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About Street roots. (Portland, OR) 1998-current | View Entire Issue (Oct. 28, 2016)
Page 12 Street Roots • Oct. 28-Nov. 3, 2016 Commentary Don’t get conned by the lies about Méasure 97 BY ROBIN HAHNEL tape at Lowes is $12.98 in all four states. A Lego set at Toys “R” Us is $29.99 in all four states. And a tube of Banana Boat sun screen Who should vote for at Walmart is $10.73 in all four states. Measure 97? • Studies show that differences in state nyone who cares that Oregon has the taxes have no statistically significant impact 4th lowest graduation rate in the nation on prices. Oregon consumers have been and the third largest class sizes - paying the same as consumers elsewhere because that’s where the bulk of the revenue even though our corporate taxes are the will go. lowest of any state. We will continue to pay Anyone who cares that 1 in 4 Oregonians the same as consumers elsewhere after we still do not have health insurance - because raise taxes on large corporations because simply says that if the state collects $3 billion the money will also go to subsidize health they engage in national pricing. more a year in taxes this means that state insurance for those who can’t afford it. • If a company that pays the tax tries to taxes per capita will rise by $600. It says Anyone who cares that more than 47,000 pass it on to consumers by raising its prices nothing about how much M97 will cost Oregon seniors live jn poverty, a 22 percent they will lose customers to the 99.8 percent anybody in particular, much less an average increase over the last decade - because that Oregonian. Imagine Oregon decided to collect of businesses who do not pay the tax. It’s is also where the money will go. $3 billion more a year in taxes from one called competition! Any resident of Oregon who thinks he or Oregonian - say Phil Knight. This would also • In wholesale and retail 62 percent of she is paying too much in taxes already - increase state taxes per capita by $600, but sales will be unaffected by the tax increase. In because the reason the rest of us pay as much clearly it would not cost anybody in Oregon manufacturing 72 percent of sales will be as we do is that Oregon is dead last among all except Phil Knight a penny, unless he unaffected. In health care and social states in corporate taxes collected. managed to pass on his tax increase by assistance 69 percent of sales will be raising the price of Nike shoes sold in unaffected. In construction 84 percent of Oregon. Similarly, since according to the sales will be unaffected. In all but three of 15 Who should vote against LRO, only 1051 large corporations will pay sectors the LRO uses to study the Oregon Measure 97? the entire $3 billion, this will increase state economy, more than 50 percent of sales will Only 0.2 percent of all registered taxes per capita by $600, but it will not cost be unaffected by the tax. businesses in Oregon have more than $25 anybody else a penny unless the affected • Economic theory predicts, and empirical million in-state sales annually, and therefore corporations raise their prices in Oregon. evidence confirms that in situations like this are affected by the tax. So only the people Which brings us to the opposition’s second affected firms will be afraid to raise prices who own those few, large corporations have lie. because they will lose customers to their any personal reason to vote against M97. competitors. But guess what? Almost none of these Lie 2: The tax will be passed on as higher wealthy people live in Oregon, and therefore prices and therefore paid for by Oregon Lie 3: The $3 billion M97 will raise will not be able to vote against M97 consumers, including those with low incomes. annually will not be spent on education, themselves. So instead they are having their Not true! You can be sure this will not health care, and seniors but frittered away on corporations spend $24 million and counting happen for all these reasons: something else. trying to con Oregon residents into thinking • If the 1051 corporations who must pay Not true! The measure on your ballot says that low and middle income Oregonians will the tax could pass it on as higher prices to that all revenue raised is “dedicated to pay. consumers they would not be spending $24 education, health care, and senior services.” Lies opponents are telling million to defeat M97! And the voter pamphlet elaborates: Oregonians • The affected corporations engage in “Approximately 80 percent of the state budget national pricing strategies and charge the is already in education and health care, so Lie 1: M97 will cost an average Oregonian same amount for products in different states there is a strong propensity for the money to $600. even though corporate taxes differ from state go to those areas if M97 passes.” The truth is Not true! Opponents take the number $600 to state. Alaska has the highest corporate that any other way of increasing revenue from the Legislative Revenue Office (LRO) taxes, Washington has the 24th highest, Idaho would be less likely to actually go to Report on M97. But $600 came simply from has the 33rd highest, and Oregon is dead last education, health care, and seniors. dividing the total amount of new revenue the and has the 50th highest But the price of a LRO projected M97 would generate per year box of Honey Nut Cheerios is $3.79 at Target Lie 4: Measure 97 will damage small by the number of taxpayers in Oregon. It in all four states. The price of a roll of duct businesses. C O N T R IB U T IN G C O L U M N IS T A Not true! Any business with less than $25 million in-state sales annually will not pay a penny more in taxes. So it does not harm them at all. Moreover, since small businesses have to compete with the 1051 large corporations that will have to pay more, Measure 97 helps small businesses because it helps even the playing field for them versus their larger competitors. Robin Hahnel is Professor o f Economics Emeritus from American University, Faculty Affiliate at Portland State University, and Co-Director o f Economics for Equity and the Environment. »PHC Lie 5: Measure 97 will damage farmers. Not true! The tax affects you only if you are a corporation, and only if you have more than $25 million in state sales, Oregon farming families, like smaller businesses in other industries, will not pay a penny more in taxes and will be helped in their competition with large corporate agricultural businesses that are affected by the tax. Moreover, sales of farm co-ops to their members are exempted from M97’s tax, and rural Oregon in particular is in desperate need of the resources for schools, health care, and senior services that M97 will provide. Lie 6: It is better to let our legislators come up with a way to raise revenues if necessary after M97 is defeated at the ballot box. Not true! This may be the most cynical and biggest whopper the opposition is spreading. Since 1996, passing a tax increase through the Oregon state legislature requires a 3/5 super majority. As a result we have complete gridlock in Salem on taxes, where Democrats have a majority but not a super majority. If we don’t break the logjam by passing M97 as a ballot measure this fall the revenue shortfall will only get worse and worse. Conclusion We have an opportunity to finally invest in education and public services at a level we can be proud of. Don’t be conned by the likes of Comcast, Wells Fargo, and Chevron. A yes vote puts you on the side of Oregon’s educators, PTAs, nurses, firefighters, and community groups. A yes vote will solve decades of revenue shortfalls in Oregon. A yes vote will finally hold large corporations accountable for paying their fair share. Vote yes on 97. 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