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NFIB Joins No on Measure 118 Campaign

September 1, 2024

NFIB Joins No on Measure 118 Campaign

With the blessing of its members, who overwhelmingly voted to oppose Measure 118 in a recent member survey, NFIB Oregon has joined the No on Measure 118 campaign. “It’s rare you’ll see this many bipartisan elected officials and business and labor groups unifying for a common purpose,” said Anthony Smith, state director for NFIB in Oregon. “Measure 118 is a seriously flawed ballot initiative with both obvious and hidden harms, and people are seeing right through it.” The list of people, groups, and organizations opposing 118 can be seen here. The coalition has put out a two-page Fact Sheet detailing what is at stake. According to NFIB’s analysis of it, Ballot Measure 118 would establish a tax increase on corporations, including S corporations, in the amount of 3% of gross sales in Oregon over $25 million. Although the direct target of the tax would be large corporations, the impact of such a large tax would undoubtedly reverberate throughout the entire economy and impose higher costs at every step of the supply chain for most NFIB members. The tax called for in Measure 118 would be in addition to any taxes already paid by these businesses. Similar to the concept of a Universal Basic Income, the measure requires the increase in corporate tax revenue to be rebated equally to all individuals who have lived in Oregon for 200 days during the previous calendar year, with certain exceptions. The Oregon Department of Revenue would determine the amount available for rebate each year. Estimates differ, but range between $750 -$1,500 annually per person, meaning a family of four would receive $3,000-$6,000 per year from the state. The measure would apply to 2025 and later tax years and would authorize rebates to be paid beginning in 2026. What Others are Saying

“It may look good on paper, but its flawed approach would punch a huge hole in the state budget and put essential services for low-wage and working families at risk.” — Governor Tina Kotek

“I think Oregonians are smart enough to know that free money is never actually free. Consumers, [are] going to be paying this tax through higher prices.” — Angela Wilhelms, President, Oregon Business & Industry Association

“It’s clear that this California-funded initiative has concerning, potentially dire implications for the critical services that hardworking Oregonians rely upon.” — Joint statement from Senate President Rob Wager, Speaker of the House Julie Fahey, Senate Majority Leader Kathleen Taylor and House Majority Leader Ben Bowman.

“Measure 118 is a hot mess!” — Tax Fairness Oregon

“Any tax that is based on general consumption will have a regressive impact on the distribution of the tax burden, meaning that lower income households will experience a higher tax burden as a percentage of their income than higher income households.” — Oregon Legislative Revenue Office report on Measure 118

“It is a tax so bad that even prominent Democrats stand with Republicans in rejecting it.” — Rep. Jeff Helfrich, R-Hood River

“In practice, affected businesses would likely move more of the operations out-of-state to avoid this.” — The Tax Foundation

“Measure 118 is another out-of-state and dangerous experiment that doesn’t align with the needs of Oregonians.” — Daniel Bonham, R-The Dalles

Topics:

Taxes

State:

Oregon

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