Bay Area Chamber of Commerce in Coos Bay is leading a local effort against Measure 118 ahead of the Nov. 5 election.
The Corporate Tax Revenue Rebate for Residents Initiative would increase the corporate minimum tax on sales exceeding $25 million by 3%, removing the minimum tax cap and distributing increased revenue to Oregon residents who spend more than 200 days in the state.
“The Chamber does not like Measure 118. It’s going to be bad for business is Oregon,” Chamber Executive Director Rosey Thomas told The World. “Oregon is already lower on the list of places that are friendly to do business because we have a lot of tax already built into our businesses, and they want to add taxes upon taxes for this new $6.8 billion they’re trying to get out of Oregon.”
According to advocates, with the tax every Oregonian will receive a rebate of “about $1,600,” including minors and dependents, which will have “a profound impact on all Oregon families and the state’s economy,” per www.yesonmeasure118.com.
The pro-measure site claims the rebates “are paid for by giant corporations like Comcast” and boasts, “Collectively, we are all going to be over $6 billion richer every year, and as we shop local our local businesses will similarly thrive.”
Opponents of the measure argue it would place “a massive tax on sales” alone, and not on profits or income, per noonmeasure118.com.
“They don’t care if the businesses have profit or not,” said Thomas. “They’re going to pass all those costs down to the consumers and there’s no limitations on the products they will tax. It will be medicine, food, all the necessities, all the way down the line.”
This could benefit Oregon’s out-of-state competitors, said Thomas, as the tax will increase the costs of Oregon products.
“When a business tries to manufacture something here and they add that 3% tax, and he sends his product to the next chain, it’s going to have another 3% tax, all the way to 12% by the time it hits consumers, or even 15%,” she said. “They’re going to pass those costs on to Oregonians.”
The rebate will not be enough to cover this increases in costs, argued Thomas.
“We do a lot of manufacturing still, and the costs they’re going to pass on to the consumers at every level, and on every product, no limitations, it’s just not a good way,” she said. “We’ll be so low on the totem pole of friendly places to do business or buy products.”
Measure 118 is not a constitutional amendment, noted Thomas.
“Under the state law, the Legislature could amend it and use the money for any other purposes they wish,” she said. “Without any further vote from the people or accountability, they can change it and take the money and run. So, Oregon might not even benefit from it, but we’re all going to pay from it.”