CRONY STATUS QUO: $1 billion-dollar tax hike is an assault on Oregon’s mom-and-pop businesses
PORTLAND, Ore.—Gov. Kate Brown is likely going to rob a billion-dollars from the smallest of small businesses here in Oregon. As the Bend Bulletin put it, “if you are a surrealism fan, it would be astonishing for a governor who has declared so forthrightly that she wants to give small businesses tools to expand to aim to take $1 billion away from small businesses.” Not only is this tax hike a staggering $1 billion, it is illegal, it violates the Constitution. “The bill obviously raises revenue,” the Bulletin explained in their editorial piece on the tax. Under Oregon law bills that raise revenue are one, required to originate in the House, which Senate Bill 1528 did not, and two, must pass both chambers with a three-fifths majority, which SB 1528 did not.
Republican gubernatorial candidate retired Navy Capt. Greg Wooldridge released the following statement:
“The small business tax hike will do nothing more than stall our state's economic engine, while special interests reap the benefits of political cronyism. With over 80 percent of all working Oregonians being employed by or owning a small business, the governor's priority should be expanding their opportunity and not leading the resistance. Signing an inequitable tax plan in order for the governor to spite the Trump tax plan is wrong for small business and wrong for Oregon. Leadership requires taking a stand, something this governor refuses to do. As Oregon's next governor I will lead by proactively rewarding the entrepreneurial spirit that is our Oregon.”
Senate Bill 1528 is controversial and creates a rock and a hard place situation for the governor. If the governor vetoes SB 1528, she will in effect be siding with President Trump’s tax plan providing tax relief for many Oregon small businesses.
However, if the governor signs SB 1528, she will be siding with the union-political complex and will foist a billion-dollar tax on the smallest businesses that make our state great.
“In its own income-tax code,” Oregon Public Broadcasting’s Jeff Mapes wrote, “Oregon automatically adopts many federal definitions of income. And one of the biggest impacts of the new federal law is that it would deliver an automatic tax cut for many of the more than 400,000 business owners who pay personal income taxes on their profits. That would cost Oregon more than $200 million a year in lost income.”
The Taxpayer Association of Oregon explained SB 1528 was “secretive and ram-rodded,” and that it was “voted out of Committee...with limited information to the public, making it one of the most secretive and pig-pilled bills in recent memory.”
“It is time to end the tax and spend. It is time for the people to demand accountability and not continue the failed status quo policies that have run our schools into the ground and wasted hundreds of millions of taxpayer dollars.”