Brown endorses gross receipts tax
Initiative Petition 28, on track to be called Measure 97 on the ballot, levies a 2.5 percent tax on certain corporations’ Oregon gross receipts exceeding $25 million.
“I have spent my career fighting to make Oregon a place where everyone can thrive, Brown said in a statement. “I support Measure 97 because there is a basic unfairness in our tax system that makes working families pay an increasing share for state and local services, including public schools, senior services, and health care. By some measures, Oregon is among the lowest in corporate taxes, and Oregon ians expect everyone to pay their fair share.”
The tax would pour an estimated $3 billion a year into state coffers but slow job growth and bump up consumer prices, according to the nonpartisan Legislative Revenue Office.
“Our state cannot move forward and meet Oregon’s growing needs over the next decade without a stable revenue base,” Brown said Thursday. “Measure 97 is an important step forward, and I will make sure the funds the measure yields go towards schools, health care, and seniors, as the voters expect.
“State leaders before me have repeatedly tried and failed to solve the problem of adequate and stable funding for schools and other state services. Every solution has had strengths and weaknesses in terms of fairness and economic impact. None has succeeded in bringing the business community, individual and family taxpayers, service providers, and advocates together.”
Many of the public employee unions backing the measure also support Brown’s election.
Bud Pierce, Brown’s Republican challenger in November’s governor’s race, said he was disappointed that Brown is supporting what would be the largest sales tax increase in Oregon’s history.
“If passed, this tax increase would greatly raise the cost of living in Oregon,” Pierce said in a statement. “Everyone, including low-income families would be paying on average more than $1,800 (sic) per family more for goods and services. A tax increase like this will not help anyone. It will hurt low-income families in Oregon the most.”
The Legislative Revenue Office estimated that the tax would cause price increases that would cost a family earning median income more than $600 more per year in the form of increased prices on daily needs, such as food, fuel and electricity.Brown said that state leaders have repeatedly failed to come up with another solution to Oregon’s unstable funding system for schools and other state services.
“Every solution has had strengths and weaknesses in terms of fairness and economic impact,” she said.