Oregon Business Tax Increase, Measure 97 (2016)

The League of Women Voters of Oregon (LWVOR) is a grassroots, nonpartisan political non-profit organization that encourages informed and active participation in government in order to build better communities statewide. We envision informed Oregonians participating in a fully accessible, responsive, and transparent government to achieve the common good.

Part of our mission is to evaluate important measures proposed for the ballot and evaluate them to see if they would improve our state. Our advocacy committee analyzed Measure 97 and determined it would improve Oregon’s schools, its healthcare, and vital senior services.

Every facet of Oregon’s schools and services budget has been plagued with revenue shortfalls for more than a generation. We have placed limits on the state’s ability to impose new taxes, which has caused inadequate funding of schools and public services.

Measure 97 is the best proposal in a decade to address the long-standing budget shortfalls facing schools and health care in the state. By focusing increased taxes only on corporations with more than $25 million in Oregon sales, Measure 97 protects Oregon small businesses, an important ingredient to a successful ballot measure. Finally, because Measure 97 dedicates new funding to K-12 education, healthcare, and services for senior citizens, we can be confident the money raised from these corporate taxes will be invested in the services Oregon families need.

(This information furnished by Alison Uhrlass, Vote Yes on 97 for a Dignified Retirement, Affordable Healthcare, and the Schools our Children Deserve.)^[17]

Corporate profits are at an all-time high, but Oregon families are struggling. Vital services – like education, healthcare, and senior services – have faced years of cuts. Revenue from Measure 97 would provide the resources to invest in lower class sizes, access to healthcare for the 383,000 Oregonians who currently have none, and in-home care for seniors.

For years, big out-of-state corporations have used loopholes and offshore tax havens to pay lower taxes in Oregon than in any other state in the country. That means that Oregon’s small businesses shoulder a disproportionate share of the burden – with Oregon’s smallest businesses paying far more taxes as a percentage of their sales than the largest corporations do.

Measure 97 will affect only the largest corporations doing business in Oregon — those with more than $25 million in Oregon sales. Most of the businesses that will pay more are out-of-state corporations: less than one half of one percent of Oregon businesses will be affected. Measure 97 will level the playing field between big out-of-state corporations and Oregon’s small businesses, forcing the biggest corporations to finally pay their fair share for schools, healthcare, and senior services.

The Main Street Alliance is a network of small business owners joining together to advance public policies that are good for our businesses, our workers, and the communities we serve. The Main Street Alliance advocates for economy-boosting investments – and that’s why we’re supporting Measure 97.

The Main Street Alliance of Oregon urges you to vote Yes on Measure 97.

(This information furnished by Laura Simmons, Vote Yes on 97 to Protect Small Businesses and Make Large Out of State Corporations Pay Their Fair Share.)^[17]

Oregon has faced a consistent revenue shortage for the past 25 years, resulting in fewer opportunities and protections for Oregon's students and vulnerable populations. Forty years ago, corporations paid 18.5% of all Oregon income taxes; today they pay just 6.7%. While Oregon’s economy and population have grown, limitations on the state's ability to raise revenue have prevented adequate funding of schools and critical services.

Why vote YES?

• Measure 97 presents a long-awaited opportunity to correct decades of disinvestment in the education and the well-being of Oregonians.
• Measure 97 will increase stability in the state's budget in times of economic downturn, and help ensure the vitality of Oregon’s educational, healthcare and senior services.
• While Measure 97 might dampen private sector job growth, it will not produce job losses and will in turn produce higher paying public sector jobs.

Who is City Club of Portland?

We bring together civic-minded people to make Portland and Oregon better places to live, work and play for everyone. Read our complete recommendation and become a City Club member at: www.pdxcityclub.org

(This information furnished by Mike Marshall, Executive Director / City Club of Portland.)^[17]

Nurses know when families have access to the healthcare they need when they need it, they are healthier, live longer, and are more financially stable. That’s what every child in Oregon deserves.

Having healthcare can be life and death — yet 383,000 Oregonians and 37,000 children are uninsured. It’s unacceptable and it doesn’t have to be this way.

It’s frustrating to know that one reason families in Oregon don’t have the affordable healthcare they need is that large and mostly out-of-state corporations don’t pay their fair share in taxes. In fact Oregon ranks 50th in the nation in corporate taxes. If we ask large corporations to do their part, we could invest in quality, affordable healthcare for all Oregonians.

That’s why we support Measure 97. It makes only big corporations — ones with more than $25 million in sales — pay a higher minimum tax on sales above $25 million, and dedicates the money to healthcare, education, and senior care.

“Corporations like Bank of America can afford to pay more — Oregon families can’t afford another day without health coverage.”

Bruce Humphreys, BSN

Bend, Oregon

Here’s what Measure 97 could mean in Oregon:

• Hundreds of thousands of Oregonians could get healthcare coverage
• Funding for mental health services could finally help thousands
• Oregon could invest in addiction treatment and help families tackle drug addiction
• Every kid could have access to healthcare

So much could be done that would make every community in Oregon better, and that’s why we support Measure 97 so strongly.

“This is our chance to invest in Oregon’s families. Measure 97 can make our communities healthier by increasing access to healthcare and decreasing out-of-pocket costs for patients.”

Susan King, MS, RN, CEN, FAAN

Portland, Oregon

Please join Oregon’s nurses and healthcare advocates in voting Yes on Measure 97, so we can make critical investments for Oregon families.

(This information furnished by Alison Uhrlass, Vote Yes on 97 for a Dignified Retirement, Affordable Healthcare, and the Schools our Children Deserve.)^[17]

The stats clearly show that Oregon’s schools aren’t good enough for our kids:

• Oregon has the 3rd largest class sizes.
• We have the 4th lowest graduation rates.
• We’ve cut almost half of our Career and Technical Education classes.
• We have been ranked 39th in school funding.

But if you’ve been in a classroom anytime in the last decade, you don’t need stats to tell you we’re shortchanging our kids.

Teachers have almost no time for one-on-one instruction. Our kids no longer have access to electives, and they are missing opportunities to truly thrive. And in the span of an Oregon student’s K-12 public education, they receive a full year less instructional time than Washington students.

Measure 97 funds education by increasing the corporate minimum tax on large and out-of-state corporations so that we can finally make real investments in our schools.

Oregon currently has the country’s lowest corporate taxes. Making corporations — like Comcast, Monsanto, and Bank of America — that do more than $25 million a year in taxes pay more to support our communities makes sense.

If you have a kid in an overcrowded and underfunded classroom, you’ve probably dreamed of what it would mean for them to get real one-on-one instructional time and the tools they need to thrive. A great K-12 education doesn’t have to be a dream — Measure 97 can make it a reality, but we need your vote to finally give our kids the schools they deserve.

Measure 97 is Oregon’s chance to fix these problems. It’s an opportunity for Oregon to invest in a better future – with great schools for every Oregon school kid.

