By Taxpayers Association of Oregon
Another famous Oregon business has been wrecked by the Corporate Activities Tax (CAT tax) and the rise in crime.
Margulis Jewelers has withstood The Great Depression, WWII, a few recessions, and pandemic for more than 90 years as one of Oregon’s most famous jewelers. Now it is running several days of two page ads announcing their closure and not afraid to criticize the problems that led to their downfall in the actual ads.
Here is what they said in the ad, “Yes, the pandemic contributed to the problem but other ongoing issues set the stage. An unresolved homeless crisis, issues of public safety and public health, neighborhood crime, vandalism, and nighttime lawlessness — people want no part of it. Customers are reluctant to come downtown to shop. Employers choose not to work downtown. And what’s worse, no one is home at City Hall to help downtown. Until now, going out of business had not been a consideration….The closing of Margulis Jewelry marks the end of an era — one when a day shopping in Downtown Portland was truly an excursion to be enjoyed.”
Portland’s crime spree, caused by liberal judges, politicians and prosecutors, is slowly destroying Downtown business by business.
Here is a photo of a coffee shop across the street from Margulis Jewelers that was vandalized three times in just 50 days last year (photo credit: Taxpayers Association of Oregon).
Do not think that the CAT tax had nothing to do with it.
You see the CAT tax is a tax on revenue (not profits) so it hits businesses when they are not making a profit. Like during a pandemic or when riots are going on — the heartless CAT tax keeps on taxing during these times. Also, the CAT tax is very hard on jewelry and precious metal businesses as they have high revenue, because their product is so expensive, but their profit margins can be small. Competition from other stores and online sales keep profit margins limited for these businesses. The CAT tax only sees high revenue, and not small profits, and therefore it slams these businesses regardless of financial health.
Just as Marigulis Jewelers did a full page ad in the Oregonians, so did Bi-Mart which announced their pharmacies closing due, in part, to Oregon’s CAT tax. Don’t take my word for it, read how Bi-Mart explained it in their closing announcement ad. (look in middle of ad)
Remember, Intel just skipped on building a $20 billion dollar plant in Oregon. While Ohio has been cutting their taxes, Oregon has been raising their taxes (CAT Tax, gas tax by 10-cents, paid leave payroll tax, transit payroll tax, 17% Small Business Tax, Governor’s Brown Executive Order Carbon Tax, etc…).
Both runaway crime and the CAT tax are a scourge upon our state as they are destroying businesses.
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