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Where to begin to respond to Mike Litt’s letter of Nov. 19 that was filled with (inaccuracies) and liberal deception of the imposed tax increases by the Oregon Legislature.
1. Measure 66 increases individual taxes either from nine percent to 10.8 percent, a 20 percent increase for the taxpayers, or nine percent to 11 percent, a 22 percent increase which is not “modest” to Oregonians. Do you earn 20 percent more in income? This is estimated to raise $469 million.
2. Measure 67 increases taxes on corporate “profits” from 6.6 percent to 7.9 percent, a 20 percent increase, increases corporate filing fees, and sets a new tax “the minimum tax” to $150 for smaller corporations and up to the $100,000 for the larger corporations, which could result in job losses. This is estimated to raise $258 million. The total of the two measures’ $727 million takes from hard-working Oregonians, and this is not a “modest” tax increase.
3. Oregon government is the only industry that is growing and expanding at this time of layoffs and reductions in the private sectors. Rather than advocating for more government employees, it is time for the Legislature to start making cuts in the budget, like every household and family is now forced to do, and start shifting current budget money from bureaucrats and bloated departments to schools and police as they always profess as having the greatest need. Has anyone done the math on large school increases over the years?
4. Yes, the tax increases will eliminate jobs. Analysis from the state economists estimate that Measure 66 will eliminate 36,000 jobs over six years. Measure 67 will eliminate 43,000 jobs over 10 years and probably more as federal taxes are increased by the current administration. This will hurt all businesses and therefore jobs.
5. Federal income taxes are only deductible for a small part of the total one must pay. The maximum is $2,800 for singles and $5,600 for couples, and that is being phased out. Any amounts above these deductions means you are paying a tax on a tax in Oregon. Does that seem fair?
6. Litt finally gets it right! “Many corporations find it more profitable to outsource jobs overseas that to create them locally.” I would add that corporations are moving existing jobs to other states as well as overseas. Examples are Columbia Sportswear, Albina Fuel and Kuni Cadillac. He is also wrong (again) about our business taxes being below other states. If you take away those states’ sales tax, the Legislature’s package would make Oregon’s corporate income tax rate among the highest in the country.
John Mills Woodwoth is a resident of Lake Oswego.
Almost fifty years as a wage earner tells me that companies hire the number of workers necessary to do the work they have, no more, no less. A small tax increase is not going to change that. Even if measures 66 and 67 are adopted, Oregon will still have one of the lowest business tax burdens in the US. The $10 minimum corporate tax has not been changed since the 1930s.
(email verified)
Fri, Dec 04, 2009 at 04:08 PM
It would be useful if Mr. Woodworth would get his facts straight and dispense with the distortions. For the real facts and impact 66 and 67 will have on Oregonians and businesses in this state I would urge you to visit the website of the Oregon Center for Public Policy. OCPP is a non-partisan research institute that does in-depth research and analysis on budget, tax and economic issues for the sole purpose of helping the voting public get accurate and non-biased information on pending legislation and ballot measures.
As you will see, data contained in their analysis of 66 and 67 stands in stark contrast to the misleading and incorrect distortions and fear-mongering contained in John Woodworth's letter.
(email verified)
Wed, Dec 09, 2009 at 08:06 PM
I hate to trouble 'Oregon Girl' with the facts but in truth, the only state that does NOT have a corporate income tax is South Dakota. I would also urge her to read the OCPP analysis to see if those contentions contained in her letter have any basis.
If she does, it would be interesting to know what she finds and if there is any data to substantiate her allegations.
I don't know about the rest of you but I'm really looking forward to hearing what she finds out!
(email verified)
Wed, Dec 09, 2009 at 08:19 PM
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Re: Measures 66, 67 would cause great harm
Great letter, Mr. Woodworth. Thank you! I just want to add that the $10 tax minimum on corporations being raised to $150 is an easy target for tax proponents to misquote.
First of all, most states don't even HAVE a "corporate minimum tax" Like Oregon, their corporations "pay their fair share" through other taxes and fees (for example,in Oregon, businesses currently pay 50% of local taxes; primarily property taxes). Secondly, the increase from $10 to $150 would only generate an additional $27 million - a mere fraction of the $261 million the state hopes to glean from measure 67.
So where is the other $234 million coming from? We hear about the new taxes on gross sales, NOT PROFITS, which is why a corporation can LOSE money while still owing up to $100,000. But we never hear about ALL 5 new taxes and fees in Measure 67, plus 150 new/increased fees quietly passed by the legislature this session!
It's clear that businesses ARE already paying their fair share, and it's not hard to understand how passing these measures would kill jobs in Oregon.
"Oregon Girl"
(email verified)
Thu, Dec 03, 2009 at 12:38 PM