Voters will decide something this fall that could significantly impact small business
Small Business Owners Should Know About This Devastating Ballot Measure
New name, same bad news for small
Initiative Petition 28—a ballot
measure that would enact a 2.5 percent gross sales tax on Oregon corporations
that earn more than $25 million in sales—will now be called Ballot Measure 97
when voters make their voices heard in November’s election.
If passed, the measure would enact a
$30,000 minimum tax on sales over $25 million, in
addition to a 2.5 percent gross sales tax. The measure has business advocates
concerned for a variety of reasons.
Proponents say the revenue generated
from the tax—an estimated $6 billion by 2019—would be used to better Oregon
schools, health care, and services for the elderly. But business owners argue
there’s no guarantee that will happen.
“The measure does not amend the state
constitution, and one Legislature cannot decide for another how it will spend
money unless it does so with a constitutional amendment,” The Bend Bulletin reported.
Furthermore, some are worried that the
taxes will be passed onto small businesses and their consumers. Small
businesses often get their supplies from businesses that make more than $25
million, which would raise the cost of running their business and likely result
in higher prices for consumers.
“It’s actually all of us that will
end up paying the tax,” NFIB/Oregon State Director Anthony Smith said.
“Oregonians will see their gas bill, grocery bill, and electric bill go up [if
the measure passes.]”