(This information furnished by Alison Uhrlass, Vote Yes on 97 for a Dignified Retirement, Affordable Healthcare, and the Schools our Children Deserve.)^[17]

We all know how much of an impact a teacher can have on a child’s life. Everyone can remember that one teacher that made their life better. Teachers can change lives, but they need the time and tools to make a difference in the classroom.

“In my 15 years of teaching, I’ve seen first-hand how disinvestment in education has impacted my students. It has created larger class sizes, fewer programs, and less time for them to learn. I’d love to be able to give my students more one-on-one attention, but that gets harder with each year that passes. I worry that hundreds of thousands of kids are missing out on the opportunity to succeed. We must do better.”

Heather Anderson

2016 Oregon Teacher of the Year

School budget shortfalls mean too many of our children are slipping through the cracks. Want proof? Oregon now has one of the lowest graduation rates in the country. We need to make a change before it’s too late. Measure 97 is the change our state’s students need.

Measure 97 will make large and out-of-state corporations pay their fair share so we can improve the quality of our kids’ education. We can hire back thousands of teachers, reduce class sizes, and restore school days. Measure 97 means we can finally be on a path to raising our graduation rate.

Measure 97 protects Oregon families while raising money for schools because it only taxes corporations that do more than $25 million in sales like Monsanto, Comcast, and Bank of America. Right now, our schools struggle because corporations doing business in Oregon pay lower taxes here than in any other state. Measure 97 will fix this — and help Oregon families.

(This information furnished by Alison Uhrlass, Vote Yes on 97 for a Dignified Retirement, Affordable Healthcare, and the Schools our Children Deserve.)^[17]

Measure 97 is written to only increase the minimum tax on corporate sales above $25 million. This means small businesses and consumers are protected by the tax. 82% of the corporations affected by the measure are headquartered outside the state. According to the Anderson Economic Group, Oregon has the nation’s lowest corporate taxes — out-of-state and multinational corporations can afford to pay a higher rate in Oregon. They pay higher taxes in every other state.

Economists from around Oregon have examined Measure 97 and agree that it shields small businesses and consumers and makes only corporations with more than $25 million in sales pay more.

"The most important thing we can do for the Oregon economy is to invest in pre-K and K-12 education. Measure 97 will do that by ending decades of underfunding our classrooms, especially career and technical education which is the key to a skilled workforce. And it will level the playing field for Oregon-based small businesses that are paying their fair share in taxes by requiring big out-of-state companies to do the same."

Scott Bailey

Economist, MS of Economics, Portland State University

“The Anderson Economic Group, which compares the taxes businesses pay with their profits (pre-tax operating surplus), ranks Oregon 50th — dead last in the country — in corporate taxes. The only reasonable way to generate the revenue we need to improve Oregon’s schools, healthcare and senior services is by forcing corporations to pay their fair share.”

Martin Hart-Landsberg, PhD

Professor Emeritus of Economics, Lewis & Clark College

“Measure 97 is designed to hold the largest corporations accountable. It will raise taxes on only the largest corporations, affecting one-quarter of 1% of the companies doing business in Oregon.”

Mary C. King, PhD

Professor Emerita of Economics, Portland State University

(This information furnished by Laura Simmons, Vote Yes on 97 to Hold Large Out-of-State Corporations Accountable and Invest in Oregon’s Economy.)^[17]

Individual Oregonians pay more than their share of state taxes

40 years ago, 18% of Oregon’s income tax revenues were paid by corporations. Today it is only 6.7%. Worse, Oregon is dead last in the country – 50th out of 50 states – in total corporate taxes according to the respected national accounting firm Ernst & Young.

Fewer than 1% of Oregon businesses will pay under measure 97

All sole proprietors, Sub-S and B corps, and the vast majority of C corporations will not see an increase in their tax burden under Measure 97. Only C corporations with more that $25 million in Oregon sales would have their minimum tax rate increased.

Most costs will be paid by big out of state corporations

The NO campaign wants to convince consumers that if Measure 97 passes, costs will be passed along to them. This is just a scare tactic. In fact, there wouldn’t even be a vote NO campaign if big corporations could just pass along the costs to consumers.

Without Measure 97 we will be forced to endure budget cuts

Measure 97 may not be a perfect measure, but it will shape our state’s future for years to come. If it fails, we will face the painful dilemma of declining budgets and increased need for funding of education and critical health care all across Oregon.

Right now we have one of the shortest school years in the nation, and the third-largest class sizes. We have seen a 29% increase in the number of seniors living in poverty since 2008. More than 200,000 people struggle to get by without affordable health insurance.

We cannot cut our way to a better Oregon. Join us in voting YES on this important ballot measure.

Governor Kate Brown

Former Governor Barbara Roberts

Former Governor Ted Kulongoski

(This information furnished by Robert Stoll.)^[17]

We are the association for Oregon’s public school principals, superintendents and administrators. Our daily work focuses on setting our kids up for lifelong success. We know our students deserve better than the third-largest class sizes and one of the shortest school years in the nation. They deserve schools that offer art, music, PE, vocational and career and technical programs. They deserve to graduate from high school prepared for career and college success.

In our communities, parents and others tell us all the time that our kids:

• Need schools that have sufficient teachers, counselors and other staff, not only to reduce class sizes, but to make sure each and every student receives personal attention and support to help them be successful.
• Need a well-rounded education with challenging and engaging coursework, in reading and math and science, and also in music, the arts, engineering and career-technical-education (CTE).
• Should graduate from high school fully prepared for the next step, wherever their path may lead.

There is only one way to make these things happen – more resources for schools. Politicians – even those who see and acknowledge the problem – have been unable or unwilling to solve it for more than 20 years. That’s an entire generation of Oregon students.

Without Measure 97, we won’t be able to do what’s needed: hire more teachers, reduce class sizes or provide the well-rounded education our children need to be successful in life. We are committed to making sure that the money Measure 97 raises will directly benefits our students, and we are confident that it will.

We simply can’t wait another 20 years while politicians continue to talk about it. This generation of Oregon students is counting on us to do something now. That’s why we are supporting Measure 97.

(This information furnished by Morgan Allen, Confederation of Oregon School Administrators.)^[17]

Right now, Oregon has the lowest corporate taxes in the nation. For years, large out-of-state corporations have taken advantage of tax loopholes and subsidies, and used offshore tax havens to keep from paying their fair share. That might be good for huge out-of-state corporations, but it’s bad for Oregon’s small businesses, which have been forced to bear a disproportionate burden.

Oregon’s low corporate taxes are hurting our families and our communities. Because large and out of state corporations aren’t paying their fair share, our state is suffering:

• Oregon children are being left behind. Our class sizes are the third largest in the country, and our school year is one of the shortest. Measure 97 would allow Oregon to hire more teachers, keep class sizes down, and lengthen our school year.
• Healthcare costs keep going up, and far too many Oregon children have no health insurance at all. An unexpected medical emergency could bankrupt a middle class family.
• Too many seniors are having trouble making ends meet – between high healthcare costs and too little retirement savings, it’s becoming more and more difficult for Oregonians to retire with dignity.

