Oregon Business Community Rallies To Fight Corporate Tax Measure

By Jeff Mapes (OPB)
July 12, 2016 2:37 p.m.

The business community is already raising millions of dollars to fight a proposed ballot measure that would dramatically increase corporate taxes on large companies in Oregon.

A new disclosure report shows opponents have already raised about $5.5 million, far outpacing the fundraising by the labor-backed coalition promoting the measure.

The ballot measure, known now as Initiative Petition 28, would be the largest tax increase in Oregon history.  Corporations with annual sales in Oregon of at least $25 million would pay an estimated total of $3 billion a year.

Supporters say it would help solve Oregon's chronic problems in paying for schools and other services.   Opponents call it a hidden sales tax that would hurt the state's economy.

Auto dealers, grocers, insurers, oil companies and timber companies are among the major contributors to the opposition campaign, known as 'Defeat The Tax On Oregon Sales'.   The Automobile Dealers Association of Portland was the largest donor, giving $250,000.  Phillips 66, an oil company, gave $217,000.

The coalition supporting the corporate tax, A Better Oregon, reported raising about $450,000.

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Rebecca Tweed, who is managing the campaign against IP 28, last week predicted a “noisy campaign” that could be the most expensive in the state’s history.  The record was set in 2014 over a narrowly defeated ballot measure that would have required labeling for genetically altered foods.

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In that fight over GMO labeling, opponents spent nearly $21 million while supporters spent about $8 million.

Pat McCormick, a spokesman for the campaign opposing IP 28, said the group would continue its aggressive fundraising.  "Absolutely," he said.  "I'd describe this as the ante."

Katherine Dreissen, a spokeswoman for A Better Oregon, released a statement saying that corporate taxes in Oregon are too low. She added: "We fully expected the world's largest corporations like Comcast to spend more money than any other campaign in Oregon history, and we're ready."

Business and labor lined up against each other over a 2010 tax fight over a pair of measures seeking to repeal legislation raising taxes on corporations and higher-income taxpayers.

Voters approved the tax increases and supporters of those tax hikes  -- known as Measures 66 and 67 -- outspent the business community.  McCormick said things are different this year.  Opponents have more time to raise money and they are more successful in getting large contributions from out-of-state donors.  Besides Comcast, they include such companies as Phillips 66, Target, Metlife and Costco.

Dreissen said supporters expect to be outspent this year.  "We can't match their out of state corporate money," she said in an email.

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