Say Yes to Tax Fairness

Article by Erika Spaet

On January 26, 2010 Oregon voters will have two choices: to keep funding in the budget for vital services like education, healthcare and smart public safety, or to throw it away. It doesn’t have to be a difficult decision, and there’s something everyone can do to make sure Oregonians protect the things that make Oregon a great place to live.

PSJ is joining with Defend Oregon, a coalition of non-profits advocating for tax fairness, to encourage all voters to vote “Yes” on January 26 on Measures 66 and 67. They’ll be the only things on the ballot, and they both have to do with tax fairness.

The Measures at a Glance

Oregon’s corporate income tax—what big businesses pay to operate here—is $10. It hasn’t been changed since 1931. The average Oregon family pays about $3,100 per year in income taxes: 300 times more than Macy’s and Sprint pay. Measure 66 will increase that corporate income tax from $10 to $150.

Measure 67 will increase the marginal income tax for corporations making more than a quarter of a million dollars by 1.3%. It will also increase the marginal income tax for individuals making more than $125,000 or couples making more than a quarter of a million dollars by 1.8%.

Remember, this is only a slight increase on the marginal income tax. That means that only the amount over $250,000 will be subject to the new tax. For example, a business that makes $260,000 a year will see its taxes increased by $130—a 1.3% tax on $10,000 (the amount over $250,000). A couple that makes $260,000 a year will see their income taxes raised by $180—1.8% of $10,000.

It may be confusing, but the bottom line is that 97.5 percent of Oregonians won’t see any difference in their taxes at all. And only about 7% of small businesses will be affected. Only those who can afford it will see this slight increase in taxes.

Another Ballot Measure?

Oregon has been using the ballot measure system since 1907. In fact, Oregon relies more on ballot measures than almost any other state, so much so that the initiative system is called the “Oregon System.”

A century ago, ballot measure initiatives were an ingenious way for people in the United States to practice “pure democracy”: if citizens wanted something to change, they simply put it on the ballot and voted for it. Influential politicians, including Thomas Jefferson, really liked it because it allowed the people to really speak and use their voting power. Over the last century, ballot measures have brought important change, including women’s suffrage.

But now, the initiative process has been used by agenda-setters such as politicians seeking re-election and big corporations looking for higher profits. This particular ballot measure has millions of dollars behind it from big businesses hoping Oregonians will vote against protecting those important services.

By voting “yes,” we’re exercising our electoral power in defense of services for all of us in Oregon.

Why PSJ Cares

These small changes in tax policy add up to about $1 billion in funding for important services. The legislature needs that money to balance its budget in this next fiscal year, and if the measures don’t pass, funding to programs that keep Oregon safer and healthier will be slashed in a desperate attempt to come out even.

PSJ knows Oregon can save money, save lives and prevent crime by investing in drug and alcohol treatment. We worked hard during this past legislative session to prevent drastic cuts to treatment services and the Oregon Domestic and Sexual Violence Services Fund, among other things. No one can afford a billion dollars more in cuts.

Take Action

PSJ believes strongly in the power of our members and all Justice Matters subscribers to make a difference in their neighborhoods and communities. That’s why we’re asking all of you to do the following:

• Vote “Yes!” on Measures 66 and 67 on January 26.
• Sign the pledge on Defend Oregon's website, saying you’ll vote to protect important services.
• Teach your family, friends and neighbors about January’s vote. Most people don’t know about it, or won’t be sure about the facts. You’ll be providing critical information to people you know about ballot measures that will determine Oregon’s future.

This winter season will be a confusing time for Oregon voters: the opposition will be using their billions to force legislators to slash funding from programs that educate us and keep us safer and healthier. Just remember: Vote “Yes” for tax fairness and an Oregon that’s safe for us all.

We encourage you to be an active campaigner this season! Contact Erika at (503) 335-8449 to get involved or for more information.

This article orginally appeared in the Fall 2009 issue of Justice Matters.