NO on Measure 67

I’m submitting this statement as a registered Democrat.

The Oregon state legislature passed a permanent increase to the business tax in June. The increase, both unfair and unsound, has exposed some of our elected officials’ lack of forethought. Instead of adopting a reasonable tax policy that satisfies the state’s financial needs, the democrat-led legislature has effectively said ‘git-er-dun’ by rashly approving an increase with grim long-term implications.

Citizens upset with the short-sightedness of the legislature’s decision gathered enough signatures to refer it to voters. Ballots should arrive in your mailbox in January – please join me in voting NO on Measure 67.

Again, I’m a registered Democrat. I concede that Oregon’s corporate minimum tax (which is comparatively lower than many other states and hasn’t been raised since 1931) should be raised. Businesses and individuals should pay their fair share; I abide that. What I can’t abide is the amount of the increase and the effects that this sudden and substantial change would have on the businesses that employ Oregonians.

The increase would make Oregon’s corporate minimum 20 times higher than New York’s – the nation’s highest. While the resulting money would help to fill a budget gap and pay for some human services, it would unduly hobble many of the businesses, large and small, that operate in our state.

Up to $100,000 a year, the tax would be based on the gross receipts of businesses, regardless of their profits or lack thereof. This means that a business, whether or not it makes enough money to cover its expenses (operating costs, wages and benefits for employees, etc.) would be required to pay the increased minimum tax. If the business doesn’t turn enough of a profit to cover its costs, cuts (read: jobs or health care benefits) would have to be made.

What’s worse, the higher taxes would be retroactive to January 1, 2009. No money to cover the increase has been withheld from Oregonians’ paychecks in all of 2009; businesses didn’t include the unexpected expense in last year’s budget. If anything, they invested any extra money in growth (read: job creation). Should the Measure pass, businesses would be forced to pay out of pocket. The result? Cuts (read: jobs or health care benefits) would have to be made.

The state of Oregon has been profoundly affected by the recession. Unemployment is at 12% here and 9% nationwide. People are hurting, many are struggling. Everyone agrees that the state could really use the $733 million gained from the tax increases in Measure 67. But when it stands to cost many Oregonians their jobs (while state employees stand to get $258 million in salary increases), economic growth is inhibited. Even President Obama said “the last thing we want to do is raise taxes during the middle of a recession.”

For the sake of our state and the citizens that work to keep its economy afloat, please vote NO on Measure 67. Let’s send our elected lawmakers back to the table, to get it right, so the corporate minimum can be raised fairly and sensibly.

More info: http://www.stopjobkillingtaxes.com/