An Oregon legislative committee advanced a Democratic plan to raise more tax revenue from corporations and wealthy individuals.
The House Revenue committee passed the plan on Wednesday, sending it to the House floor.
The plan proposes raising $275 million in additional revenue to balance the state budget.
Democrats say the tax increases are necessary to boost funding for schools. Republicans say the Legislature wouldn't have to raise taxes if it would cut deeper into public-employee pensions.
The plan would eliminate the personal exemption tax credit and phase out income tax deductions for Oregon's highest-earning taxpayers. Responding to concerns from Republicans and charitable organizations, Democrats agreed to continue allowing tax exemptions for charitable contributions without limits.
It would also raise taxes on some corporations.