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Oregon could be first to tax big companies, send cash to residents



By Erika Bolstad, Stateline.org

PORTLAND, Ore. — The pitch intrigued nearly everyone who encountered a petition gatherer seeking signatures in Oregon: Would you like a $750 annual rebate from the state, for each member of your household? Paid for “by making giant corporations pay their fair share”?

Voters signed on to the concept in droves, catapulting the initiative commonly known as the Oregon Rebate to November’s ballot. If passed, it would make Oregon the first state to increase the minimum tax on large businesses and send the cash to all residents, guaranteeing them a minimum income.

“I’m not exaggerating here, but we got an extremely positive response,” said Antonio Gisbert, a spokesperson for the Yes on Measure 118 campaign behind the Oregon Rebate. “The secret sauce is that it’s a pretty clear concept.”

But Oregon’s measure has drawn significant bipartisan and business opposition. And even supporters of basic or guaranteed income programs worry that Oregon’s broad measure, if passed, would expose budgetary pitfalls that will doom its success and deter other states from starting their own programs.

Interest in basic or universal income programs has grown in recent years as policymakers and activists have sought ways to fight poverty by giving people regular cash payments. Guaranteed income programs generally focus on specific populations in need, and universal income programs give everyone the same amount of basic cash, regardless of income or other socioeconomic status. States such as Minnesota and Washington have considered statewide anti-poverty pilot programs to study the effects of paying people cash; more than 150 such programs or pilots have launched nationwide.

Many of the pilot programs target specific populations, including single mothers, homeless youth and those who’ve faced historic disadvantages. Advocates say that giving residents no-strings-attached cash improved people’s lives by allowing them to spend government and philanthropic aid as they see fit, often on housing, medical emergencies or other necessities.

Several cities, including New York and San Francisco, have piloted guaranteed income programs for the arts. In Seattle, it’s part of an effort to address growing affordability issues that continue to have an effect on the vibrancy of the city’s arts scene.

Silicon Valley entrepreneurs have been especially big proponents of universal income programs. Sam Altman, the CEO of OpenAI, the parent company of ChatGPT, has sponsored a study of such efforts, in part to allay concerns about the effect of artificial intelligence on employment. The study yielded largely positive results, with some caveats. The programs had no measurable effects on physical health, for example.

But those who oppose universal income programs argue they’re handouts that discourage people from working, or that they’re costly endeavors that apply mere Band-Aids on complex social issues and don’t do enough to address their systemic roots.

In a 2022 study, for example, researchers examined the financial, psychological and physical health effects of giving people one-time cash grants of up to $2,000. They concluded that the money did not significantly improve the recipients’ lives — in fact, it “made participants’ (unmet) needs more salient, which caused distress.”

But that was a one-time grant. Basic and guaranteed income programs got a boost from a 2019 experiment in which researchers observed improved financial stability and health among 125 people who lived in low-income neighborhoods in Stockton, California, and received $500 per month for two years. The idea got a big lift as well from entrepreneur Andrew Yang, who ran for president in 2020 on the “Freedom Dividend,” a universal basic income proposal that would have paid all American adults $1,000 a month.

The Oregon measure

If the Oregon Rebate passes, the state would increase by 3% the minimum tax on corporations with in-state sales greater than $25 million to pay everyone the rebate, regardless of income. From the proceeds, most Oregon residents would receive an annual tax rebate, but some people with lower incomes could opt for a direct cash payment.

The state estimates 84% of people would choose a rebate via a refundable tax credit on personal income tax returns, reducing their tax bill. Rebates were estimated at $750 when proponents first began seeking signatures to put the issue to voters; a new state analysis estimates the rebate is likely to be as much as $1,160 in 2026 and $1,605 by 2027.

Despite the allure of cash, the ballot measure has met with widespread opposition, including from the Democratic governor, the legislative leadership of both parties, most of the state’s major labor unions and nearly all of its major business organizations. Gov. Tina Kotek told one news outlet, Willamette Week, that the proposal “would punch a huge hole in the state budget.”

It faces opposition as well from organizations that generally support guaranteed income programs and oppose regressive tax policies that fall unduly on people with lower incomes. One such group, Tax Fairness Oregon, called it “a hot mess.” The measure appeals to many of the principles they support, said the organization’s president, Jody Wiser, including increasing taxes on large businesses that use loopholes or tax shelters to avoid paying corporate taxes, and ensuring that people have enough money to live with dignity.

That’s where the common ground ends, though.

“If they had focused it towards helping people in need and come up with something that was fair amongst all businesses, that would be one thing,” Wiser said, pointing to how some large, privately held corporations obscure their incomes with sophisticated accounting. “But that’s not what they did.”

A coalition of business groups opposing the measure says it fears the rebate will drive up consumer costs far more than sales taxes would; Oregon does not currently have a retail sales tax. Because it’s a tax on gross receipts, businesses would pay whether they were making large or small profits or losing money, argues the organization, Defeat the Costly Tax on Sales. Grocery stores, which have low margins but high sales, would be hit especially hard, the group says. The coalition has raised more than $9 million to oppose the rebate.

It would “make Oregon businesses less competitive and drive up costs even higher for Oregon consumers,” Angela Wilhelms, president and CEO of the advocacy group Oregon Business & Industry, said in a statement.

Backlash and support

Already, there’s a backlash against cash assistance programs. Several red states this year passed legislation banning cities or counties from creating basic income programs that provide direct cash payments to people with low incomes, arguing that they are handouts that disincentivize work. In Texas, the Republican attorney general sued to block Harris County from enacting a pilot program to pay $500 per month to 1,900 people with low incomes in Houston. Arizona’s and Wisconsin’s Democratic governors this year vetoed Republican-backed legislation that would have banned basic income programs.



