Democratic leaders in the Oregon House and Senate have come out swinging against a November ballot measure that would hike taxes on corporations to send checks to every Oregonian.
Top Democrats in the House and Senate joined their Republican colleagues and Gov. Tina Kotek in opposing Measure 118, also referred to as the Oregon Rebate. The ballot measure, one of five statewide questions that will appear on the November ballot, would increase by 3 percent the corporate minimum tax on sales above $25 million and distribute proceeds to all Oregonians.
A recent legislative fiscal analysis estimated that the higher taxes would lead to a roughly $1,600 annual payout for all eligible Oregonians, from people scrounging up bottles and cans to earn 10 cents at a time to Oregon’s richest man, Nike cofounder Phil Knight.
It would result in about $7 billion more in tax revenue each year, though fiscal analysts say the state would end up with less money to spend on basic government services – about $400 million less in the 2025-27 budget cycle. And they predicted costs for goods would increase more with the new tax and rebate then they would without.
That analysis prompted House Speaker Julie Fahey, D-Eugene; House Majority Leader Ben Bowman, D-Tigard; Senate President Rob Wagner, D-Lake Oswego, and Senate Majority Leader Kathleen Taylor, D-Portland, to slam the proposed tax in a joint statement Tuesday.
“As a matter of public policy, we believe this is a bad deal for Oregonians,” they said. “We ask Oregonians to take a closer look at Measure 118, and we ask you to join us in voting no.”
They said the initiative, funded by a California venture capitalist, has “concerning, potentially dire implications” for crucial government services including health care, roads and public safety.
Kotek, also a Democrat, told Portland’s Willamette Week in late July that she opposed the measure.
“It may look good on paper, but its flawed approach would punch a huge hole in the state budget and put essential services for low-wage and working families at risk,” she said. And legislative Republicans oppose it. Senate Minority Leader Daniel Bonham, R-The Dalles, called it “another out-of-state and dangerous experiment that doesn’t align with the needs of Oregonians.”
“It threatens our economic stability by driving up costs for businesses and consumers, leading to widespread job losses and higher prices for goods and services,” Bonham said. “This measure will result in severe cuts to essential public services, including education, public safety, and infrastructure. We cannot afford to gamble with Oregon’s future on unproven and risky policies.”
Oregon Business and Industry, the state’s leading business lobby organization, is leading opposition to the measure and has put more than $500,000 into a political action committee to oppose it, state campaign finance data show. Supporters led by Josh Jones, a California venture capitalist and outspoken proponent of universal basic income, raised nearly $900,000 to put the measure on the ballot.
