We’ve already said we think Measure 118 is a hot mess. Here’s what we put in the Voter’s Pamphlet on Measure 118

Tax Fairness Oregon Opposes Measure 118

Tax Fairness Oregon is a network of volunteers who advocate for a fair, equitable, and efficient tax code.

We fight against tax breaks for large corporations and wealthy individuals and for a more progressive tax system.

We’ve carefully studied Measure 118, and we find this measure flawed.

Measure 118 is simple in concept and appeals to a principle that TFO supports: increase taxes on large businesses that have learned how to avoid taxes. However, without substantial legislative changes it would reduce funds available for schools, mental health, public safety, and critical state priorities.

Measure 118 will have long term impacts on our economy and state budgets with unintended consequences.

* The distribution of funds to all Oregonians, regardless of income, is wasteful resulting in fewer state resources for those who need them most.

* It will require hundreds of new state employees to manage the program.

* The tax is 700% larger than our Corporate Activities Tax. No other state has a gross receipts tax nearly this high.

* The business tax burden would be unevenly distributed between individual businesses and industries. Industries with small profit margins could pay most of their profits in this tax unless they are able to increase prices.

* There are no exclusions for groceries, medicine or housing.

* The size of the tax increase will make it difficult to find additional future revenue sources for schools, universities, mental health and housing.

* It is a risky, untested, social experiment.

* We should instead, expand existing, proven programs helping low-income Oregonians like our Child Tax Credit and Earned Income Tax Credit.

It sounds good, but it will hurt you in ways you cannot see
Measure 118 is inequitable and wasteful

Vote No on Measure 118

To see many other arguments on M 118, go to the online Voter’s Pamphlet

In the last two weeks the Marion County Dems voted 27 to 3 to oppose M 118  and the Washington County Dems voted 45-3 to oppose.  Meanwhile both Multnomah County Dems and the state party decided to take no position and the Benton County Dems voted to support M 118. If your local county party hasn’t taken a position, give a call so we can help educate.

A week ago the House and Senate revenue committees each heard an update on M 118  from Legislative Revenue Officer, Chris Allanach. LRO’s new Measure 118 report is 24 pages long.  But you’ll probably find the PowerPoint Allanach used in his presentation a far easier bite. One chart (page 9) shows how passage of M 118 would affect a set of c and s-corporation businesses.  For example, it shows that a corporation with $90 million in Oregon sales currently pays $446,000 in Oregon corporate income tax.  Under the measure, the General Fund won’t get that money, because the corporation would be paying the new Oregon Rebate Minimum Tax and while they will be paying more than four times more, what they pay will be going to rebates, leaving the General Fund with $446,000 less for schools, housing, drug treatment, roads, etc.

If you listen to Allanach’s presentation to the Senate committee, you’ll also catch some very strong comments from Senators Boquist, Golden and Chair Meek.  (This part of the meeting begins at 1 hour 47 minutes.)

This is the first press response we saw to the hearings.  It’s from the new online newsource, Capital Chronicle, one of our favorite newer sources of statewide news.  We do think the reporter mis-understands the source of most of the over $1 billion in annual lost resources for the General Fund, that’s why we gave the example above.  Most of the loss of General Fund dollars is from so many fewer corporations paying the corporate income tax since they will pay instead the higher new corporate minimum tax which will go to rebates.  (See slide 9 of the PowerPoint.)