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By Erika Bolstad, Stateline.org

PORTLAND, Ore. — The pitch intrigued nearly everyone who encountered a petition gatherer seeking signatures in Oregon: Would you like a $750 annual rebate from the state, for each member of your household? Paid for “by making giant corporations pay their fair share”?

Voters signed on to the concept in droves, catapulting the initiative commonly known as the Oregon Rebate to November’s ballot. If passed, it would make Oregon the first state to increase the minimum tax on large businesses and send the cash to all residents, guaranteeing them a minimum income.

“I’m not exaggerating here, but we got an extremely positive response,” said Antonio Gisbert, a spokesperson for the Yes on Measure 118 campaign behind the Oregon Rebate. “The secret sauce is that it’s a pretty clear concept.”

But Oregon’s measure has drawn significant bipartisan and business opposition. And even supporters of basic or guaranteed income programs worry that Oregon’s broad measure, if passed, would expose budgetary pitfalls that will doom its success and deter other states from starting their own programs.

Interest in basic or universal income programs has grown in recent years as policymakers and activists have sought ways to fight poverty by giving people regular cash payments. Guaranteed income programs generally focus on specific populations in need, and universal income programs give everyone the same amount of basic cash, regardless of income or other socioeconomic status. States such as Minnesota and Washington have considered statewide anti-poverty pilot programs to study the effects of paying people cash; more than 150 such programs or pilots have launched nationwide.

Many of the pilot programs target specific populations, including single mothers, homeless youth and those who’ve faced historic disadvantages. Advocates say that giving residents no-strings-attached cash improved people’s lives by allowing them to spend government and philanthropic aid as they see fit, often on housing, medical emergencies or other necessities.

Several cities, including New York and San Francisco, have piloted guaranteed income programs for the arts. In Seattle, it’s part of an effort to address growing affordability issues that continue to have an effect on the vibrancy of the city’s arts scene.

Silicon Valley entrepreneurs have been especially big proponents of universal income programs. Sam Altman, the CEO of OpenAI, the parent company of ChatGPT, has sponsored a study of such efforts, in part to allay concerns about the effect of artificial intelligence on employment. The study yielded largely positive results, with some caveats. The programs had no measurable effects on physical health, for example.

But those who oppose universal income programs argue they’re handouts that discourage people from working, or that they’re costly endeavors that apply mere Band-Aids on complex social issues and don’t do enough to address their systemic roots.

In a 2022 study, for example, researchers examined the financial, psychological and physical health effects of giving people one-time cash grants of up to $2,000. They concluded that the money did not significantly improve the recipients’ lives — in fact, it “made participants’ (unmet) needs more salient, which caused distress.”

But that was a one-time grant. Basic and guaranteed income programs got a boost from a 2019 experiment in which researchers observed improved financial stability and health among 125 people who lived in low-income neighborhoods in Stockton, California, and received $500 per month for two years. The idea got a big lift as well from entrepreneur Andrew Yang, who ran for president in 2020 on the “Freedom Dividend,” a universal basic income proposal that would have paid all American adults $1,000 a month.

The Oregon measure

If the Oregon Rebate passes, the state would increase by 3% the minimum tax on corporations with in-state sales greater than $25 million to pay everyone the rebate, regardless of income. From the proceeds, most Oregon residents would receive an annual tax rebate, but some people with lower incomes could opt for a direct cash payment.

The state estimates 84% of people would choose a rebate via a refundable tax credit on personal income tax returns, reducing their tax bill. Rebates were estimated at $750 when proponents first began seeking signatures to put the issue to voters; a new state analysis estimates the rebate is likely to be as much as $1,160 in 2026 and $1,605 by 2027.

Despite the allure of cash, the ballot measure has met with widespread opposition, including from the Democratic governor, the legislative leadership of both parties, most of the state’s major labor unions and nearly all of its major business organizations. Gov. Tina Kotek told one news outlet, Willamette Week, that the proposal “would punch a huge hole in the state budget.”

It faces opposition as well from organizations that generally support guaranteed income programs and oppose regressive tax policies that fall unduly on people with lower incomes. One such group, Tax Fairness Oregon, called it “a hot mess.” The measure appeals to many of the principles they support, said the organization’s president, Jody Wiser, including increasing taxes on large businesses that use loopholes or tax shelters to avoid paying corporate taxes, and ensuring that people have enough money to live with dignity.

That’s where the common ground ends, though.

“If they had focused it towards helping people in need and come up with something that was fair amongst all businesses, that would be one thing,” Wiser said, pointing to how some large, privately held corporations obscure their incomes with sophisticated accounting. “But that’s not what they did.”

A coalition of business groups opposing the measure says it fears the rebate will drive up consumer costs far more than sales taxes would; Oregon does not currently have a retail sales tax. Because it’s a tax on gross receipts, businesses would pay whether they were making large or small profits or losing money, argues the organization, Defeat the Costly Tax on Sales. Grocery stores, which have low margins but high sales, would be hit especially hard, the group says. The coalition has raised more than $9 million to oppose the rebate.

It would “make Oregon businesses less competitive and drive up costs even higher for Oregon consumers,” Angela Wilhelms, president and CEO of the advocacy group Oregon Business & Industry, said in a statement.

Backlash and support

Already, there’s a backlash against cash assistance programs. Several red states this year passed legislation banning cities or counties from creating basic income programs that provide direct cash payments to people with low incomes, arguing that they are handouts that disincentivize work. In Texas, the Republican attorney general sued to block Harris County from enacting a pilot program to pay $500 per month to 1,900 people with low incomes in Houston. Arizona’s and Wisconsin’s Democratic governors this year vetoed Republican-backed legislation that would have banned basic income programs.



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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.

The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making

The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.

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