Will this lead to higher prices?

We don’t think so, but the giant corporations will threaten that just like they did when we were raising the minimum wage in Oregon a few years ago. But, in reality, prices didn’t go up then and they won’t go up because of Measure 118. 

What makes prices go up is mostly corporate greed, as we’ve seen recently with “greedflation.” Let’s call this thinly veiled threat what it is: Bullying behavior. And how do we deal with bullies? Do we just roll over? No, not in Oregon.

The truth is that the increase to the minimum corporate tax rate after $25 million just balances the playing field between (1) the taxes giant corporations pay in Oregon and the other states, and (2) between giant corporations and local small businesses in Oregon. If giant corporations carry out the threat to continue to raise our prices, let’s just take our $1,600 and buy local. 

What about other important needs?

Measure 118 reducing child poverty by half and overall poverty by about a third, ect are all good things. How are we to choose between competing “good things” (public education, environment, safety, etc.)? We deserve, and should get, more than just one good thing! 

The Oregon Rebate is designed as a complementary tool to existing public services, not a replacement, and is intended to be revenue neutral to the state. This policy reflects a belief in the dignity and decision-making ability of Oregonians, trusting them to use the funds in ways that best suit their individual needs and circumstances. By strengthening individuals and families financially, the rebate aims to create stronger communities and potentially improve funding for state programs through a bolstered local economy.

Isn’t Oregon a “high-tax” state already?

The truth is that Oregon is only a high-tax state for people (currently 4.75-9.9%), not giant corporations (currently less than 0.12%). 

Measure 118 starts to fix that, and one way to think about Measure 118 is a shift from people paying most of the taxes to corporations paying more. In effect, giant corporations like Comcast are going to be paying our taxes! 

For example, the Legislative Revenue Office (LRO) estimates that Oregoninas making less than $40,000 per year will effectively pay zero in state taxes if they apply their rebate to their tax liabilities. According to the LRO, Measure 118 effectively provides a $2,100 tax break for every tax filer! Measure 118 creates a more equitable tax system by putting money back into the pockets of hardworking Oregonians and addressing the imbalance between individual and corporate tax burdens.

Will raising taxes on corporations drive businesses and jobs out of the state”

Absolutely not if done like Measure 118 because the increased corporate tax revenue is rebated to the people of Oregon, who will spend it in our communities and boost the economy! 

(In economic theory, this is called “supply-side” economics, and it’s the opposite of demand-side economics or “Reaganomics/trickle down economics”.) 

The proposed tax increase applies to giant corporations after making over $25 million in revenue within Oregon, regardless of the location of their  headquarters, which eliminates incentives for businesses to relocate. 

Importantly, Measure 118:

1. Balances the playing field between the giant corporations that are barely paying any taxes in Oregon and our local small and medium-sized businesses that pay (mostly) pass-through taxes, and

2. The rebates will benefit all businesses, large and small, by increasing consumer spending power. This is what happens with similar programs in Alaska (Permanent Fund Dividend) where businesses compete for the influx of cash by holding sales and promotions when the dividends are paid out and in Idaho (Grocery Credit)..

Should Oregonians trust ballot initiatives funded with out-of-state money?

The truth is that because Oregon is a small state, both ballot initiatives and candidates often receive out-of-state funding. 

Importantly, Measure 118 started as the Oregon Rebate in 2018 as an all-volunteer effort by a diverse group of everyday Oregonians, including students, retirees, and individuals from various economic backgrounds and political views. 

This grassroots initiative has remained virtually unchanged since its inception, maintaining its original intent and language. To see our earlier ballot initiatives have not significantly changed from what is now Measure 118, please search for (rebate) to find IP 2020-29, IP 2020-51, IP 2022-06, IP 2024-15, and finally IP 2024-17. Financial transparency available through ORESTAR campaign reporting. 

Why should billionaires like Phil Knight get a rebate check?

Universal programs like the Oregon Rebate avoid the high administrative costs, errors, and delays often associated with means-tested programs. This approach ensures fair and easier access for all Oregonians, regardless of income fluctuations. While wealthy individuals like Phil Knight would technically receive the rebate, their vast financial resources mean they're unlikely to significantly benefit from or be impacted by it, maintaining the policy's focus on helping the broader population.

I hear this will impact schools and the general fund? 

General fund dollars do not fund Measure 118. All implementation and related costs are paid for by the new revenue. Oregon's lawmakers will implement and have the flexibility to adjust, so they will have the power to address any budget-impacting concerns. Additionally, a $7 billion stimulus will booth Oregon’s economy, which will lead to additional tax receipts and General Fund resources.