Measure 118: Financial relief or a costly burden?
PORTLAND, Ore. (KOIN) — Measure 118 is called the "Oregon Rebate" by proponents. But those who are opposed to it say it's a promise that will ultimately result in a costly burden.
The controversial measure on the Oregon ballot on Nov. 5 proposes raising corporate taxes to give every Oregon resident — including children — $1,600 per year.
If passed, Measure 118 would raise the corporate minimum tax by 3% on sales exceeding $25 million, creating what the Oregon Department of Revenue says would be an extra $7 billion per year.
Supporters say the extra revenue, distributed equally among all Oregonians, would help people with their bills, childcare and emergency needs, like the federal money sent out during the pandemic — only it's given out yearly.
"We're getting a family of four $6,400 to be able to make sure that they are able to do much better. We also are recognizing and understanding that those who maybe on paper are doing a little bit better still actually can't sustain a $500 unexpected expense," said Stacey Rutland, with the Yes on 118 Campaign.
Opponents say consumers will ultimately pay higher prices, with the tax passed along and potentially impacting state budgets for things like education and social services.
"Well, it kind of wastes about $3 or $4 billion 'cause rich people — I don't need it, right? But it's coming to me. That doesn't make any sense when we have all sorts of other needs. We don't have enough people working in BOLI to make sure employees are protected. We don't have enough money being spent on foster care," said Jody Wiser, with Tax Fairness Oregon.
The measure states you would have the option not to take the tax credit or a check if the rebate is larger than what you owe in taxes. Besides big companies, most legislative leaders — both Republicans and Democrats — along with labor unions have come out against the measure. Oregon Governor Tina Kotek is also among those opposed to the measure.
There have already been plenty of ads against Measure 118 airing on TV. However, the Yes on 118 campaign told KOIN 6 News its own slate of ads will begin broadcasting this week.