Measure 97 will solve these problems by asking the largest corporations – those with over $25 million in Oregon sales – to pay more, and dedicating the revenue directly to education, healthcare, and senior services.

Under Measure 97, only the largest corporations will pay. Small Oregon businesses like mine won’t pay a penny more.

I’m a small business owner, and I’m standing with hundreds of Oregon businesses in support of Measure 97.

Maurice Rahming

O’Neill Electric

Portland, Oregon

(This information furnished by Laura Simmons, Vote Yes on 97 to Protect Small Businesses and Make Large, Out of State Corporations Pay Their Fair Share.)^[17]

Since 2003, the volunteers of Tax Fairness Oregon (TFO) have worked towards an equitable and adequate tax system. We’ve also saved the state millions of dollars in tax giveaways. That’s why we support Measure 97.

For decades, Oregon’s budget has been squeezed between giant boulders: property tax limits imposed in 1990 by Measure 5 and the decline in the share of taxes paid by corporations. Measure 5 squeezed the budget indirectly because the limits on property taxes required the Legislature to replace the funds lost by local schools.

The Legislature accomplished that by cutting other state services. So Oregon’s fiscal crisis applies to all state institutions, not just to schools. That means 97 will help the whole state budget, not just the school budget.

Early on, the Legislative Revenue Office estimated that corporations will pass $613 through to households with incomes between $48,000 and $68,000. It would be $500 for households with income from $21,000 to $34,000 and $372 for households with less than $21,000. It’s unlikely the tax would cost consumers that much.

Ask yourself: would your family be willing to pay that much more if it meant your children and your neighbor’s could graduate high school on time and afford to go on to college or technical school? What if your household could afford better health insurance, or your grandparents could remain in their home? 97 will make those things possible.

Oregon voters face the possibility of pass-through whenever we vote to increase corporate taxes, because corporations can try to pass any tax along. If voters are too fearful about pass-through to vote for an increase in corporate taxes, there won’t be much chance to make corporations pay their fair share. That’s why opponents of 97 are threatening a pass-through so loudly.

Passing 97 will still leave Oregon encumbered by Measure 5. TFO will need your support to take it on.

(This information furnished by Jody Wiser, Tax Fairness Oregon.)^[17]

Small businesses are a huge force in Oregon’s economy – we create good jobs and support our communities. Meanwhile, for years, big out-of-state corporations have been exploiting loopholes and offshore tax havens to avoid paying their fair share of taxes. In fact, in 2013, 530 corporations paid no state taxes. And experts say that Oregon loses $283 million each year to offshore tax havens.

That means small businesses like ours often pay higher tax rates than huge corporations like Comcast, Chevron, and Bank of America.

Under Measure 97, only the largest corporations — those with over $25 million in Oregon sales – would pay more. It would make small businesses more competitive, enabling us to hire more workers and boost our local economies. And Measure 97 dedicates the money to schools, healthcare, and senior services — investments in our future that will benefit all Oregonians.

We’ve studied the measure closely, and we know that our businesses and our state will benefit. Small businesses won’t pay a penny more — but we’ll be better able to compete with big corporations if everyone is paying their share.

(This information furnished by Alison Uhrlass, Vote Yes on 97 for a Dignified Retirement, Affordable Healthcare, and the Schools our Children Deserve.)^[17]

About 98% of Oregon’s farms and ranches are family owned and operated. They are the backbone of our agricultural economy and provide food and farm products to Oregonians and customers worldwide. To continue to be successful, we need a healthy and educated workforce.

Our state’s economy is hurting and our family farms are struggling to find workers. It is shameful that our high school graduation rate is among the lowest in the country. We work hard and pay our taxes, but Oregon needs more. We need large, international corporations like Monsanto and Wal-Mart to step up and pay their fair share. Corporations like Monsanto and Wal-Mart make billions of dollars but many pay next to nothing to support our state.

Measure 97 will require large multinational corporations to help provide needed funding for Oregon’s schools and healthcare. It will improve our quality of life and help our family farms and small businesses compete in our national marketplace.

“I’ve worked hard to build a strong, local business here in Oregon and I take pride in what I’ve grown. I don’t particularly love paying taxes — but I do my part and pay my fair share. However, big out-of-state competitors do not pay theirs. We need to hold them accountable and level the playing field for Oregon-grown businesses.”

Don Schoen

Rolling Acres Hazelnut Orchard

Hillsboro, Oregon

“As a lifelong Oregonian, I am proud to have built a successful nursery business in our state. I received a quality education in Oregon, an education that gave me the tools to start my business. I’m frustrated that same education is no longer available to our children. Our children deserve better. It’s way past time to require large corporations to pay their fair share to ensure our future prosperity.”

Jim Gilbert

Northwoods Nursery

Molalla, Oregon

(This information furnished by Laura Simmons, Vote Yes on 97 to Protect Small Businesses and Make Large, Out of State Corporations Pay Their Fair Share.)^[17]

Our company is greatly troubled by Measure 97. Not because we have more than $25 million in sales that would be taxed at the highest rate in nation. We don’t. In fact, we’ll likely never reach that level and never pay Measure 97’s enormous tax directly.

Del Rio Vineyards is a multi-generational, family owned business that is a part of a long agricultural history dating back 150 years. We’re proud that our wines are enjoyed all over the world and we’re doing our part to maintain and improve Oregon’s reputation as an outstanding wine-producing state.

While Del Rio wouldn’t be directly subject to Measure 97 taxes, our suppliers, distributors and retailers most certainly would. Our concern is that those taxes would end up being paid by consumers in the form of higher prices.

Unlike a regular sales tax with exemptions for food and basic necessities, there are no exemptions in Measure 97’s hidden sales tax. Oregon voters have rejected sales taxes nine times. Now Measure 97 sponsors are trying sneak through a sales tax Oregonians won’t see on their receipts. A former state economist said the measure is “like a sales tax on steroids.” (East Oregonian, 3/18/16)

Economists in Oregon’s Legislative Revenue Office called the tax “regressive” because Oregon’s lower-income families and the working poor will carry the heaviest burden of higher prices caused by Measure 97. In fact, Oregon families making less than $21,000 a year are hurt most by the higher prices, especially when compared to higher earners. This is simply unfair.

Backers claim the $6 billion from Measure 97 will all come from big, out-of-state corporations. Don’t let them fool you. Measure 97 is a hidden sales tax. It’s about adding a tax on sales that impacts all small businesses and takes more money out of the pockets of every Oregon family.

Learn more at FactsAbout97.com and

please join us in voting NO on Measure 97.

(This information furnished by Rob and Jolee Wallace, Owners, Del Rio Vineyards.)^[17]

Oregon – $8,157 U.S. State Average – $5,457

State & local government tax spending per person

You will “over-pay” for groceries, gas and medicine from higher taxes to pay for an “overly expensive” government that already spends 49% more than the average state per person.

