Oregon is considering a significant change that could possibly put extra money into the pockets of its residents. In November, voters will have to decide on Ballot Measure 118, also known as “Oregon Rebate.” If this is passed, this measure would provide a universal stimulus check of $1,600 per year to every Oregonian by raising the corporate minimum tax on big businesses. This proposal has sparked intense controversy, particularly by Oregonians with those in support and opponents arguing over the impact this will have on the economy of Oregon and subsequently, its residents.
What Is Measure 118?
Measure 118 is a proposal that aims to generate extra revenue for the state by increasing the corporate minimum tax by 3% on large businesses that exceed $25 million in annual sales. According to the state revenue office, this change can possibly bring in an extra $7 billion a year. The measure’s proponents, Antonio Gisbert, argue that this money can be used to provide a $1,600 stimulus check, as annual rebate for every resident of Oregon. This will create a universal basic income for the residents of the state.
Gisbert believes that the measure will address an imbalance in the state’s tax system. “The minimum corporate tax rate after $25 million is less than 0.12%,” he said. “That is, to us, offensively low compared to what we pay in taxes between 4.75% and 9.9%.”
Supporters of measure 118: what they say
People in support of measure 118 argue that the proposed tax increase would help to address economic inequality by redistributing wealth from large firms to regular Oregonians. Gisbert suggests that an extra $1,600 stimulus check per year could help families in Oregon make ends meet and accelerate the local economies. “When we all have an extra 1,600 bucks or so, our Main Street economies are going to flourish,” Gisbert stated. “Our overall economy is going to flourish. We’re going to bring everybody up.”
Proponents believe that the increase in tax burden on major corporations is fair, considering that many of these large companies currently pay minimal taxes on their sales in Oregon. They argue that large corporations like Comcast, based outside of Oregon, will be taxed on their sales within the state, thus contributing to the local economy.
Opposition to measure 118: concerns and criticisms
Despite the potential benefits residents of Oregon stand to gain on the disbursement of the stimulus check, Measure 118 has faced significant opposition across the state from various groups, including major business organizations, legislative leaders, and even Oregon Governor Tina Kotek. Opponents, such as Angela Wilhelms, leader of the ‘No on 118’ campaign, argue that implementing the measure could have unintended consequences, such as increased costs for consumers and disruptions to the supply chain. “When you tax sales, consumers will face higher prices in a time when Oregonians are already paying around $11,000 more per year than three years ago,” Wilhelms explained.
Opponents also raise concerns about the measure lacking a guarantee. Wilhelms stated, “There’s no guarantee Oregonians will see this money. The way the measure was written, it means that the legislature can amend it and actually redistribute the money or reuse the money for other purposes without any accountability.”
Impact of the measure 118 and the $1,600 stimulus check on Oregon businesses and residents
When Measure 118 is implemented it will possibly represent the first of a major tax change in Oregon’s history. However, Oregonians in support believe that it will provide financial relief to residents of the state especially in this era of high cost of living.However, those who oppose this idea, fear that the measure could lead to inflationary pressures causing harm to consumers by raising the prices of goods and services.
Furthermore, businesses may find it hard to adjust to the increased tax burden and this can potentially affect jobs and business investments within the state. Additionally, the controversy by the people over measure 118 reflects a broader discussion about fairness, economic justice, and the role that taxation plays in society.
What happens if measure 118 is passed
If Oregon voters approve Measure 118 in November, the state will experience a certain level of revolution with regards to the economy. The measure would possibly have legal challenges and will require cautious implementation to ensure that the benefits get to all Oregon residents whilst avoiding economic harm. The result of this will inform decisions in other states who have intentions of implementing such a measure.
