Jumping to conclusions

Do you know how will you vote on January 26? It’s hard to wade through all of the propaganda regarding proposed tax Measures 66 and 67.

Tax issues are generating a lot of heat and perhaps it is a bit blown out of proportion. It is, of course, important to vote—and great job to ASPSU for registering all of the new voters in the last few weeks.

According to the Oregon Department of Revenue, Measure 66 passing would affect individuals making $125,000 or more and households making $250,000 or more. Their tax rates will increase from the current 9 percent to 10.8 or 11 percent retroactively for 2009, and that rate will apply through 2011. In 2012, it will reduce to 9.9 percent. In the end, this would raise $472 million.

Measure 67 is a bit more complicated and would change how a business is taxed. It has to do with Oregon corporations paying sales taxes—currently, there are companies reporting high sales but no profits and paying the minimum tax of only $10. Measure 67 would change the minimum to $150 and make companies pay taxes on their gross sales on a sliding scale, depending on the actual dollar amount. These taxes would also take effect retroactively for 2009 and last through 2011 as well, and raise $255 million.

It sounds fairly straightforward, but there are things to consider. For instance, it is hardly ever mentioned, but one could vote yes on one measure and no on another. Why is this hardly ever mentioned?

It seems there are tax lovers and tax haters, and they make up their mind to love or hate any and every tax proposal no matter what. In case you hadn’t noticed, these people are full of angry commentary. This kind of nonobjective jumping of the gun is not a good way to approach voting. It is our duty as voters to actually weigh the options and make an informed, rational decision that we believe in.

Opponents of the proposed taxes argue it is classist for the wealthier to pay higher taxes and that passing these increases will hurt the economy even more. People argue that companies will pass the tax increases onto employees by laying them off, creating a worse economy.

Pat McCormick, a Portland lobbyist who has spoken out against the measures, accused supporters of portraying the measures’ opposition as “filthy rich” people and Wall Street highfliers, according to The Oregonian. He says owners of modest, small businesses will be hurt by this measure.

Proponents of the tax say an increase will only affect a small amount of individual Oregonians, and that the tax increases for the companies would be small. According to The Oregonian, supporters say the money is needed or else cuts will be made to schools, universities, elderly care, prisons and other state-run services.

A common misconception often framed by opponents of any tax is that Oregonians pay more taxes than many other states’ citizens and that our state’s budget is through the roof.

According to Nigel Jaquiss of Willamette Week, the state budget for 2009¬–11 is $14.2 billion, less than last biennium’s budget. It is quite abnormal for the budget to go down like that, so make sure to objectively question the idea that the state is overly money hungry and thus proposing these taxes.

Jaquiss also states that our income tax rate is among the highest in the nation, but reminds us that we pay no sales tax, a freedom we share with only four other states. He goes on to say that Oregon came in 42nd for how much we are taxed on a percentage-of-income basis in a survey done by the state’s Legislative Review. That means 41 states pay more taxes per person than Oregonians do.

Oregon has had extremely low business taxes too, presumably to get businesses to locate here. Oregon only has two Fortune 500 companies—and six in the top Fortune 1000—so this does not seem to be working. Maybe you don’t think Measure 67 is a good idea, but it is pretty hard to use the excuse that it will keep companies away since that is already happening and has been for some time.

The fact is that times are tough everywhere and the state thinks this is a good way to help them bring in needed revenue, so as to not cut and shut down services. The money is needed, but the decision must be made as to whether Measures 66 and 67 are the best way to go about it. You need to decide for yourself what you believe and exercise your right as an American to vote.
 

Measures 66 and 67 poll

Head over to the Vanguard’s Facebook page and take our poll on Measures 66 and 67. Are you for the measures or against them? Make sure you get your word in on the matter. Voice your opinion now!

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