A serious lie is being told about Measure 97 that anyone with basic logic must scratch their head over. The purpose of Measure 97 is to remove the cap on the corporate gross sales tax for sales greater than $25 million. One argument used in opposition to the measure is that higher tax costs will be passed along to the consumer. But aren’t state and local taxes deductible from federal income taxes?
In short, a corporation affected by Measure 97 will actually be reducing its federal tax liability with an increase in Oregon taxes. Yes, overall they will pay more taxes regardless of whether it goes to the state or the federal government, but right now these $25 million gross sales accounts are being taxed with the “minimum tax.”
One study shows that of the companies “that make over $100 million in Oregon sales a year, about half pay minimum taxes (0.02 percent)
It is an old question: where do you get your tax revenues? Large corporations in Oregon suggest if the state needs more revenue, tax the consumer (sales tax) and leave our profits alone. There are approximately 960 corporations out of 400,000 that will be affected by Measure 97. Multi-billion dollar corporations (examples Walmart, Chevron, Wells Fargo) are paying for the “No” on Measure 97 campaign, not the small businesses that won’t be affected.
Keep in mind the stipulation that revenue from Measure 97 is to be used to provide additional funding for education, health care and services for senior citizens.