Democrat’s tax plans target Oregon small and family owned businesses
By Oregon Senate Republicans,
Salem, OR —Democrats in the Oregon House of Representatives announced plans last Thursday to pay for spending increases by raising taxes on Oregon small and family owned businesses. The plan to create a new tax bracket of 11% on filings greater than $125,000 targets Oregon LLCs, sole proprietorships, partnerships and s-corps, the typical organizational structure of Oregon small businesses. You can watch Senator Larry George explain the issue on the Senate floor here: http://www.youtube.com/watch?v=neo1p0et-HA.
“This is nothing more than an attempt force small businesses to pay for years of unsustainable spending while mega corporations and public employee unions who fund the Democrat campaign machines are let off the hook,” said Senator Larry George (R-Sherwood). “Under the House Democrat plan, an Oregon family business will pay nearly 50% more state income taxes than a big out-of-state corporation selling the same product.”
According to state officials, more than 75% of the 31,000 Oregonians who claimed taxable income of $125,000 or more last year were owners of small and family owned businesses. Small and family business owners invest their incomes back into their business by purchasing equipment, expanding operations and hiring new employees. This plan would put them at a huge disadvantage.
While owners of LLCs, sole proprietorships, partnerships and s-corps will face an 11% tax rate, C-corporations will enjoy a significant competitive advantage with a new rate of 7%. The Democrats “fair” tax proposal asks small business owners to pay the highest rate possible in Oregon, while large corporations enjoy a rate lower then the rate Oregon’s average income earner pays.
“Corporations and unions have been contributing massive amounts of money to Democrat campaigns over the last few cycles, and it looks like their investment is going to pay off,” said George. “Unfortunately, it is Oregon’s economy and the hundreds of thousands that can’t find work who are going to continue to pay the price for this irresponsible tax policy.”
According to the Small Business Association, small businesses employ more than half of all private sector employees. Small businesses have generated 60 to 80 percent of new jobs annually over the past decade.
“This type of tax increase just pours fuel on the fire of unemployment,” said George. “There are few things you could do that are this devastating to a state with more then 260,000 citizens who can’t find work. If someone was thinking about locating or starting a business in Oregon, they are going to think twice now. We obviously don’t want them.”