Oregon
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Created on July 7th, 2023
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Won't the corporations just raise their prices to make up for the tax? Not trying to be a party pooper, but these businesses have entire offices full of people whose job it is to ensure they continuously turn a profit. Every action taken by state and local government is immediately reacted to by the corporate world, and then the state is by its nature slow to respond to the new input.
It's almost like we have let capitalism go wildly out of control.
Even if they do, which they probably will, it still works out as a net positive progressive policy. You can view it like an added 3% sales tax for everyone, including corporations and out-of-state tourists. Everyone gets the exact same rebate on this sales tax at the end of the year - so those who spend the least, the poorest, benefit the most because they paid the least of that tax. Anyone who spends less than the state average (which should be the vast majority of regular people) should see a net benefit. And for those spending above average it'll just be a 3% tax on everything they spend above that statewide average. Kinda just straight-up small scale wealth redistribution.
Plus a lot of smaller companies and stores never reach the 25 million so not need to pay the tax and raise their prices. Meaning mom and pop shops will get a small edge over large corporate outlets.
This would be an outstanding outcome. It's about time someone working towards the American dream gets a break.
The question is probably if it is enough to compete, but it's something.
That's a very good point I didn't rhink about.
As far as I know, corporations are generally unable to raise prices enough to make the price difference terrible for the consumer. E.g. invisible prices (taxes) are more effective on a company because companies can’t change their visible prices by much.