After months of conspicuously guarding her opinion, Gov. Kate Brown this morning came out in favor of what's likely to be Oregon's most contentious state-wide issue in November: The proposal to ramp up taxes on large companies in the state.
What should soon be known as Measure 97, but is currently called Initiative Petition 28 could raise up to $3 billion a year by slapping a 2.5 percent tax on some C corporations with sales of more than $25 million (here's a lot more detail).
The business community is forming up against the measure, saying it'll slash private-sector jobs and lead to price increases for consumers. The labor-backed campaign for the measure says it corrects a basic unfairness in Oregon's lax business tax structure, and that it'll be a windfall for much needed causes like schools. Interestingly, though the measure specifically calls out education, health care, and senior services as targets for the money, the Oregonian reports today that the legislature wouldn't be constrained in how it could spend.
Anyway, after being called out by former Gov. John Kitzhaber in early June for not talking up the tax measure, Brown is now officially on board. (She'd already announced how she'd spend the tax money back in June, without endorsing the proposal.) Here's her statement in favor of the soon-to-be Measure 97.
“I have spent my career fighting to make Oregon a place where everyone can thrive. I support Measure 97 because there is a basic unfairness in our tax system that makes working families pay an increasing share for state and local services, including public schools, senior services, and health care. By some measures, Oregon is among the lowest in corporate taxes, and Oregonians expect everyone to pay their fair share.
“Our state cannot move forward and meet Oregon’s growing needs over the next decade without a more stable revenue base. Measure 97 is an important step forward, and I will make sure the funds the measure yields go towards schools, health care, and seniors, as the voters expect.
“State leaders before me have repeatedly tried and failed to solve the problem of adequate and stable funding for schools and other state services. Every solution has had strengths and weaknesses in terms of fairness and economic impact. None has succeeded in bringing the business community, individual and family taxpayers, service providers, and advocates together.”