Initiative Petition 28, a proposed mammoth tax increase on big businesses in Oregon, would in practice act largely as a consumption tax, like a sales or valued-added tax,by the nonpartisan Legislative Revenue Office has found.
The proposed gross receipts tax on businesses with more than $25 million in Oregon sales would not make the state’s tax system more progressive. In fact, the tax system would become slightly more regressive, the analysis found, as the tax’s costs are passed on to all consumers, with particularly large impacts on retail and utility prices.
According to the analysis’s computer modeling, people with incomes of $21,000 or less a year would pay $372 more in indirect state taxes.
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