Gov. Brown pledges to tax small businesses with no customers

Taxpayers Association of Oregon

Oregon Governor Kate Brown has decided not to delay the largest tax in Oregon history from going into effect with first payments due April 30th.

Because the Corporate Activities Tax (Business sales tax) taxes revenue instead of profits, Governor Kate Brown will be taxing businesses that are seeing 100% drop in profits. She will be taxing small business with no customers and no profits.

Governor Kate Brown says,

“Preserving the Corporate Activities Tax is one of the best ways to do that, and to help protect small businesses and middle class taxpayers.”

Governor Brown is clearly saying that the way to protect small business is to tax small business!

That makes no sense.

Even the media backs a delay in this massive new tax;

“Given the problems Oregon businesses are facing now, lawmakers should delay the CAT across the board. Yes, schools need the money, but they don’t need it immediately. A delay would give business a badly needed break and give the state time to get the CAT right the first time.”

The tax is not only massive it is also bureaucratically unique to other taxes in the nation which has created a storm of confusion over who pays and how much. Weeks before taxes were due, the Department of Revenue was still rushing out a dozen new rules on the tax.  The Department of Revenue had to cancel statewide meetings to educate businesses on the tax due to coronavirus — which just shows that even the state is hampered by this virus but businesses is expected to show no reprieve.

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