By Taxpayers Association of Oregon
Bi-Mart, an Oregon headquartered company, put out a full page ad in the Sunday Oregonian last week, announcing that they are closing all of their Oregon pharmacies. They list three reasons why they are closing them down with reason number #3 being “The Oregon Corporate Activities Tax takes even more, taxing us on receipts rather than just profits”.
This is exactly what the Taxpayers Association warned politicians would happen. When you tax receipts revenue (as opposed to profits like most taxes) you will be taxing many companies when they are not making a profit. You will be taxing them when they are hurting like when a recession hits or during trade wars or…you guessed it…. a pandemic hits.
This is why so few states dare to tax receipts revenue (also known as gross receipts) because it is so cruel and punishing to businesses.
See Bi-Mart newspaper ad below:
As we stated earlier this year, the Oregon Corporate Activities Tax (CAT) is one reason why our manufacturing has declined twice as much as the national average.
This is downright painful, shameful and destructive.