This is the main Oregon issue I want to talk
about. I certainly find Measure 98 interesting, and the candidate races, but I
don't have my ballot and pamphlet yet, and I don't generally feel a need to
make recommendations on every race.
Measure 97 is different for me because it touches on
a very important issue, and the ads against it are giving me a lot of thoughts
and feelings.
Here is the summary of Measure 97:
"Current law requires each corporation or
affiliated group of corporations filing a federal tax return to pay annual
minimum tax; amount of tax is determined by tax bracket corresponding to amount
of corporation’s Oregon sales; corporations with sales of $100 million or more pay $100,000.
Measure increases annual minimum tax on corporations with Oregon sales of more than
$25 million; imposes minimum tax of $30,001 plus 2.5% of amount of sales above
$25 million; eliminates tax cap; benefit companies (business entities that
create public benefit) taxed under current law. Applies to tax years beginning
on/after January 1,
2017. Revenue from tax increase goes to
public education (early childhood through grade 12); health care; services for
senior citizens."
Well of course Gina supports that; she is a tax and
spend liberal! Okay, but there's more to it than that.
I find it interesting how the opposition ads
capitalize on Oregon's tax history. Oregon's budget has been having trouble since Don McIntire's Measure 5 from
1990, and school funding has been a pretty constant source of concern since
then. While the imbalance seems to relate more to businesses not paying a
reasonable share (which is not only a measure 5 issue), a more common proposal
to address the insufficiency has been sales tax. Oregonians hate the idea of a
sales tax.
I hate the idea of a sales tax too. The mere hassle
of having to do the mental calculations in your head while at the store to
figure out what you will really be paying was my first reason. That comes from
being a child on vacation in other states. I might have had a dollar or two to
spend, so a few cents could make a big difference.
That is probably less of a concern as an adult, but
now I have a greater awareness of how regressive a sales tax is, affecting most
the people who can spare the least. Yes, you can write it so that the barest
necessities are tax-exempt, but the more items you exempt the less effective
the source of revenue. In addition, there is a tendency to over-scrutinize the
purchases of poor people already; I don't want to be having that discussion
where we decide that they can have unprepared foods but should never be able to
get something from the deli.
Regardless, I totally get the genius of opponents
calling this a sales tax. "It's on sales! Not on profits!" Yes, that
should make it hated. It also misses the point.
The reason such wording is necessary is because some
businesses are brilliant at spending their money as soon as they make it, thus
never having a profit. (You may notice that as a non-corporate entity, spending
your money does not make it tax-exempt.)
Hollywood is notorious for this. There have been lawsuits about people who were
promised a share of the profits, but never got any because a very successful
film never produced any profits. (This is why smart agents negotiate takes of the
total box office.) Similarly, there are businesses that spend money on luxury
penthouses for their executives and private jets and sky boxes, and they become
business expenses.
It is smart to focus on the impact on family farms,
because Oregonians love family farms. I do question how many family farms have
over $25 million in annual sales, though, because everything I have seen on
farming makes that number seem high. Hospitals might, but part of the increase
is going to health care so it could even out.
Here's the thing, if your company is making $25
million in sales, but it is all taken up by operating expenses so you cannot
afford the $30,000 plus 2.5%, maybe you should raise prices. That can probably
be done reasonably. If you are manipulating budgets because your greed is more
important than children, seniors, and health, my sympathy is all drained away.
I can respect differences of opinion. I can respect
them in general, and on specific ways of resolving various issues. I don't
approve of trying to weasel out of paying taxes, but I can understand the
motivation.
However, when you use deception to
convince people to go against their best interests to serve your own,
apparently with the assumption that they are stupid, I really hate that. I've
got my eyes on you.
Vote yes on 97.
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