Eastern Oregon is abuzz with discussions surrounding a new ballot initiative that aims to raise corporate taxes to provide every Oregon resident with an annual $750 rebate. Known as Initiative Petition 17 (IP 17), this measure has already garnered 135,723 signatures as of June 14, surpassing the required 117,173 signatures needed to make it onto the November ballot. However, these signatures still need to be verified by the Secretary of State’s Office before the initiative can proceed.
“Could you use $750?” asks the website for the “Oregon Rebate” movement. “The new revenue will be rebated directly to all Oregonians, anyone who’s been an Oregonian more than 200 days of the previous year, regardless of age, income, or any other status.”
Proposed Tax Structure
The initiative proposes a new tax structure for Oregon businesses based on their sales. The minimum tax rates would range from $150 for businesses with sales under $500,000 to $100,000 for those with sales over $100 million. This tax increase is expected to generate at least $3.15 billion annually, enabling the state to distribute $750 rebates to all 4.2 million Oregonians each year. The rebates would be non-taxable and would not affect income benefits.
The Oregon Rebate movement argues that the increased taxes would primarily impact large corporations, as most small businesses generate less than $25 million in annual revenue. The movement’s website claims that the rebate could reduce child poverty in Oregon by 26% and equates to a 4.0% salary increase for the median Oregon household.
Opposition and Concerns
Opposition to the initiative comes from groups like Oregon Business and Industry and the Tax Foundation. Critics argue that the proposed tax would result in excessively high business tax rates, potentially harming the state’s economic climate. They point out that Oregon is one of only two states that impose both a gross receipts and a corporate income tax, leading to one of the highest business tax burdens in the country.
If the initiative qualifies, it will appear on the ballot for the November 2024 election, where voters will decide its fate.
