Oregonians Must Decide Yes or No on Measure 118 That Will Redistribute Corporate Tax on Sales Above $25 Million
Oregonians must vote for Measure 118 on November 5 to increase the minimum corporate tax on sales exceeding $25 million by 3% and redistribute the cash in the form of tax rebates to residents who spend at least 200 days in the state annually.
Big Corporations Like Nike and Intel Are Opposed
Opposed to the measure are big corporations like Nike and Intel which will see their sales above $25 million channeled into public coffers.
Also opposed to the measure is Oregon Governor Tina Kotek who says the measure’s ‘flawed approach’ will punch large holes in the state budget and place essential services for low-wage earners and working families at risk.’
See also: “Oregon Rebate” Measure 118 Could Turn Out To Be A Financial Burden
Echoing her sentiments is Jared Walczak, vice president of State Projects and the Tax Foundation. Walczak says the measure could raise the cost of goods, drive jobs and economic activity out of state, and put state-based businesses at a ‘massive disadvantage with their out-of-state competitors,’ making it ‘an awful deal for Oregonians.’
At present, Oregon-based corporations are required to pay either the corporate income tax or the minimum tax, depending on which amount is greater.
Measure 118 proposes raising the minimum tax for corporations with sales in Oregon by adding a 3% tax on sales exceeding $25 million, in addition to the existing minimum tax mandated by law.
The measure would allow the Department of Revenue to allocate the extra revenue from the corporate sales tax equally among eligible residents.
Protagonists for Measure 118 include the Oregon Progressive Party, Oregon Working Families Party, Pacific Green Party, and Progressive Democrats of America.
The chief petitioner for the initiative is Antonio Gisbert, who says Measure 118 will drastically reduce child poverty in the state by 26%.
He points out that a $3,000 contribution to a family of four could be life-changing and questions the existence of poverty ‘when we have so much wealth around us.’
See also: New Corporate Tax Could Boost the Income of Every Oregonian by $1,600 a Year
Oregon would become the second state behind Alaska to direct cash transfer payments to residents funded by taxation.
Residents’ Social Media Debate is Mostly Negative
The consensus on the Ashland Community page on Facebook is a no vote for Measure 118.
Ginny Lee describes Measure 118 as a ‘job killer,’ and asks why big corporations would want to stay in Oregon if forced to pay 3% tax on sales above $25 Million.
Darin Rutledge points out that the Governor and ‘all of Oregon’s legislative leadership’ are opposed to the measure…’because this is a horrible idea for all Oregonians.’
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It’s important to realize that this is a tax on the corporations SALES–not profits.
Many companies are much smaller than Nike or Intel but still have sales of $25 million.
You could very likely see that $1,600 zeroed out over the course of a year in the higher prices you will pay for groceries, auto parts, fast food, light bulbs, bug spray, clothing, school supplies, crafting materials, gardening supplies, gas, home improvement items–ordinary, everyday things that you wouldn’t think about but are provided by companies that are easily generating $25 million in sales each year.
It’s an idea that seems so harmless–and so wonderful–but will ultimately lead to serious problems.
It’s an adage that has been around since the beginning of time: If it sounds too good to be true …