Follow us – OregonWatchdog.com

(This information furnished by Jason D Williams, Taxpayer Association of Oregon.)^[17]

Powell’s Books is in a highly competitive, low profit margin business. We’re challenged every year to figure out how we’re going to be viable against large, out-of-state competitors. When we consider the dramatic increase in expenses we would face from Measure 97, we simply don’t know how we’d pay for it.

When most businesses face increased expenses, they can either raise prices or reduce costs. Raising prices isn’t an option for us. Publishers set the prices of books in our industry. Expenses we can control are mostly employee related costs. Reducing staff makes no sense if it impairs the level of service that makes Powell’s a special place for book lovers.

Backers of 97 argue it's a tax only on giant, faceless, out-of-state companies. That doesn’t describe Powell’s or other Oregon companies directly taxed under Measure 97 at all. In fact, one quarter of the companies directly taxed by 97 are Oregon-based companies just like us.

While our business would be directly taxed by Measure 97, every Oregon business – and every Oregon consumer – would feel the burden of the new tax. As the nonpartisan Legislative Revenue Office reported, two-thirds of the $6 billion tax would end up as a hidden sales tax paid by Oregonians in higher prices on virtually everything we buy from food, cable, phone service and housing to gas, electricity, insurance, medicine and health care.

As booksellers, we don’t usually get involved in political issues. As Oregonians, we want to solve the challenges facing our state. This tax would impact our neighbors, customers and employees to such a degree—and with no guarantee or accountability for how the money will be spent—that we find we have no choice but to oppose it.

We urge you to find out more about Measure 97 at FactsAbout97.com, and vote No.

Miriam Sontz, CEO of Powell's Bookstore

Emily Powell, President and Owner of Powell's Bookstore

(This information furnished by Emily Powell, President & Owner, Powell's Bookstore.)^[17]

Our members provide most of the union construction work in Oregon. We partner with our unions to lead the construction industry with the highest levels of quality, skill, and integrity. We believe that the public interest and our industry are best served through a harmonious working relationship between the employer and the employee.

By taxing sales rather than profits at the highest rate in the U.S., Measure 97 will hurt the construction industry, union contractors and workers, and Oregon consumers.

Under current law subcontractors are taxed on the profit that they earn on a job. But under Measure 97, subcontractors would be taxed on the entire cost of materials, equipment and labor because all of these things are “sold” to a general contractor. This would be a staggering tax increase that would have costly and damaging consequences. Measure 97 would also act as a “tax on a tax” as manufacturers, wholesalers and retailers would be taxed on the sale of materials and equipment and would pass those costs on to subcontractors.

In many instances this new tax on sales would be so high that it would wipe out a subcontractors entire profit, forcing the subcontractor to pass costs on, reduce salaries and benefits, or both. That's why Oregon’s nonpartisan Legislative Revenue Office concluded that Measure 97 would increase prices for consumers and result in the loss of 38,000 private sector Oregon jobs.

Measure 97 would be particularly bad for union subcontractors as they would be put at a competitive disadvantage by being taxed on the higher wages and benefits they provide their workers. That’s just wrong.

Please join Oregon’s union subcontractors in voting no on this tax that will hurt Oregon’s construction industry, workers, and consumers.

(This information furnished by John Killin, Executive Director, Associated Wall and Ceiling Contractors of Oregon and SW Washington.)^[17]

When I first heard about Measure 97, it sounded like a good idea–money for education, senior services and healthcare. The more I learned about the very real impacts on Oregon families, the more shocked I am that something so harmful to us would even be considered.

My husband and I live on a fixed income. Over the last three years, hard times have hit our family and forced two of our three adult children to move home with us along with two of our grandchildren. And we’re not alone. Many families in our community are going through the same struggles.

I don’t know what we’d do if the costs for essential items were to increase. We save every penny and watch every dime to make ends meet. Measure 97 would increase the prices we pay to purchase groceries, fill our prescriptions, put gas in our car, or even turn on our lights or run heat in the winter. We must purchase these items every week to go about our lives, and we don’t have the flexibility to just increase our household spending budget to account for it.

As a retired Family Advocate from the Redmond School District, I’ve worked with hundreds of families just like ours, with parents who care deeply about their children’s future and are doing their best to get by. I dedicated myself to finding solutions for problems. Measure 97 is NOT a solution—not for our schools, for senior citizens and certainly not for the thousands of Oregonians on fixed incomes.

The sponsors of Measure 97 should have known better. This tax would be harmful to so many Oregonians who are already working too hard to make ends meet.

Measure 97’s tax on Oregonians would be a serious burden upon our family and many other families in our community. Please vote no on Measure 97 – we just can’t afford it.

Gemey Cameron

Terrebonne, Central Oregon

(This information furnished by Gemey Cameron, Retired Citizen, Central Oregon.)^[17]

The Oregon Business Association is committed to a healthy economy and healthy schools for our state. Measure 97 would result in costly impacts for businesses large and small, as well as for Oregon consumers.

The proponents claim this would only impact out-of-state corporations, but that’s not true.

Measure 97 would impose a huge new $6 billion tax on Oregon sales – the largest tax increase in state history. It would increase costs for Oregon small and local businesses, working families and consumers with no guarantee where the money would be spent. If passed, this extreme measure would make Oregon businesses less competitive and make Oregon products and services more expensive for all of us.

The nonpartisan Legislative Revenue Office (LRO) concluded that this giant tax increase would result in the loss of over 38,000 private sector jobs. Because Measure 97 would be a new tax on sales—not profits—businesses would be forced to pay the tax on their topline, regardless of whether they make a large profit, small profit or no profit at all. Many employers would be forced to increase prices, cut jobs, or both.

The LRO study also found that two-thirds of this new tax would be passed on to consumers in higher costs of goods and services Oregonians buy every day. Electricity, fuel, insurance, food, medicine and many more necessities would be subject to the tax—costing families an average of $600 per year. Those who could least afford it would get hit the hardest by this tax.

Measure 97 doesn’t even guarantee how the $6 billion would be spent. All the money would go in the state General Fund with no requirements, plan or accountability to Oregonians for how the money will be spent.

Measure 97 is dangerous to our economy, hurts small businesses and is costly to consumers. It’s wrong for Oregon and it deserves a NO vote.

(This information furnished by Ryan Deckert, President, Oregon Business Association.)^[17]

Sponsors of Measure 97 claim that the $6 billion tax increase will only impact large, out-of-state corporations. That’s patently false. Measure 97 hits small businesses far worse than large corporations. That’s why Associated Oregon Industries (AOI) and its 1,450 members are urging voters to reject Measure 97.

Measure 97 forces a tax on sales, not on profits. There are no deductions, no exemptions and no phase-in period. It’s an across-the-board tax hike on business’ top line, not bottom line. Only five other states in the nation have a similar gross receipts tax, all with much lower rates than Measure 97 is proposing.

The tax on sales would hurt smaller, Oregon-based businesses more than large, national chains. Big chains are vertically integrated; they make, package, ship and sell their own products and would pay one 2.5% tax on their sales in Oregon. Most local companies get products from manufacturers and distributors who'd each pay the tax, so the costs they (and their customers face) would often be 7.5% or more.

