Oregon will still have the lowest corporate taxes in the West
Fri, Jul 31 2009 03:20
| Defend Oregon, ballot initiatives, corporate taxes
| Permalink
Our friends over at Defend Oregon have released a terrific, full-page ad in the Portland Business Journal that helps to refute some of the many myths big business is spreading about the corporate tax reform bill.
The ad highlights the fact that under the recently passed legislation:
Our corporate tax system will finally be modernized.
It replaces the outdated $10 corporate minimum (unchanged since 1931) with a sliding rate equal to one-tenth of one percent of Oregon sales. The new minimum will be set at $150, and capped at $100,000. Profitable corporations will, for the next couple of years, pay an additional 1.3% tax on profits above $250,000. Starting in 2013, the additional tax will drop down to 1%, and will only apply to profits over $10 million.
Oregon corporate taxes will still be the lowest in the West.
In Washington, state and local taxes on corporations account for 5.5% of gross state product; in Idaho, it’s 4.7%. In California and Nevada both, it’s 4.6%.
The national average is 4.9%. In Oregon, the figure is now 3.7%;
after the increases, it will be 3.8%, tied for 48th in the nation.
Public employees are sharing the sacrifice.
According to the contract that was just settled with the Governor, state employees are taking an average of 13 unpaid furlough days this biennium.
That’s a pay cut of 2.5% for workers, most of whom make less
than $41,000.
Oregon can’t afford to go back to our old, out-dated corporate tax system. We know most business leaders don’t want to see criplling cuts to essential services. Fortunately, we believe that when they learn the facts about fair share corporate tax reform most will support the balanced approach the legislature enacted.
The ad highlights the fact that under the recently passed legislation:
Our corporate tax system will finally be modernized.
It replaces the outdated $10 corporate minimum (unchanged since 1931) with a sliding rate equal to one-tenth of one percent of Oregon sales. The new minimum will be set at $150, and capped at $100,000. Profitable corporations will, for the next couple of years, pay an additional 1.3% tax on profits above $250,000. Starting in 2013, the additional tax will drop down to 1%, and will only apply to profits over $10 million.
Oregon corporate taxes will still be the lowest in the West.
In Washington, state and local taxes on corporations account for 5.5% of gross state product; in Idaho, it’s 4.7%. In California and Nevada both, it’s 4.6%.
The national average is 4.9%. In Oregon, the figure is now 3.7%;
after the increases, it will be 3.8%, tied for 48th in the nation.
Public employees are sharing the sacrifice.
According to the contract that was just settled with the Governor, state employees are taking an average of 13 unpaid furlough days this biennium.
That’s a pay cut of 2.5% for workers, most of whom make less
than $41,000.
Oregon can’t afford to go back to our old, out-dated corporate tax system. We know most business leaders don’t want to see criplling cuts to essential services. Fortunately, we believe that when they learn the facts about fair share corporate tax reform most will support the balanced approach the legislature enacted.
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