Have you signed the petition to raise the Oregon income taxes of big corporations doing lots of business here? It’s Initiative Proposal 28 (known as IP 28). If you haven’t signed yet, please join us in doing so now. We want this on the ballot in November!
A number of different research groups rate states for their business taxes. Oregon ends up the cheapest or near cheapest state to do business in when they look at the combined taxes and fees businesses pay:
Oregon’s Business Taxes are Low, Low, Low
IP 28 addresses one part of Oregon’s outmoded and unfair level of business taxation. It will raise significant revenue, not from all businesses, and only business income taxes, but with an increase that makes sense if we want to have decent schools and adequate money for health and human services.And IP 28 does not put the change in the Constitution, so the Legislature will be able to make bi-partisan changes.
The initiative will raise income taxes on c-corporations that have more than $25 million in sales to Oregon customers. Currently if you’re such a business (think of banks, retailers, communications companies, airlines and fast food chains), if you juggle your books just right, you can get away with paying very, very little in Oregon income taxes. Clearly, many companies do. Their Oregon taxes on $49 million in sales can be as low as $30,000. Under the new law, which raises the minimum tax only on their sales above $25 million, raises their taxes to $630,000, or 1.3%. On $500 million in sales, their rate, at 2.4%, will be approaching the maximum 2.5% you will hear about. But your rate, because you are not advantaged like corporations—it’s likely closer to 7.1%.
After deductions, average Oregon families pay taxes at 7.1% on every dollar earned. Since corporations enjoy the same state benefits as we do, it’s hard to see why they should complain about paying a tax rate so far below ours.
We want to be proud of our state again. We want foster kids to be protected, health care to be affordable, fourth graders to have a full school year in a decent-size class, college tuition to be reduced…. Are you ready to sign? There are two ways:
Download, sign and mail in a single page signature sheet or Start collecting signatures, from yourself, your family and friends with a signature sheet.
If you have any questions for us before you sign, please email us or visit the Better Oregon website.