M97's tax would also be an immediate burden on startup companies that initially have little or no profit – making Oregon one of the worst states to locate a tech company that initially has high sales, but virtually no profit for many years.

AOI has long advocated for improvements and funding for our state’s schools. Today’s students are our employees of the future. Education and workforce development are critical to our economy. But Measure 97 doesn’t guarantee funding for education, or anything else for that matter. The tax goes into the General Fund which can be can be spent by lawmakers on anything they wish. The July 20, 2016 Portland Tribune editorial noted: “The Legislature can spend the available money in any way it sees fit—on pensions, prisons or pet projects.”

Measure 97 hurts Oregon small businesses, which are the backbone of our economy. Please vote NO.

(This information furnished by Jay Clemens, President, Associated Oregon Industries.)^[17]

Our broad-based coalition represents tens of thousands of individual Oregon citizens, farm families, small business owners, major local employers and over 100 local and state organizations. We all agree Measure 97 is misleading, harmful to Oregon consumers and small businesses, and bad for Oregon’s economy.

Revenues are not really dedicated to education – or anything else. Under state law and past Oregon Supreme Court decisions, initiatives like 97 cannot dictate future legislatures’ spending decisions. The Legislative Counsel, the top legislative law expert, determined the legislature could spend the revenues “any way it chooses.”

It would be costly for Oregon consumers and businesses. Taxing the sales of companies providing most of the goods and services in Oregon is just a tricky way of imposing a hidden sales tax. All economic studies show that by increasing the prices of food, housing, electricity, gas, insurance, medicine, health care and other essential products and services, 97 would increase living costs for Oregon families and operating costs for local businesses, ranging from farmers, small retailers and restaurants to high tech companies.

It would especially hurt consumers and small businesses who can least afford higher costs. Oregon’s top taxation authority, the Legislative Revenue Office, concluded 97 would be regressive and cost a typical household $600 per year. It wouldn’t make “big corporations pay their fair share.” It would force low-income families, seniors on fixed incomes and small businesses who can least afford higher costs to pay more than their fair share. LRO also concluded 97 would cause the loss of 38,000 private sector jobs, hurting our state’s economy.

It’s wrong to increase state revenues with a badly-designed tax that would increase costs for essentials like food, medicine and health care, put the biggest burden on families and small businesses who can least afford it, cost thousands of Oregonians their jobs–and let politicians spend the money however they choose.

Please vote NO on 97.

(This information furnished by Rebecca Tweed, Defeat the Tax on Oregon Sales.)^[17]

As school board members our top priority is ensuring that Oregon students receive an excellent education that prepares them for college, career and life. We want our schools and teachers to have the resources they need to help students succeed.

We also know that what happens at home is just as important for a child’s learning as what happens in school. Unemployment, poverty and other consequences of a poor economy reduce a child’s ability to learn at school and succeed in life.

We oppose Measure 97 because it damages our economy and hurts low and middle-income families without guaranteeing a single extra teacher or school day.

The State’s nonpartisan Legislative Revenue Office (LRO) says Measure 97 will result in fewer jobs, reduce household income and cost families hundreds of dollars per year. LRO also says these impacts would be most severe for low-income families.

The State’s nonpartisan lawyers say that the legislators can spend the dollars from Measure 97 however they please and that there is no guarantee that the dollars will make their way to the classroom. This is the wrong way to address Oregon’s school funding needs.

We’d love more money for schools. But if voters are asked to approve a tax increase, they shouldn’t be asked to face reduced job prospects and lower household income, and they should be guaranteed that the money will improve our schools.

Oregon needs thriving schools and a thriving economy. Measure 97 pits the two against each other. It is poorly drafted, damaging to Oregon’s economy and families, and does nothing to guarantee improved education. Please join us in voting NO.

Bend-La Pine School Board

Pamela Knowles, Director, Portland Public Schools

Kevin Cassidy, Board Member, Baker 5J

Kris Howatt, Gresham-Barlow School Board Member

Hank Perry, Oregon School Boards Assoc. Board Member

Jake Gibbs, Oakland School District Board of Education member

(This information furnished by Rebecca Tweed, Defeat the Tax on Oregon Sales.)^[17]

I’ve dedicated myself to strengthening the Southern Oregon economy and to ensuring that Oregon students have an opportunity to thrive in a rewarding career. Measure 97 hurts these efforts. As the former lead economic development official for Southern Oregon, I know that Measure 97 will damage Oregon’s efforts to expand job opportunities for Oregon families.

Measure 97’s tax on sales would be the highest in the country. Businesses would be forced to pay this tax even if they earned low profits or no profits at all.

Measure 97 would put Oregon communities at a significant disadvantage to other states in the effort to grow jobs. Oregon’s nonpartisan Legislative Revenue Office reported Measure 97 would cost Oregon 38,000 jobs and cost the average family over $600 per year as a result of higher prices, reduced household income, and other impacts. That is not the sustainable, well-considered tax reform all Oregonians need.

I believe Oregon needs more funding for education and career training as well as significant tax reform but Measure 97 is ill-conceived and unsustainable and will damage Oregon’s economy.

Earlier this year I helped lead the charge to pass a bond measure to improve the facilities at our community college. We were successful because the measure raised money for specific improvement projects that were clearly spelled out for taxpayers.

Measure 97 on the other hand is a blank check to politicians in Salem to spend the increased taxes however the legislature pleases.

Oregon needs solutions that support a healthy economy, great schools and sound tax policy. Unfortunately Measure 97 damages our economy, reduces job prospects for Oregonians, and costs families hundreds of dollars per year while doing nothing to guarantee improved education. Please join me in voting no.

(This information furnished by Ronald G Fox, Community College Board Member.)^[17]

Wilco is a cooperative owned by about 3,000 Oregon farmers. We support our farmer-members with a wide range of products and services to help make farm operations more productive and competitive globally. We also operate 18 farm stores stocked specially to serve our farm communities.

After carefully reviewing Measure 97, our board strongly opposed it.

Measure 97 would tax a company’s sales, not its profits. Like the personal income tax, corporate income tax rates are intended to reflect the taxpayer’s ability to pay, with those earning more profit paying more in taxes.

But under Measure 97, businesses would pay a 2.5% tax on their total sales regardless whether they make little or no profit or are actually losing money. Wilco would be hit especially hard by that change because we have a very slim profit margins.

Our customers would also feel the impact of Measure 97’s “tax on a tax on a tax.”

Because Measure 97 would tax a number of our suppliers, they are likely to pass the cost of their tax increase on to us in the form of higher prices. That may be particularly true for Wilco Fuel Services. Our fuel products may be taxed at both the manufacturer level and the distributor levels as well as when we sell it to our members. The 2.5% tax at each level could compound at each stage making the final Measure 97 tax cost to our customers 7.5% or higher. This makes costs for our farmers, their customers, and finally Oregon consumers higher as well.

