Lawmakers proposed a 0.95 percent tax on business sales over $5 million Thursday as their most detailed effort yet to shore up the state’s budget in coming years, reports KGW. An estimated 5,000 Oregon businesses would be impacted by the new tax, and raise an estimated $2 billion in state revenue during the 2017-2019 budget cycle.
State democrats argued that the tax would help stabilize the state’s budget, which is primarily influenced by personal and corporate income taxes, and thus susceptible to economic fluctuations.
“To think that fiscal discipline and cost containment — and just tightening our belt — is going to solve this problem is not supported by the numbers,” said house speaker Tina Kotek, according to KGW.
The proposal would replace existing corporate income tax, businesses with sales under $5 million would pay an annual $250 filling fee, and those businesses with sales under $150,000 would pay nothing.
Republicans rebutted the bill, comparing it to the failed Measure 97 that was rejected by voters just last year.
