Oregon businesses are heavily investing in efforts to oppose a new ballot measure, known as Measure 118, which proposes taxing corporations to fund a rebate program providing $1,600 annually to residents.
The initiative mirrors a universal basic income program, with the goal of supporting individuals across the state. However, the fate of this measure will ultimately be decided by voters in the upcoming November election.
What is Oregon Measure 118?
This Article Includes
Measure 118, also referred to as the Oregon Rebate, would raise the state’s corporate tax rate by 3% on companies that earn over $25 million in revenue within Oregon.
The funds generated from this tax increase would then be distributed to all Oregon residents, including minors and dependents, who have lived in the state for at least 200 days. This proposal has gained significant public support, with over 170,000 residents signing a petition to place it on the ballot.
Growing Bipartisan Opposition
While the measure has gained traction among some residents, it has faced strong bipartisan opposition from Oregon lawmakers. Both Democratic and Republican leaders argue that the measure is flawed and could severely damage the state’s finances.
Democratic Governor Tina Kotek has expressed concerns that, while the proposal may seem promising, it could create a significant shortfall in the state’s budget, threatening critical services that many low-income and working-class families rely on.
Similarly, the state’s Republican Party has described the measure as “misguided and harmful,” claiming that the rebate would be overshadowed by rising prices for essentials like food, medicine, and gas, and could drive businesses out of the state.
Economic and Budgetary Concerns
Opponents fear that Measure 118 could create a financial crisis, with the state’s Legislative Revenue Office estimating a $1.3 billion deficit in the general fund if the measure passes.
They warn that this could lead to cuts in vital public services such as infrastructure maintenance, firefighting, and addiction recovery programs.
Additionally, there is concern that low-income recipients of the rebate might become ineligible for federal assistance programs like Medicaid and Temporary Assistance for Needy Families (TANF).
Supporters’ Argument: Stimulating the Economy
Despite the mounting opposition, Antonio Gisbert, the individual behind the measure, remains steadfast in his belief that the program will benefit Oregonians.
Gisbert argues that the increased corporate taxes would cover all costs related to the rebate, and that the measure would reduce poverty while boosting economic growth. He claims the rebate would be revenue-neutral and would not negatively impact the general fund.
Gisbert also suggests that many elected officials are more focused on protecting corporate interests than on advocating for ordinary residents, adding that Measure 118 would create greater corporate tax fairness in the state.
The Fight Over Universal Basic Income
If passed, Measure 118 would make Oregon the second U.S. state to implement a form of universal basic income, following Alaska’s Permanent Fund, which provides annual payments to residents. Proponents of universal basic income argue that these types of programs can help low-income individuals cover basic necessities and boost local economies.
However, critics, often from conservative circles, argue that such programs encourage dependency and resemble socialism by offering money without requiring work.
As the November election approaches, Oregon voters will ultimately decide whether Measure 118’s benefits outweigh its potential risks.
Source: Business Insider