Take a close look at Measure 97. Find more information at FactAbout97.com.

Vote NO on Measure 97.

(This information furnished by Doug Hoffman, President Wilco Farmers.)^[17]

More expensive cars, fuel, parts and insurance

Measure 97’s proposed tax on Oregon sales would hurt our customers and hit Oregon consumers in their pocketbooks.

Measure 97 is not a tax on profits, but instead is a tax on sales. Implementing a tax on sales is especially unfair to businesses with small profit margins. The average auto dealer’s profit margin is just 2.3%. Since Measure 97 proposes a 2.5% tax on sales, Oregon dealers would have little choice but to increase car prices in order to stay in business.

Measure 97 would also raise the cost of owning and operating your car. You’d see higher prices when filling your tank, buying car parts, even buying auto insurance. In fact, Measure 97’s $6 billion tax increase would drive up consumer prices for many essential goods and services we buy every day.

Former State Economist Tom Potiowsky, who led the Northwest Economic Research Council study paid for by Measure 97’s sponsors, said Measure 97's tax is “like a sales tax on steroids” (East Oregonian, 3/18/16). The Oregonian (7/27/16) revealed that when 97’s sponsors tried to pressure him into saying 97’s tax on certain corporations would not have regressive impacts on consumers, Potiowsky said: “Applying [a gross receipts tax] to a narrow group of C corporations does not make regressivity go away.”

Auto dealers and other businesses with narrow profit margins – like grocery stores, wholesalers, medical practices and farmers – would be hit especially hard by Measure 97’s tax on sales. Companies like ours would have to pay the tax whether they make a small profit, no profit or even lose money. Measure 97 would force these types of businesses to cut jobs and benefits for our employees, raise prices, or both just to stay in business, especially hurting those Oregonians who could least afford it.

Learn more at FactsAbout97.com. Please join us in voting NO.

(This information furnished by Gregory P Remensperger, EVP Oregon Automobile Dealers Association.)^[17]

Oregon is experiencing a housing boom unlike we’ve seen in decades. Demand for new housing has home builders working at a furious pace. But high prices are squeezing many people out of the market.

Measure 97 threatens to raise housing costs and decrease housing production, making the problem worse.

One costly quirk in Measure 97 is that it would tax sales, not profits, at potentially every step in the production process. There could be a tax when the timber company sells logs to a mill, which would be compounded when the mill sells finished lumber to a distributor, compounded again when a distributor sells the lumber to a builder, and yet again when a family purchases the house. Windows, doors, hardware, concrete, paint, insurance and utilities – all could also be subject to Measure 97’s “tax on a tax,” further boosting housing costs.

The Oregon Home Builders Association advocates for policies that will improve housing affordability for Oregonians. Measure 97 is in direct conflict with this effort and that’s why we’re urging a NO vote.

Measure 97 will raise prices on more than just housing. Oregonians will pay higher prices for essentials we buy every day–clothing, gas, medicine, utilities, insurance, medical care and groceries. The Legislative Revenue Office (LRO) concluded that the average working family would pay over $600 more per year due to Measure 97, and experience higher costs for large purchases like a home or a home remodeling project.

Proponents claim this is about “big out-of-state corporations.” They’re wrong. This is about small businesses, like our members, who provide thousands of jobs around Oregon. Currently our industry is growing, but jobs would be at risk under Measure 97. The LRO report and the proponents’ own economic study determined that this measure would eliminate tens of thousands of jobs in our state.

Measure 97 increases home costs and cuts jobs. Please join us in voting NO.

(This information furnished by Jon A Chandler, CEO/Oregon Home Builders Association.)^[17]

After careful study, the Oregon Retail Council urges a NO vote on Measure 97. We want our customers to know why.

Measure 97 would implement a 2.5% tax on sales, not profits. Because a retail store is a low-margin business, meaning profits are small (3% or less), a tax that takes 2.5% of every sale leaves many retailers with no profit at all. Retailers with small profits, no profits or even losses would still be forced to pay this proposed tax.

Oregon consumers will pay billions more in higher prices

The state Legislative Revenue Office estimated that two-thirds of the Measure 97 tax would ultimately be paid by consumers in Oregon in higher prices for everyday essentials – food, clothing, cars, cable, electricity, phone service, gas, insurance – even medicine and health care, costing the average Oregon family over $600 more per year.

Measure 97 is a “tax on tax”

Measure 97’s tax on sales would be added at each step in the production process. A product moving from the manufacturer, to a packaging company, to a distributor and then finally to one of our retailers could be taxed multiple times before finally reaching the consumer. This compounding “tax on a tax” would make Oregon products more expensive.

No guarantees, no accountability

Another troubling aspect of this enormous new tax is that there’s no plan or accountability for how the $6 billion would be spent. All the money goes to the General Fund and could be spent on anything legislators choose. Measure 97 is nothing short of a blank check for politicians and bureaucrats to spend any way they please.

Measure 97 is damaging to Oregon businesses and costly to Oregon consumers. It deserves a NO vote.

(This information furnished by Betsy Earls, Director, Oregon Retail Council.)^[17]

The Oregon Farm Bureau represents 7,000 Oregon farm and ranch families and 60,000 member families overall. We’re accustomed to taxes and regulations, but never have we seen a tax as unfair and damaging to Oregon agriculture as Measure 97.

Many Oregon farm families operate on very thin profit margins. Measure 97 would tax our total sales and increase costs for the electricity, equipment, and fuel it takes to produce food, even when we have a small profit or even losing money. This is simply unfair and would burden our farmers unlike any other state.

98% of Oregon farms are family owned and operated. Crops produced by farmers here are sold around the world. Measure 97’s giant tax hike would put our family farms at a competitive disadvantage.

Measure 97 isn’t just bad for Oregon family farmers. It’s harmful to all Oregonians. A study by the nonpartisan Legislative Revenue Office (LRO) revealed most of this tax would be paid by consumers in the form of higher prices on everyday items such as gasoline, medicine, utilities and even food. They estimate the cost to be $600 more per year for the average Oregon family.

The tax would be assessed at each step in the production process. By the time a product has gone from the farm to the consumer it has likely been taxed multiple times, increasing its cost. The LRO refers to Measure 97 as a “consumption tax,” like a sales tax, but without exemptions for everyday essentials.

Oregon agriculture provides over 326,000 jobs in the state. Measure 97 threatens those jobs and our family farmers. In fact, the LRO determined over 38,000 private sector jobs could disappear if this measure passes.

(This information furnished by Dave Dillon, Executive Vice President, Oregon Farm Bureau Federation.)^[17]

The Oregon Small Business Association represents approximately 8,000 Oregon small businesses. Our mission is to protect and enhance Oregon’s small business environment. But Measure 97 is the most anti-small business proposal we’ve seen in decades.

Measure 97’s tax hurts consumers, not just small businesses.

Companies cannot absorb Measure 97’s higher costs. They would be forced to pass those costs to customers. Legislative Revenue economists concluded that two-thirds of the tax would be passed to Oregonians in the form of higher prices on everyday essentials.

