Measure 26-214: A 3% income tax to fund preschool?

Taxpayers Association of Oregon

Problem #1: If you offer something for free, expect an overload

If you offer something for free, like free preschool, then people will take advantage of it.  People who don’t need it will use it and people who live outside the area will move here to take advantage of it and drive up the program costs.

Don’t believe me?   Oregon offered welfare benefits more generous than other states and then (surprise!) we became tied for the #1 welfare state in the nation.  Oregon offered homeless benefits more generous than other states and then (surprise!) we became the nation #2 state for un-sheltered homeless (Willamette Week 12-17-2018).

Problem #2: Starbucks won’t pay it, but family-owned coffee shops will

Because #26-214 is a 3.8% tax on income, it won’t apply to corporations, instead hitting family owned small businesses (coffee shops) who don’t pay corporate taxes but pay personal income taxes on their business revenue since they own the business.

Problem #3. This increases taxes by nearly 25%

#26-24 adds as much as 3.8% tax rate to Oregon’s state 9.9% rate which is nearly a 25% tax rate on your income.

Problem #4. Makes Oregon among the highest tax rates in America

Oregon already leads the nation with a top 9.9% income tax rate and adding 3.8% would make Oregon among the highest top income tax rate states in America.

Problem #5.  Users increase.  Taxpayers decrease.

Having one of the nation’s highest income taxes will cause higher income taxpayers to leave while migration of out-of-area people arrive to take advantage of the free program driving up costs.

Taxpayer Association of Oregon urges
No on #26-214

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