hewill retain his campaign's web siteas a forum to promote importantissues such as water quality, renewable energy and agriculture policy.

"For all practical purposes, we have shut down the campaign," Leopold said.

At least eight other Democrats are still running for governor or are exploring their candidacy. Republican Gov. Kim Reynolds is widely expected to seek election, and Cedar Rapids Mayor Ron Corbett is considering a bid for the GOP nomination. In addition, Brent Roske, a filmmaker, is running as an independent.

Leopold said he is encouraging both voters and candidates supportelection reform in an effort to level the playing field for candidates who can deliver "on the needs of the people."

"I am not done working for this state that I love," Leopold said. "Iwill continue to work for cleaner water, equal and fair treatment of all people, resilience to climate change, strong and sustainable rural economies, and compassion in our mental and physical health systems."

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New York Times

Two Paths Arise for Democrats in Race for Virginia's Governor New York Times At a Loudoun County Democrats meeting last week in this booming Washington exurb, it was easy to see why leading liberals such as Senators Bernie Sanders and Elizabeth Warren have endorsed the upstart candidate. Yet while Mr. Perriello's call to arms ... A Virginia Democrat called Trump a 'narcissistic maniac.' And he's not the liberal in the race!CNN Democratic gubernatorial candidate touts progressive support in VirginiaThe Hill Make ChangeYouTube all 58 news articles »

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Two Paths Arise for Democrats in Race for Virginia's Governor - New York Times

Democratic Representative Al Green of Texas is expected to submit articles of impeachment against President Donald Trump Wednesday in the first legislative step for any congressional bid to force a sitting president from office.

Related: Michael Moore launches TrumpiLeaks website for whistleblowers

Obstruction of justice by the president is the problem, Greensaid Tuesday. Impeachment by Congress is the solution.

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Green first officially called for Trumps impeachment during a fiery speech on the House floor last month. He contends that the president deserves to be removed for allegedly engaging in obstruction of justice by firing former FBI Director James Comey during the agencys investigation into Russias possible meddling in the 2016 election. Hisappeal came amidrevelations of aComey memo that claimedTrump had asked him to drop an investigation into former National Security Adviser Michael Flynn.

President Donald Trump sits during a meeting with Republican congressional leadership at the White House on June 6. Texas Democratic Representative Al Greens official call for Trumps impeachment is set for Wednesday. Joshua Roberts/Reuters

This is not about the president and firing someone else. Its about him firing the FBI director, Green told NBC News after his speech. Since that congressional address, Green has said he has received racially charged death threats.

His official announcement is set to come a day before Comey himself will testify in front of the Senate Intelligence Committee on the Russia investigation and his interactions with Trump over the last few months. Deputy Attorney General Rod Rosenstein appeared Wednesday before the same panel.

A handful of other rank-and-file Democratic lawmakers have floated the idea of impeaching Trump. But top Democratic leaders have urged their party members to refrain fromdiscussing impeachment until they see if ongoing investigationsuncover more details about the actions of the presidents team.

Meanwhile, Republicans have mostly rallied behind the president, despite tumultuous weeks for the White House, even as Trump faces accusations, among others, that he shared sensitive national security information with Russian officials and that his administration hired Flynn despite knowing he was under investigation.

For Congress to remove a sitting president from office, a majority of members of the Housewhich is now controlled by Republicansmust vote for the charges of misconduct. Then, the Senate, which the GOP also controls, has the power to try impeachment cases like a court. Two-thirds of senators must vote for conviction. Two U.S. presidents have been impeached by the House: Andrew Johnson in 1868 and Bill Clinton in 1998. Both were later acquitted at trials held by the Senate.

Greens call for impeachment comes as support to remove Trump from office is higher than his approval rating. A Politico/Morning Consult poll published this week found that nearly 43 percent of American voters support the idea of beginning the official impeachment process for Trump. Meanwhile, his approval rating dipped about six percentage points to just 36 percent over the weekend, according to a Gallup poll.

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Trump Impeachment Process Set to Begin As Democrat Al Green Files Articles - Newsweek

Obstruction of justice by the president is the problem, Rep. Al Green (D-Texas) said in a statement. | Getty

Rep. Al Green is drafting articles of impeachment against President Donald Trump, saying the president should be forced from office for firing FBI Director James Comey in the middle of the bureaus ongoing Russia investigation.

The articles of impeachment, which Green will officially announce Wednesday, follow increasing calls from some rank-and-file Democrats for Trump to be booted from office.

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Obstruction of justice by the president is the problem, Green (D-Texas) said in a statement announcing his plan late Tuesday. Impeachment by Congress is the solution.

Comey will testify before the Senate Intelligence Committee on Thursday. The former FBI chief is expected to recount his interactions with Trump over the last several months, including an alleged request by the president that Comey end an investigation into Michael Flynn, Trump's former national security adviser.

While Green's push is sure to fire up the partys progressive base, which has been demanding lawmakers take a more aggressive approach to Trump, Democratic leaders have been and remain cool to the idea.

The bar to remove a president from office is understandably high, and Democratic leaders argue theres no evidence Trump has committed the high crimes that warrant such a move. And the push to impeach Trump certainly wont receive any love from Republicans, who would be necessary to make such action a reality.

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But the tepid response from Democratic leaders hasnt stopped more than a dozen Democrats from calling from Trumps impeachment in recent weeks, particularly after Comey was abruptly dismissed.

This is obstruction of justice. This will continue to be obstruction of justice regardless of testimony given by Mr. James Comey, Green said. The question that only Congress can answer is whether the president can obstruct justice with impunity.

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Texas Democrat intensifies Trump impeachment push - Politico