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Gov. Kate Brown, pictured in this June 16, 2016 photo, has not yet announced her position on IP 28.
(Dave Killen/Staff)
The corporate-tax hike proposal aimed at the November ballot has already generated plenty of attention from the public employee unions that are pushing it, the business community that opposes it, and the economists who are studying what the massive increase might mean for Oregonians.
But what Oregonians also need to hear is where candidates for elected office stand on the proposal, which would levy a 2.5 percent tax on certain corporations with more than $25 million in Oregon sales.
The stakes are high: While the revenue raised by the tax is estimated to be $3 billion a year - boosting general fund revenue by nearly one-third - it would also likely result in increased prices to consumers, state economists concluded. The Legislative Revenue Office found that the tax, which will hit retailers, wholesale companies and utilities the hardest, would also slow growth in private-sector employment by thousands more jobs than it would boost public-sector employment.
Is it worth it? Here's what major-party candidates for governor, secretary of state and state treasurer said:
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Governor
Gov. Kate Brown (Democrat): UNKNOWN. Brown has yet to state whether she supports or opposes the ballot measure. A spokeswoman for her campaign told The Oregonian/OregonLive editorial board that the governor will be announcing a decision "soon" but that there's no timeline.
Brown's nonposition is inadequate, especially considering that the governor already has released an "implementation plan" for how she would spend the new revenue if the measure were to pass.
It's unclear what Brown is waiting for. Asked twice to specify the information the governor still needs before making a decision, Gov. Brown's campaign did not respond.
Bud Pierce (Republican): OPPOSES. Pierce said the tax will increase costs for Oregon families for goods and services. He also cited the lower private-sector job growth adding that "we need to reform the government."
Cliff Thomason (Independent): OPPOSES. "Oregonians have always opposed a sales tax and that's exactly what this is," he said in an email. "Billing it as a big corporation tax, saying they should pay more, is just part of the big con. Corporations don't pay these type of taxes, we do."
Secretary of State
Brad Avakian (Democrat): SUPPORTS. "In recent years Oregon has made great progress in returning 21st century shop classes to our public schools and preparing our students for the modern workforce." The measure, he said, "is the only funding option presented to the voters which allows us to continue that progress and ensure Oregon's employers have the local, skilled workforce they require."
Dennis Richardson (Republican): OPPOSES. "I want to ensure that Oregon is a welcoming place to do business and that our businesses are operating in a climate that allows them to grow and hire our neighbors in family-wage jobs," Richardson said in an email. "I believe IP 28 is a gross sales tax with a pyramid pass-through effect and would be devastating to Oregon's recovering economy."
Paul D. Wells (Independent): OPPOSES. Jobs are the foundation of society, he said. The measure, which levies taxes based on gross receipts rather than profits, would be "a job killer and nothing more."
Treasurer
Jeff Gudman (Republican): OPPOSES. "This is an unprecedented, pass-through sales tax that doesn't exempt food or medicine. It is unconscionable that Democratic incumbents either dodge the question or pretend to be undecided - while quietly deciding how to spend the money."
Tobias Read (Democrat): SUPPORTS if there is no legislative alternative. Read said in an email that legislative solutions are a better way to address complicated issues, such as taxes. But he added that he recognizes "the frustration that results from legislative inaction and the urgency of education funding." He said opponents should come to the table with a proposal.
Chris Telfer (Independent): OPPOSES. "The negative effects on the middle class and those below the poverty line are too costly," she wrote. She said she also opposes the measure for "the damage it will cause to economic growth in Oregon."
- The Oregonian/OregonLive editorial board