Measures 66 & 67 in Oregon

Since I have quite a bit to say about these measures, and since Denvy had some of the same questions I had, I decided to just write up a little post about them. I am certainly not an expert, but I will do my best to pass on the information I have been given.

I was concerned about farmers as well. I have been hearing about how this could put them out of business. After getting the facts, I can only assume they are misinformed about the measure. First of all, only C corporations will pay taxes on their gross sales. Most small businesses fall into one of the five other categories of businesses such as sole proprietorships, limited liability corporations, or S corporations. Those five other types of businesses will be subject to the new $150 minimum tax, but will not have to pay anything on their gross sales.

C corporations are generally meant for businesses that plan to have many investors. Most C corporations are big businesses and some of them will have to pay the 1/10 of 1% tax on their gross sales. Yes, they will have to do this even if they don't have a profit. I was concerned about this until I figured out how much this was really going to be. Let's say a company has 5 million dollars in gross sales, but claims no profit. They would have to pay $4000 in taxes in Oregon. Well, that is about $333 a month. If a company has $5M in sales a year they are running about $416,600 through their coffers every month. A small amount like $333 is going to be chump change for them in the scheme of things. I seriously doubt it is going to break them. A bad shipment or a minor loss of any kind would set them back more than $333.

Oregon has one of the lowest corporate tax rates in the country. This is a tax on gross sales in Oregon so many businesses from out of state will actually be the ones paying this tax. If you own a C corp. business that sells mostly out of state, you won't have to pay this tax on your sales out of state. This tax will still leave Oregon as one of the lowest corporate tax states in the nation. It is definitely lower than either Washington or California, our closest neighbors. I don't think this tax is going to keep any corporations from locating in Oregon. Now, an unstable economy and a lack of social services to the community and their employees might keep them from locating here, but 1/10th of 1% in gross sales probably won't. Just sayin'.

The personal income tax just makes sense to me. If you make much more than the average citizen, you should pay your fair share. I like the Biblical saying, "To whom much is given, much shall be required." It just seems right. I pay a rather large portion in taxes, and I can afford it because I don't have any dependents. I don't like it, but I do feel that it is only fair.

I think it is really important to have social services and a stable environment for businesses to grow in. Business doesn't flourish in areas where people are worried about basic survival. I think we need to take care of each other, and sometimes this is done through government services and schools. AND, we need to find a stable way to keep our budget balanced so these services can continue. This way may not be perfect, but I think it's a good start.