IP 28 will result in over 20,000 lost Oregon jobs, higher prices


Oregon Senate Republicans

IP28’s Regressive Tax Would Have Devastating Effect on Oregon’s Economy

Salem, Ore. – Yesterday, the Oregon Senate Interim Committee on Finance and Revenue heard a report on the potential effects of Initiative Petition 28, a ballot measure to implement a 2.5 percent gross receipts tax on sales of consumer items in Oregon.

The nonpartisan Legislative Revenue Office estimates that it will be a highly regressive $6.1 billion tax increase that will cost middle class families $500 to $868 per year and eliminate 20,400 jobs. This is the first in-depth report lawmakers have received on the likely outcome of the passage of IP 28 in November.

Supporters of the measure submitted what is expected to be a sufficient number of qualifying signatures last week.

“The special interest groups driving IP 28 claim to care about education funding,” said Senate Republican Leader Ted Ferrioli (R-John Day), “but this tax on sales could have a devastating effect on Oregon’s economy, resulting in 20,400 jobs lost and a steep increase in consumer prices that will cost middle class families as much as $868 per year. By taxing Oregon sales at every step, from the manufacturer to the wholesaler to the retailer, Oregon families could see prices on necessities like medicine, groceries and electricity rise by as much as 7.5 percent. Low-income and rural families and seniors living on fixed incomes will be hurt the most. This is not the solution to funding education in Oregon.”

Our Oregon, the special interest group sponsoring the initiative, claims the estimated $6.1 billion in biannual revenue will fund K-12 education in Oregon, though the legislature will not be legally bound to allocate new revenue to education. Currently, Democrats in Salem are only allocating 10% of the total budget to education.

A January 2013 Oregonian article described Our Oregon as “a Portland-based nonprofit formed in 2005 and overseen for several years by the [public employee unions] SEIU and the OEA”

  • Jack Lord God

    The best strategy to combat this tax is to make the public perceive it for what it is, a de facto sales tax. Refer to it as a sales tax, a hidden sales tax or what have you, but link it to that and there will be success.

    • Fleas, Recuse’m

      “Oregon-ized” gliberal governmentium resembling Jabba the Hutt, sic, [literally/viscerally], assets like a HULLuva mess atop mega stool props and/or stump-age in dry-dock; butt barely above water.

      Now is primal time to pinch the loaves of ill breads yeast infectious by taking their COLA’s away, revamp their silk PERS’s to private sector nears – and, by all means cull all DEMwitted venues and other usurious taxes back under the dark assuages their irrational libtard’s shrug.

  • Myke

    This wouldn’t be a bad deal…if you got rid of the state income tax.

  • Ron Swaren

    No doubt their cronies have some big-ticket items they are planning for. But let’s not think that just opening up a new revenue stream would actually ease the pressure on taxpayers, currently through other means. Oh no….they will just use this to expand their progressive Super State vision.

    Here in Multnomah County our current board of commissioners hasn’t found a project they don’t like. We formerly had things like bridge upgrades for 10-20 million dollars. Now we are up to $300 million. I just went to a hearing yesterday for the City of Portland to approve changes to their beloved building height limit, so that MultCo can build their $300 million courthouse. They have more projects like this up their sleeves. Of course this feeds back to their political contributors. I also went to the SW Corridor transit project hearing about two weeks ago. Unfortunately, there is no more open discussion of a transit system that we could actually afford. We are back to the money wasting MAX system—-forget practical buses.

    So even if they got this gross receipts tax through, it wouldn’t lead to any lessening of the burden of other fees and charges and taxes they would come up with. Multnomah County officials were down at the statehouse this last February looking for another sources of funding—-so you will soon be finding added charges for traffic tickets and parking fines coming to your county, also. Basically they are just looking for more money for their political machine.