State Budgets
Budget shortfalls, city defaults & bankruptcies, potential state bankruptcies means the budgets of individual states will impact the economies of the other states and the federal budget/deficit.

Oregon Voters Asked to Boost Corporate Tax Rate

from The Wall Street Journal,

Funds needed to help schools, backers say; opponents say it will discourage investment in state.

Tax increases are anathema to most voters in Oregon, judging by their rejecting attempts to impose a sales tax nine times since the 1930s. But backers of a ballot proposition say there is momentum behind an effort to boost taxes on gross receipts of large businesses from .01% to 2.5%, which would make it the highest in the country. The measure would provide $3 billion a year in additional funds—boosting the state’s general fund by roughly a third—to help pay for the state’s struggling school system, as well as health-care and senior-services programs. “I think we have a very powerful case to make,” said Ben Unger, executive director of Our Oregon, which is campaigning for the tax hike and has support from public unions in the state as well as Democratic Gov. Kate Brown. Cuts to education, in particular, have resulted in Oregon having some of the highest classroom sizes in the nation with one of the shortest school years, proponents of the measures say. The state has one of the lowest high school graduation rates in the country, according to new figures released by the White House this month. Oregon’s corporate tax burden, meanwhile, is tied with Connecticut for lowest in the country, when comparing state and local taxes. Companies with Oregon sales of more than $25 million that are registered as ‘C’ corporations—those taxed separately from their owners—would pay the new rate if the measure passes. It would join five other states in imposing such a tax, according to the Tax Foundation, a nonprofit think tank in Washington. Oregon business groups have raised at least $22 million so far as part of a campaign to convince voters the higher corporate tax under what is known as Measure 97 would cause prices on consumer goods and services to rise while discouraging companies from investing in the state.

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