Proposed corporate income tax measure heads for political fight

Medford, Ore. — Six months before it could even appear on your general election ballot, a business tax proposal appears to be headed for a political fight.

Republicans and Democrats are digging in over IP 28, an initiative petition to place a corporate income tax measure before the voters in November. Under IP 28, corporations with Oregon sales of more than $25-million will pay a minimum tax of $30,000 plus 2.5 percent of the excess over $25-million.

Republicans and Chambers of Commerce across the state are lining up against it.

“It is a regressive tax that’s going to be a tax on Oregon sales at every level,” Chamber of Medford/Jackson County CEO Brad Hicks said. ” So I think it’s being portrayed as one thing when it’s really a whole bunch of other things.”

Democratic Senator Alan Bates said he believes corporations should pay more, but the proposed 2.5 percent tax hike may be overreaching.

“They’re not paying their fair share, but we don’t want to overtax them,” Senator Bates said. “We need money for K-12 higher education. If we don’t do those things tuition is going to go out of sight.”

According to an analysis by the Legislative Revenue Office, the proposed tax will bring $6-billion in revenue each biennium. Supporters said the money will go to education, health care, and senior services.

“There’s a very specific need for this money. It has to happen, it has to come from somewhere,” President of Oregon PTA Collin Robinson said. “So we’re looking at corporations who are doing the largest in sales and asking them to pay their fair share.”

But the same analysis showed it would likely cost consumers about $600 a year for the average Oregonian, and there could be slow private sector job growth.

A group called “Our Oregon” collected more than 130,000 signatures and turned them in to the Secretary of State’s Office Friday. That’s nearly 42,000 more signatures than they needed.

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