Despite how the ballot summary is worded, Measure 97 doesn’t actually guarantee revenues would go to schools, healthcare or anything else. Revenues would go into the General Fund. The nonpartisan Legislative Counsel has determined the legislature may spend the money however it wants. It’s a blank check for politicians and bureaucrats, with no accountability to the public.

Measure 97 impacts small, family-owned businesses more than large, national chains.

Measure 97 would make it harder for Oregon-based businesses to compete with big national chains. Big chains make, distribute and sell their own products, so those products would be subject to a single 2.5% tax. Local businesses often get products through independent manufacturers, wholesalers and distributors that would each pay the tax. Local businesses and their customers would face a tax on a tax on a tax, causing costs for some products to go up by 7.5% or more.

Measure 97 would have a stifling effect on technology startup companies.

Small startups rarely make any profit during their early years, but would still be forced to pay Measure 97’s tax on their gross sales. This puts Oregon technology startups at a competitive disadvantage against those in other startup states, such as Washington and California.

Setting state tax policy deserves thoughtful deliberation by lawmakers, not a ballot measure drafted by special interests.

Join with Oregon’s local small businesses and vote NO on Measure 97.

(This information furnished by TJ Reilly, President, Oregon Small Business Association.)^[17]

Associated Oregon Loggers (AOL) is the statewide trade association representing 1,000 member companies engaged in the harvest and sustainable forest management of Oregon’s 30 million acres of forestland.

Our organization is opposed to Measure 97.

Measure 97 would impose $6 billion in new taxes on the sales of products and services that Oregonians buy every day. It is a gross sales tax that would result in the largest tax increase in our state’s history. Because it would be a new tax on gross sales, not profits, businesses would be required to pay the tax on total revenues, regardless if they made a profit on those sales.

The new tax would be applied to many products and services including food, electricity, insurance, health care, medicine, fuel and other essential products. The proponents of the measure want voters to believe the new tax would only affect large corporations. But the fact is the ultimate costs would fall on all Oregon consumers in the form of higher prices for almost everything we buy.

Furthermore, this measure would add a new tax at every step in the production process. By the time an Oregon product goes from a manufacturer to a distributor and then to a retailer, it could be taxed multiple times before being purchased by the consumer.

For example, when a logging company sells timber to a mill, it would have to pay the 2.5% tax. The mill sells lumber to a wholesaler, and pays another 2.5% tax. The wholesaler sells the lumber to a big box store and would pay another 2.5% tax. Finally, the big box store sells the lumber to the consumer and it, too, would pay the 2.5% tax. It’s pretty easy to see who is going to pay for this new tax...Oregon consumers.

Measure 97 is a flawed policy and deserves a NO vote.

(This information furnished by Jim C Geisinger, Executive Vice President, Associated Oregon Loggers, Inc.)^[17]

THREE REASONS WHY GROCERY SHOPPERS SHOULD VOTE NO ON MEASURE 97

1) The Only Options for Grocery Stores Are To Raise Prices, Cut Jobs, or Both.

Proponents claim businesses would absorb their $6 billion tax hike but that’s simply not possible for grocery stores. The average Oregon grocery store is a high-volume business with low profit margins – often less than Measure 97’s 2.5% tax on sales. Because Measure 97 taxes sales—not profits—the tax on some grocers would wipe out their profit entirely.

2) Measure 97 Is "Like A Sales Tax On Steroids"

The Oregon Legislative Revenue Office economists concluded that 2/3 of the $6 billion tax would be passed onto Oregon families, costing an average family over $600 per year in higher prices for essentials such as food, utilities, prescriptions, clothing and insurance. Those who could least afford it—low income families, seniors on fixed income and students—would be hit the hardest by this regressive tax.

In an article by the East Oregonian on March 18, Oregon's former State Economist stated that Measure 97 would be "like a sales tax on steroids."

3) Legislative Attorneys Confirm; Measure 97 Is A Blank Check for The Legislature

Proponents claim its revenues would help fund education and healthcare but the legislature’s own attorneys say that’s not true. The new taxes would be paid into the state General Fund and Salem politicians could spend them on anything they please.

Measure 97 is deeply flawed. It would increase costs for household staples that Oregon consumers must purchase, with no guarantee about where the money would be spent.

That’s why the Northwest Grocery Association is urging a NO vote on Measure 97.

Please find out more at FactsAbout97.com and join us in voting NO.

(This information furnished by Joe Gilliam, President, Northwest Grocery Association.)^[17]

Taxing Sales Instead of Profits Would Make Oregon Unattractive for Economic Growth

Our regional economic development organizations represent large areas of Oregon and a majority of Oregon’s population. We connect employers looking to locate or grow here, and the state and local governments that provide services required for a healthy economy. We're on the frontlines with businesses every day. The boards of each of our nonprofit organizations voted unanimously to oppose Measure 97.

Measure 97 is deeply troubling. It would impose the worst kind of tax on sales that could be added at multiple steps in the production process–a “tax on a tax”–cascading into higher prices for items Oregonians buy every day, without any exemptions. Electricity, fuel, insurance, food, transportation and many other essentials would be subject to the tax – making Oregon products more expensive and Oregon companies less competitive.

Measure 97 sends a negative message to companies considering investments or expansion here, hindering business growth, job creation and the retention of existing jobs for Oregonians.

Businesses that would directly pay this new tax are heavily concentrated in retail, wholesale and utility sectors. These companies would be forced to pass along the tax to all of us, meaning Measure 97’s impacts would be felt throughout the supply chain and hit Oregon consumers hard, especially those who can least afford it.

According to the nonpartisan Legislative Revenue Office, Measure 97 would cause the loss of over 38,000 private sector jobs. To put that figure into context, according to the Oregon Employment Department, only 4,300 net new jobs were created outside the Portland area over the past decade.

Measure 97 is bad for Oregon consumers and our economy. We recommend a NO vote.

Measure 97 is strongly opposed by:

Roger Lee, Economic Development for Central Oregon

Colleen Padilla, Southern Oregon Regional Economic Development, Inc.

Chad Freeman, Strategic Economic Development Corporation

Janet LaBar, Greater Portland Inc

(This information furnished by Chad Freeman, Strategic Economic Development Corporation.)^[17]

There are many good reasons to oppose Measure 97, but my primary reason is simple:

Measure 97 hurts my patients.

The Oregon Medical Association expressed similar concerns. “The regressive nature of Measure 97 would mean that our patients, especially those with lower incomes, could face additional barriers to accessing quality care at a reasonable price. The cost of healthcare is already a great burden on families. We believe Measure 97 would compound the problem.”

I care for many senior citizens on fixed budgets. Unlike other state sales taxes, Measure 97 has no exemption for the basics of life – medicine, utilities or food. I am concerned for the health of my most vulnerable patients if they have to choose between which of these they can afford. Because it is a regressive tax, it hurts the working poor and those families still struggling in this economy the most.

