Oregon Measure 118: A Hidden Sales Tax 3

Oregonians have a long-standing aversion to sales taxes, having rejected them at the ballot box ten times since 1910. Yet, Measure 118, a deceptively presented corporate tax, could impose a far more burdensome sales tax than any previously considered.

While framed as a tax on large corporations, Measure 118’s impact would primarily be felt by consumers. By replacing the current corporate minimum tax with a 3% gross receipts tax, the measure would effectively function as a sales tax, applied at every stage of production and distribution.

Key points to consider:

• Pyramiding effect: The tax would be applied multiple times as goods pass through the supply chain, leading to significantly higher prices for consumers.
• Regressive impact: The tax would disproportionately burden lower-income Oregonians, who spend a larger percentage of their income on essential goods and services.
• Economic consequences: The measure could deter businesses from investing in Oregon, hinder job growth, and ultimately harm the state’s economy.

Despite the potential negative consequences, Measure 118’s proponents argue that it would provide taxpayer rebates. However, these rebates would come at a significant cost to consumers and the state’s overall economic health.

Oregonians must carefully consider the true implications of Measure 118 before casting their votes. A disguised sales tax that could have far-reaching negative consequences is a choice that should be made with caution.