$9.3 Million Raised to Fight New Corporate Tax that Could Boost the Income of Every Oregonian by $1,600 a Year

Oregon Could Introduce Largest Universal Basic Income in the U.S.A.

If voters decide to approve Measure 118, they will pave the way for the largest universal basic income program in the country, funded by corporations with total sales in Oregon exceeding $25 million. The money derived from this taxation will be distributed equally among residents of all incomes and ages and will become effective by 2025.

Oregon residents will vote this fall on the new corporate tax that proponents say will alleviate poverty and stimulate the local economy. The Legislative Revenue Office estimates that $1.3 billion will be generated by the end of the biennium next June, with significantly higher amounts in future years.

The windfall will be distributed among Oregonians in the form of direct cash payments or refundable tax credits.

If the new corporate tax is approved, Oregon will become the second state to offer residents a basic income. Alaska has been distributing a part of the income from all mining revenues to its residents annually. Each resident received $1,312 last year.

Opposition to Measure 118 is Vociferous

However, opposition to the new corporate tax proposal is vociferous.

Among those adding their voices to the opposition are Governor Tina Kotek, Democrat and Republican lawmakers, dozens of businesses, and many nonpartisan research groups. They argue that the tax could stop businesses from operating in Oregon, siphon funds away from needed state services, and ultimately lead to higher prices.

Dozens of business groups say the tax will harm consumers because it will force price increases. They are also opposed to the proposal that businesses will be taxed on gross sales and not on net profit, unfairly targeting companies with small profit margins such as construction companies and grocery stores.

Oregon building trade union leader Willy Myers says the tax could incentivize larger corporations to leave Oregon, taking jobs with them and creating an affordability downward spiral.

Although the tax measure only applies to gross sales exceeding $25 million, smaller businesses are concerned that they too could be impacted… ‘we cannot afford to lose high income earners that spend their money in small businesses,’ says Sarah Shaoul, the founder of a Portland advocacy group for independent retailers, Bricks Need Mortar.

The CEO of Oregon Business and Industry, the state business lobby spearheading the anti-tax measure campaign, Angela Wilhelms says the tax will stagnate wage increases and available jobs, both are unlikely components ‘of a recipe to lift people into prosperity.’

Families Could Become Ineligible for Federal Benefits

According to a state report, Measure 118 could make families receiving the tax windfall ineligible for federal benefits such as food stamps.

However, while Measure 118 antagonists refer to the state report saying the tax will hamper economic growth in Oregon over the next decade, proponents point to the fact that the state report says its estimates have been made with ‘considerable uncertainty.’

Proponents Say Tax Could Alleviate Poverty

Supporters of the next tax point out that the extra income to Oregonians will help alleviate poverty and stimulate the local economy. The tax measure will also ensure that larger corporations pay their fair share of the tax burden.

The measure will help families ‘to thrive and not just survive’ says Stacey Rutland, a resident of Portland who works as an adviser to the pro-Measure 118 campaign.

Funding the promotion of the next tax measure is Oregon Rebate PAC, which has only managed to obtain eight endorsements on its website, none of which are elected officials. Proponents have managed to raise $171,000 since the corporate tax measure qualified for the ballot.

Measure 118