Last week voters in Oregon approved two ballot measures that amount to a $700 million tax hike. While the decision to increase taxes was made via popular vote, the burden for generating new tax revenue will fall primarily on Oregon's businesses and business owners.
The two ballot measures, 66 and 67, were both very targeted. Measure 66 raises income taxes by 2% on individuals earning more than $125,000 a year and on couples whose income exceeds $250,000. Measure 67 raises taxes on businesses, including a rise in the corporate minimum tax.
The statewide campaign to approve this tax hike was largely funded by public employee unions who outspent a coalition of chambers, trade associations and tax advocates by more than $2 million. Television and radio advertising supporting the taxes played heavily class themes to win 54% support.
Support for this kind of tax hike plays off growing populist sentiment and is fanned by anger at Wall Street. Other states could face similar tax proposals, particularly as the reality of budget deficits set in.
To read more about Oregon Measures 66 and 67 check out these two articles:
- Wall Street Journal - Taxpayer Ambush in Oregon
- New York Times - Voters in Oregon Approve Tax Increases
Click for info the coalition opposing the tax hike - Oregonians Against Job-Killing Taxes
Hey Folks,
What happened in Oregon in the way of increases corporate minimum taxes and retroactive taxes for 2009 is a perfect example of how much power and influence union dollars can have when concentrated on a particular state vote.
Do not be surprised if measures like this "come to a state near you" soon as we continue to be challenged with apathy regarding public policy issues but also a lack of understanding when it comes to the importance of the free market system and the employers that fuel local economies throughout the nation.
Keep up the fight out there -- even with this vote, we'll be working hard in Oregon.
Jason Brandt
Director of Public Affairs
Salem Area Chamber of Commerce
Posted by: Jason Brandt | 02/04/2010 at 06:17 PM