Oregonians will soon vote in favor of a corporate tax increase that would provide universal basic income. Companies are spending millions of dollars to oppose a 3% tax on corporate sales over $25 million. Both Democrats and Republicans say the measure could harm state budgets and essential services.
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Oregon businesses are spending millions to oppose a ballot measure that would tax corporations and give residents $1,600 a year in a rebate program similar to universal basic income.
And both Democratic and Republican lawmakers seem to agree. They say the ballot measure is riddled with problems and could bloat the state budget.
However, whether the state adopts Oregon Act 118 will ultimately be up to voters.
The measure, also known as the Oregon Rebate, would increase the state’s minimum corporate tax rate by 3% if a company generates $25 million in revenue in the state. The money would then be distributed to all Oregonians who have lived in Oregon for at least 200 days, including minors and dependents.
The rebate “levels the playing field” for Oregonians, more than 170,000 of whom have signed a petition to put the measure on the November ballot, according to the Oregon Rebate website.
California donors are the largest source of funding for the Oregon Rebate PAC, and the state has raised hundreds of thousands of dollars to support Measure 118, according to state filings. As for the opponents, Oregon businesses collectively raised $9.3 million to fight back.
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Unprecedented bipartisan opposition
Democratic Gov. Tina Kotek told Willamette Week in July that the ballot measure “may look good on paper, but a flawed approach would leave a gaping hole in the state’s budget and reduce the need for low-wage workers.” “This will put essential services for people’s households at risk.”
A united front of state Democrats, who are more likely than their conservative counterparts to support basic income programs that are popular across the country, is also fighting the ballot measure. The state’s Senate Democratic Leadership Fund said in an August statement that it was concerned that job growth could be hampered and “cause cuts to critical services such as road maintenance, firefighting, and addiction recovery.” Ta.
The state Republican Party criticized the measure in a press release Saturday, calling it “misleading, misguided and harmful to Oregonians and Oregon’s small businesses.”
“If Measure 118 passes, each taxpayer will receive a $1,600 ‘refund’ that will be used to buy groceries, medicine, utilities, gas, clothing, and other items that Oregonians already have a hard time affording.” It will be dwarfed by the need to pay even higher prices for almost everything it does,” the party said. Said. He added that the kickbacks could drive businesses out of Oregon.
The nonpartisan Oregon Department of Legislative Revenue released a report this month saying low-income rebate recipients could be disqualified from receiving aid from federal programs such as Temporary Assistance to Needy Families and Medicaid. did.
“If nothing changes and Bill 118 becomes law, it will just create a $1.3 billion hole in the general fund,” state Legislative Revenue Officer Chris Arranac told The Oregonian. “Congress can change that, but that has its own problems.”
Despite months of opposition from politicians and business leaders, ballot measure petitioner Antonio Gisbert has maintained that the rebates would be purely neutral.
“In short, General Fund funds are not rebate funds and all implementation and related costs are paid for with new revenue. Poverty reduction reduces demand for services, increased economic stimulus boosts the state’s economy, and tax revenue ‘and general fund resources,’ Gisbert told Business Insider via email in August. It did not immediately respond to a request for additional comment.
The fight over UBI
Universal basic income programs provide regular and unconditional payments to people, regardless of their economic status. Bill 118 would make Oregon the second U.S. state to implement some form of universal basic income statewide, after Alaska. The Alaska Permanent Fund distributes funds annually to all Alaskans.
While proponents of these programs argue that they can help poor residents pay for basic necessities and stimulate the economy, opponents (most commonly conservative lawmakers) argue that these programs amount to “socialism.” ” and offer benefits-free payments.
In previous comments to Business Insider, Gisbert said he remains optimistic that voters will support the measure in the general election.
“I feel like some of our elected (officials) are more concerned with corporate and corporate interests than the interests of ordinary Oregonians,” Gisbert said. “We are very committed to establishing some level of corporate tax justice.”
Gov. Tina Kotek did not immediately respond to a request for comment from Business Insider.
