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jordanlund

Measure 118 promises Oregonians more money, but it could come at a cost (www.opb.org)

submitted 2 months ago by jordanlund to c/portland_oregon

6 comments fedilink hide all child comments

Been seeing a lot of anti-118 ads lately, specifically talking about the harms to "small business" so I had to look it up myself:

FTA above:

"Measure 118 would slap a 3% tax on a business’s Oregon sales above $25 million, then divvy up the money raised among Oregon’s more than 4 million residents, no matter their age.

An analysis by state revenue officials suggests the policy would reap more than $6.5 billion a year, even though it raises taxes on fewer than 2% of businesses. The measure could then send around $1,600 a year to every Oregonian beginning in 2026 — either via tax credits or direct payments."

So, first, if your business generates more than $25 million in sales ($68,493.15 every day!) - you are NOT a "small business".

2nd, we definitely need reform on business taxes to make sure businesses are paying their fair share.

3rd, I'm not so sure $1,600 direct payments to Oregonians is the best use of those tax dollars. It should be used to reduce our overall tax burden. Maybe increase the standard deduction by $1,600 or some such.

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[–] [email protected] 4 points 2 months ago

And that cost? Money.

[–] yogi_pogi 4 points 2 months ago* (last edited 2 months ago)

I worked at a few local boutique stores supplying them with IT work. Boutique like they sell art, hand crafted stuff, book stores, local hardware shop, etc.

None of them are breaking past $25 million in revenue.

Many are happy to hit $2-3 million, which gives them enough to pay their staff of 5-10 ppl.

[–] aaaa 3 points 2 months ago (1 children)

3rd, I'm not so sure $1,600 direct payments to Oregonians is the best use of those tax dollars. It should be used to reduce our overall tax burden. Maybe increase the standard deduction by $1,600 or some such.

What a weird point. So instead of giving $1600 cash to people (and more to families) this author proposes tax breaks that will be less accessible to people?

I got a mailer this week calling 118 a "blank check for Salem"

That doesn't even make sense

[–] jordanlund 2 points 2 months ago

The "blank check for Salem" as noted in the article, is that the State Government can alter the bill once it passes. So that $1,600 a year might be $300 a year, might be $0 a year, nobody knows.

[–] [email protected] 2 points 2 months ago* (last edited 2 months ago) (1 children)

even though it raises taxes on fewer than 2% of businesses

Bad metric. What percentage of sales by dollar amount does it impact? That will provide a much more accurate indication of the real consumer cost impact. If those 2% of businesses by count do 50% of sales volume by $ in the state, that's a problem (in multiple ways tbh)

[–] almar_quigley 6 points 2 months ago

That just makes me feel like it would help promote small businesses and shopping local. So not a bad thing either.