The proposal is meeting stiff bipartisan resistance from elected officials and pushback from the business community.

By Scottie Barnes, The Epoch Times, August 23, 2024;

Oregonians will vote in November on a controversial ballot measure that would give every resident, regardless of age or income, $1,600 each year—as long as they live at least 200 days in the state.

A family of four would receive $6,400 annually, with no strings attached. The money would be nontaxable and would not affect other benefits.

If voters approve Measure 118, the universal basic income (UBI) program would be funded by a tax on the gross receipts of corporations that generate more than $25 million in annual sales.

Oregon would be the first state to roll out such a comprehensive UBI.

As of June, no U.S. states had a UBI program, though several states and cities have run pilot programs.

Oregon Rebate, the group backing the measure, says on its website that Measure 118 (previously known as IP 17) would increase minimum corporate taxes to 3 percent.

The organization claims that the “largest corporations” currently pay less than 1 percent in Oregon tax, while individual taxpayers pay from 5 percent to 10 percent.

Local small businesses would not be affected by the tax increase, it says, as the tax would apply only to corporations making more than $25 million a year.

The Tax Foundation, a Washington-based think tank, disputes the claim that corporations pay less than 1 percent in Oregon taxes. It notes that the state already has “one of the highest business tax burdens in the country.”
In a report on the measure, the foundation concludes that Oregon corporations pay a 7.6 percent corporate income tax and a 0.57 percent gross receipts tax.

If they’re in the Portland area, they are subject to a 2.6 percent business license tax, a 2 percent business income tax, a 1 percent supportive housing services tax, and a 1 percent Clean Energy Surcharge, all of which are additional taxes on net income.
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Oregon corporations pay taxes on profits and gross receipts (sales attributable to Oregon), making it one of only two states (the other is Delaware) that impose both types of taxes.

Money provided by the measure would decrease overall poverty in the state by 36 percent, childhood poverty by 53 percent, and senior citizen poverty by 26 percent, according to Oregon Rebate.

“More money in the pocket of Oregonians will boost our economy and mean more jobs, opportunities, and taxable revenue,” the group states.
According to an Oregon legislative fiscal analysis published on July 23, households making less than $40,000 won’t have any Oregon tax liability should the measure pass.

“The [payment] might sound good,” the Tax Foundation wrote, “but if it raises the cost of goods, drives jobs and economic activity out of state, and puts Oregon-based businesses at a massive disadvantage with their out-of-state competitors, it’s likely to be an awful deal for Oregonians.”