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Continued from Page 1
The percentage? would vary ac
cording to the field the busi
ness is involvnd in, Hallock
said. For instanco, retailers,
who generate a lot of rnvenue,
would pay at a lower percent
age rate than a service business
such as a law firm.
The benefits of this systom
include manageability, a rela
tively low tax rate, and stability
as an income source. It is esti
mated that this tax would gen
erate $500 million for the state.
The problem with the tax is
that It may hurt Orogon’s busi
ness. Also, it could appear as a
kind of sales tax that would bo
passed along to consumers as
an extra cost.
Ken Tollcnaar, intorlm direc
tor of the Bureau ofGovern
mental Research, said he be
lieves votors would prefer a
sales tax over a gross receipts
tax.
"Gross rocoipts is not a new
idea." ho said. "(People) have
to look at it as an idea boat
down in the past, often by labor
groups claiming it is recessive
tax."
It is estimated that a 6 per
cent sales tax would raise S2.2
billion for the state.
Supporters of a sales tax pro
posal would have to overcome
Oregonians’ traditional opposi
tion to such a tax and would
have to counter arguments that
it is regressive, meaning it
poses more of a burden on low
income residents than on
wealthier taxpayers.
Hallock said she does not be
lieve a sales tax alone would be
enough to reform the tax sys
tem because it does not spread
the tax burden equally between
businesses and individuals.
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