The non-partisan Legislative Revenue Office (LRO) points out that Measure 97 would increase the cost of health care statewide by nearly a hundred million dollars per year–resulting in higher prescription costs and insurance rates at a time when they are already too high.

There is no logic to this tax. It's the only tax that I'm aware of where the state actually makes money when you are sick and require medications AND when you take your standard medications to stay well. That's just wrong. Don’t punish Oregonians for taking care of their health.

I fully support funding healthcare and senior services, but under Measure 97 these funds could be spent any way the Legislature wants. I cannot and will not support a tax policy with no guarantee and no plan for where the money goes. My patients deserve assurances, not empty promises.

Measure 97 would hurt my patients and all Oregonians. Please join me and thousands of my medical colleagues in voting NO on Measure 97.

(This information furnished by Dr. Colin Cave, Past President, Oregon Medical Association.)^[17]

Oregon Fruit Products is a Salem-based, family-owned business. For over 80 years we’ve been bringing “fruit to life.” You can find our products in grocery stores and restaurants across the nation and our fruit purees are used by brewers throughout the US in the craft beer industry. We understand the importance of agriculture to our state and are committed to innovation within the food and beverage industry, which helps us to do our part to grow Oregon’s economy.

That commitment is why we adamantly oppose Measure 97. While this change in tax policy does not directly impact us, it will hit our employees, our company and all Oregonians in one way or another.

There’s no such thing as free money, even though that’s what the proponents want us to believe. The independent Legislative Revenue Office determined that Oregonians will bear the brunt of two-thirds of this $6 billion tax—in the form of higher prices on goods and services.

The hidden sales tax in Measure 97 is where the most damage is done to Oregonians, not out-of-state corporations. Everything such as utilities, food, gasoline, insurance, and even medicine will be taxed. Many of the folks who can least afford to have more taken out of their pockets will be hit the hardest.

Measure 97 also puts job growth at risk. Two studies concluded that tens of thousands of jobs would be lost under Measure 97. That’s bad for small businesses and the state’s economy. We want to be around another 80 years but this tax will impact our ability to remain competitive and thus impact the future of our company and jobs.

The proponents want you to believe there’s a guarantee for how the money would be spent. The Legislature’s own independent Legislative Counsel said that isn’t true and confirmed that the legislature may spend the revenue “in any way it chooses.”

Vote NO on Measure 97.

(This information furnished by Chris L Sarles, President/CEO Oregon Fruit Products.)^[17]

Despite what you’ve heard, Measure 97 isn’t about helping Oregon’s working families or holding big corporations accountable. It’s a taxpayer-funded Christmas present for our state’s most insatiable special interests using your money.

Measure 97 was created, funded by, and exists purely to benefit the state’s government employee unions by hiring thousands more public-sector workers – nearly all of whom will be forced to hand over a sizeable portion of their paycheck each month to a labor union.

Why else would 100 percent of the funding for the “Yes on 97” campaign come from one group – government employee unions?

Because if Measure 97 passes, already-wealthy government unions stand to collect an additional $8.9 million annually.

And make no mistake, you’ll be paying for it through higher taxes and increased costs on the goods you buy.

Measure 97 is a union membership drive that would replace thousands of private-sector jobs – the kind that actually generate new revenue for the state’s economy – by expanding Oregon’s already bloated bureaucracy, resulting in more regulations and higher taxes for everyone.

Numerous nonpartisan studies have projected Measure 97 would devastate Oregon’s stagnant economy by forcing employers to either lay off workers or leave the state altogether.

The unions don’t care. All they see are dollar signs.

For more information, visit www.freedomfoundation.com.

(This information furnished by Anne Marie Gurney, Oregon Director, Freedom Foundation.)^[17]

I earned a doctorate in economics focused on public finance. Measure 97 would damage Oregon’s economy and shift its heaviest burden to those Oregon consumers least able to pay the higher costs it would create.

Who would pay the tax? According to the Oregon Office of Economic Analysis study reported in The Oregonian (6/8/16), about one in four C Corporations that would be directly taxed by Measure 97 are headquartered in Oregon. Economists in the Legislative Revenue Office estimated that 2/3 of the tax would end up being paid by Oregon consumers through higher prices for goods and services such as groceries, gas, utilities, medicine, insurance and health care. Legislative Revenue Officer Paul Warner told House Revenue Committee members: “About two-thirds of that tax ends up in the form of higher prices.” (5/23/16)

What’s wrong with the tax? Measure 97 is a so-called “gross receipts tax” or “GRT.” GRTs like Measure 97 tax sales, not profits. Companies with small profits and even those losing money still have to pay the tax. Only five states have GRTs, and Measure 97’s tax rate would be the highest by far.

Another major problem with GRTs is pyramiding, meaning the tax is imposed at multiple levels in the supply chain. A product may have been taxed multiple times before finally reaching the consumer.

Finally, GRTs like Measure 97 are regressive, meaning the burden is greater on lower income households than upper income households.

Where would new revenues go? The short answer is, no one knows. Despite how the ballot summary is worded, Measure 97 does not actually guarantee where new revenues would be spent. Revenues would go to the General Fund and, according to the nonpartisan Legislative Counsel, legislators could spend the money however they want. There is no plan and no accountability for how revenues would be used.

Measure 97 is flawed tax policy. I recommend a NO vote.

(This information furnished by Gerard Mildner, Economist and Professor, Portland, Oregon.)^[17]

For more than 75 years, members of the Oregon Trucking Association have been bringing products to businesses in Oregon. We’re committed to keeping stores stocked and ready for Oregon consumers. We pride ourselves on being an integral part of our economy and serving all Oregonians.

Our association is strongly opposed to Measure 97’s reckless tax. Proponents repeatedly claim that it’s aimed at large, out-of-state corporations.

They’re wrong.

Measure 97 impacts all businesses in Oregon, large and small. In fact, Measure 97 is far more damaging for small businesses than for large companies. Measure 97 would make it even harder for Oregon-based businesses to compete with the big national chains.

Big chains make, distribute and sell their own products, so those products would be subject to a single 2.5% tax. Local businesses often get products through independent manufacturers, wholesalers and distributors who would each pay the 2.5% tax. Local businesses and their customers would face a tax on a tax on a tax, causing costs for some products to go up by 7.5% percent or even more.

This explains why our state’s economists refer to Measure 97 as a “consumption tax.” This measure does not tax profits, it taxes sales, and it will end up being paid by Oregon consumers through higher prices on nearly everything we buy, costing the average household over $600 each and every year.

It could easily be referred to as a “stealth sales tax.” Measure 97 would make it more expensive to deliver products to Oregon’s family farms, small businesses, and local shops – a price you pay at the checkout line. This is in large part due to the increased taxes on fuel, which drives up our costs significantly.

Measure 97 isn’t about large, out-of-state corporations. It hits small businesses and consumers in a way that we have never seen in our state.

Please join us in voting NO.

(This information furnished by Jana Jarvis, President Oregon Trucking Associations.)^[17]