The Kicker-Corporate minimum bill is bad for Oregon
Seven Reasons to vote NO on HB 2707-B
1. HB 2707-B is a double tax increase: HB 2707-B takes much of the business tax kicker refund and raises the corporate minimum tax. The advantages of the estate tax savings portion are lost in the enormity of the two tax increases.
2. Voters have TWICE affirmed Oregon’s Kicker Policy. Both times voters supported the kicker by over 60%.
3. Raising the corporate minimum is a 100% increase in business taxes. It may sound nice to say that it is only an increase from $10 to $20 for Oregon’s smallest businesses, but that is not the whole story. This tax is a 100% increase! This is what businesses will perceive it to be and it will not be well received by Oregon businesses that already feel over-taxed.
4. The economy is slowing. Taking the business kicker and raising taxes will only further damage our economy and broadcast an anti-business, pro-tax message to business owners. (“An index of Oregon’s economic future showed weakness in November in nearly all the areas it tracks.” Statesman Journal 1-13-07.) Let businesses use their kicker to expand the economy not hurt it.
5. The State budget is already growing 14% without new taxes! If the state wants to create a rainy day fund it should do it with existing revenue. Without any new taxes, the budget will grow 14%.
6. There is a reason why the liberals do not want to send this measure to voters. There is a genuine risk that the measure may fail. Also, there are already too many other tax increase related bills, like the double majority, that they plan to refer to voters. The liberals do not want to have only their fingerprints on a long slate of tax measures on the ballot.
7. A full 68% of Oregonians say government is spending too much. A Moore Information Feb 2007 poll showed that 68% of Oregonians say that state government has enough money.