USW International 
MYPCCLC
Oregon AFL-CIO
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Submitted by Joe on January 21, 2010 - 12:56pm.
At Tuesday's General Meeting our members voted unanimously to support Ballot Measures 66 and 67.
*On 66, currently the lowest-income Oregonians pay 8.7% of their total income in state and local taxes. Joint filers with taxable incomes between $250,000 and $500,000 pay approximately 7% of their total income in taxes. The wealthiest 1% of households with incomes averaging over $1 million pay only 6.1% of their total income in taxes. Oregon’s income tax has many loopholes that mostly benefit wealthy taxpayers. Other states collect sales tax and have an income tax with few loopholes or deductions, so they can collect more money with lower rates.
A couple making $260,000 in taxable income will pay an extra $180 (1.8% of the taxable income above $250,000). Is it a sacrifice to ask a couple who earns almost $20,700 in a MONTH (or $28.75 every single hour) , to invest just $15/month (or $.02 every single hour) more in the Oregon economy.
*Now under 67, only C-Corps above $250,000 in profits pay an extra 1.3%. Some may assume that 67 may just be some type of hidden sales tax of 1.3%. But consider this, were talking about 2.5% of only C-Corps who may or may not pass this on. But the likely scenario is they will pass it on nationally or globally. Will Nike raise its products 1.3% in Oregon only, do they lower the price of shoes when they get a tax break? The answers are not likely and NO.
•Partnerships, LLCs, LLPs, and S-corps – the corporate forms of most small businesses – will only pay a flat $150 corporate minimum, regardless of income or profit.
•Sole Proprietorship will continue to pay $0 in Oregon business taxes.(mom and pop)
•For C corporations, the corporate minimum income tax will be about one-tenth of one percent of total sales inside Oregon. Small businesses with sales less than $500,000 will also pay just $150. It is important to note that C-Corporations will pay either the new minimum or the profits tax, never both.
Example of new minimum - If a C-Corp falls into the over $500,000 in revenues in Oregon and no profit category you pay one tenth of 1% of all revenues. What does that look like? I am glad you asked.
1/10th of 1% or,
1/10th of .01 or,
.001 so...
.001 X $500,000 (revenues) = $???
Currently C-Corps without profits would be paying $10. But after 67 passes this example would pay...
$??? = $500
Example of new minimum -
Less than $500,000 (revenues) = $150
How many business's would go under with this burden? Yes, goose egg, no one. If they did, they would have a bizarre case to be made of business practices 101. They could put out a manual on how to put a business in a ditch.
After 2012 that "sales inside Oregon" amount of $500,000 moves to a sliver, or tiny fraction of the already tiny fraction of C-Corps under this measure, with revenues above $10,000,000.
Oregon will continue to have the lowest corporate taxes on the West Coast. Oregon is the 3rd business friendly, tax structure wise, and would slip to 5th.
Also reduces the taxes for 270,000 Oregonians by exempting the first $2400 of 2009 unemployment benefits.
other links:
Impact of Measure 66 and Measure 67 on Yamhill County
Hibbitts poll shows tax supporters in driver's seat
Experts Debunk Claim That Tax Measures Would Cost Jobs
Which Oregonians pay more under Measure 66
