Companies warn Oregon: Tax us and we might move

– Jeff Mapes, The Oregonian/OregonLive

John North, the vice president of finance for Ashland-based Lithia Motors, said the auto retailer would see almost all its profits from Oregon stores wiped out under a tax measure headed toward the November 2016 ballot….

Oregon’s business community is ratcheting up its rhetoric against the union-backed corporate tax measure that would raise an estimated $2.6 billion a year for schools and other services, far more than any tax hike in modern Oregon history…

“We have this burgeoning software business in Oregon that I think would be significantly affected,” said Ken Thrasher, a former Fred Meyer CEO and board chairman of Portland-based Compli.  “We run the risk of these jobs being located somewhere else where we don’t have to pay the tax.”…

… Our Oregon has assembled a coalition – ranging from teacher unions to a small-business group that frequently supports left-of-center causes – and is working to gather the 88,184 signatures needed by July 8 to qualify for the ballot…

… because of a long-standing provision in Oregon tax laws, companies that mostly provide services would pay the tax based on their worldwide sales…

We Respond & Your Comments

There’s an iron law of economics: “If you want more of something, subsidize it. If you want less, tax it.” So if Oregonians want fewer businesses in Oregon they’ll pass this tax.

We know the tax is “for the children” and that we don’t spend enough on education. But we all know who it’s really for – the teachers’ unions. That’s why they support it.

We also know taxes inevitably rake in less money than predicted. That’s because the predictors assume everyone who might pay it will do so. Jacking up the estimate makes the tax more attractive.

But people aren’t stupid. They find ways to avoid paying taxes. In this case they’ll avoid it by voting with their feet and moving to another state – probably one that doesn’t:

• have a 9.9% personal income tax;
• treat capital gains as ordinary income;
• reach into your coffin to grab a big chunk of your wealth when you die.

To all Oregonians who want fewer businesses and jobs: go ahead and sign onto Our Oregon’s latest brainstorm.

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