First-of-its-Kind Oregon Rebate Officially Qualifies for the November Ballot as Measure 118
Measure 118 will rebate $1,600 to Oregonians each year, provide economic security & slash poverty rates to historic lows
PORTLAND – The Oregon Rebate, an initiative designed to rebate $1,600 to every Oregonian each year, has met the signature certification requirement by the Oregon Secretary of State and will appear on the general election ballot as Measure 118. This marks the first time a statewide measure on universal basic income will go before voters in nearly 50 years and, if passed, would be the second such state program in the country.
The rebate would go to every resident living in the state for more than 200 days, including minors. It would have a profound impact on the well-being of Oregon families, workers, and the state’s economy:
A household of four would receive over $6,400 every year, breaking debt trap cycles that keep Oregonians in poverty.
The measure would decrease the overall poverty rate in Oregon by 36%.
Estimates show the measure will decrease childhood poverty in the state by 53%, as well as poverty in Hispanic/Latinx communities by 56%, Black communities by 24%, and 26% among seniors, according to Policy Engine.
Over $6 billion in direct payments will flow into Oregon’s economy each year, drastically increasing purchasing power among the 100% of residents whose net income will increase, boosting the state’s economy.
"The Oregon Rebate is designed to help everyday Oregonians who are struggling to make ends meet,” said Chief Petitioner Antonio Gisbert. “We recognize that when individuals and families thrive – not just CEOs and shareholders – our entire state prospers. At a time of record corporate profit, everyone can reap the benefits. By putting money directly into people's pockets, we can strengthen and support the people, families, neighborhoods, communities, and small businesses that make our economy strong."
Measure 118 would increase the minimum corporate tax rate after $25 million of in-state revenue by 3%. The proposed increase would raise at least $6 billion annually, which would generate $1,600 rebates for all 4.2 million Oregonians each year once fully implemented in 2027, according to estimates from the Legislative Revenue Office’s report.
Currently, the largest and most profitable corporations manage to pay minimal to no income taxes through various distortion tactics, using tax credits and incentives, or structuring maneuvers that minimize tax liabilities. Recent reports revealed that 34% of the largest corporations do not pay a single dollar in federal income tax. And despite reporting profits, seventeen major corporations, like Tesla, T-Mobile, and Duke Energy, not only paid no federal income tax over five years but received refunds. These same corporations paid their top executives a cumulative $5.3 billion over the same period in which they paid zero dollars to support essential public services or local aid.
“If corporations can afford to rebate themselves, they can afford to rebate Oregonians,” continued Gisbert.
Unsurprisingly, most corporations operating in Oregon that generate over $25 million of revenue within the state dodge Oregon’s 7.6% income tax and instead pay just the minimum rate, which is less than 0.12% on state revenue. By comparison, the average income tax rate for everyday Oregonians and small owner-operated businesses is between 4.75% and 9.9%.
The Oregon Rebate levels the playing field. Even with the newly imposed minimum tax rate, impacted corporations will still pay a much lower income tax rate than the state’s corporate income tax of 7.6% and that of their own employees working in Oregon. Large corporations operating in Oregon will continue to benefit from a low tax rate that keeps companies competitive and costs low with the added benefit of extra cash in consumer’s pockets to spur the local economy and their own bottom line.
“Today, the largest corporations doing business in Oregon pay less than 0.12% in taxes, that’s just plain wrong,” said Lonnie Douglas, a retired Coast Guard veteran and registered Republican who helped write the measure. “Combine those cost savings with the record-breaking profits over the last few years and one thing is crystal clear: large corporations can and should pay more to carry their fair share of the tax burden and give workers breathing room. At its core, the Oregon Rebate is about valuing every Oregonian and investing in our shared future.”
The measure has drawn comparisons to popular independent-leaning policies like The Alaska Permanent Fund Dividend and the popular pandemic-era Child Tax Credit. At an amount on par with pandemic-era stimulus checks, all Oregonians can expect similar increases in financial stability and food security. However, unlike government stimulus payments, Measure 118 is revenue-neutral to the state and would occur annually.
Corporations like Comcast and their special interest supporters often use scare tactics like the threat of price increases when fairer corporate tax increases are on the ballot. But this is a distraction from their record-breaking profits. Corporate profits in 2023 were 54% higher than in 2019, largely due to inflation. A recent report indicates that 53 cents out of every dollar of inflationary price increases were due to corporate profits during the second and third quarters of 2023. Since the start of the pandemic, corporate greed accounted for nearly one-third of all inflation.
“Corporate special interests will try and scare you with the threat of higher prices,” continued Douglas. “But it’s important we call their bluff. Because of the inflation of their own making, they’ve seen their coffers expand by over 50% in just a few year’s time. A measly 3% of their revenue after $25 million in the State of Oregon is a drop in the bucket for them and they know it.”
This "greedflation" has exacerbated consumer frustrations as they face rising costs and stagnant wages. Consumers are pushing back with their pocketbooks: spending has yet to surpass 2022 levels and economic pessimism and corporate dissatisfaction are at an all-time high.
“It’s time these corporate giants and Koch-funded special interests opposing our campaign see the writing on the wall,” said Dave Alba, the State Coordinator for Progressive Democrats of America based in Philomath Oregon. “The Oregon Rebate will help rural communities by giving back to working families who make corporate earnings possible. We’ve seen enough price gouging and greed-flation and are taking back our power. These cash-flushed companies can be good actors for once and give back to the consumers, workers, and communities who have made their extraordinary earnings possible.”
Oregon Rebate was created by about a dozen everyday Oregonians who came together in coffee shops in rural Eugene in 2018. This eclectic group ranged from High School students to retired folks, from the well-off to the unhoused, from Democrats to Republicans, and together hashed out a policy they could all agree on.
“Our coalition truly represents Oregonians,” said Satya Lee, a single mother and small business owner in Eugene who also helped write the measure. “We are working people from all walks of life looking for pragmatic solutions for families like ours who are struggling to keep up with the rising cost of living. We asked ourselves what would make our own lives and communities better and the Oregon Rebate was our answer: taxing giant corporations a bit more and then rebating that money back to the people of Oregon.”
Establishment politicians in Oregon, including Gov. Tina Kotek and leaders in the state legislature, have joined with Koch Industries and special interest groups like the Western States Petroleum Association to oppose Measure 118. However, the Oregon Rebate team has seen a groundswell of support from everyday Oregonians and submitted over 170,000 signatures to gain ballot access.
“It is the will of the people of Oregon who will decide the fate of Measure 118, not politicians who these very corporations often bankroll. We aren't seeking the support of politicians because we don't need it – the power is with the people here. Our opponents can keep paying lip service to their donors and we'll keep working to turn out voters in November,” concluded Gisbert.