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News & ArtsWednesday, January 27, 2010
Politics Oregon Raises Taxes for Corporations and the Wealthy
Posted by Dominic Holden on Wed, Jan 27, 2010 at 8:21 AM
Jen mentioned this story in the morning news, but it's worth noting that we should do this in Washington:
Oregon voters bucked decades of anti-tax and anti-Salem sentiment Tuesday, raising taxes on corporations and the wealthy to prevent further erosion of public schools and other state services.The tax measures passed easily, with late returns showing a 54 percent to 46 percent ratio. Measure 66 raises taxes on households with taxable income above $250,000, and Measure 67 sets higher minimum taxes on corporations and increases the tax rate on upper-level profits.
The results triggered waves of relief from educators and legislative leaders, who were facing an estimated $727 million shortfall in the current two-year budget if the measures failed.
Conservative critics will claim that wealthy folks and businesses are the only tent pole holding up the economy. Raising taxes on their uppermost profits and earnings in Washington—even a smidgen—would drive them away forever and devastate the economy. The money trickles down, right? Uh huh. If education and public health continue to deteriorate (which they are without these taxes), both with expensive consequences, we're truly screwed. Oregon is right for making sure it can provide basic services that sustain its residents.
Our Oregon affiliate, The Mercury, has more details on the night. And in Olympia, Governor Christine Gregoire has issued a statement:
Oregon voters met the challenge of these difficult times and clearly said that schools, healthcare, public safety and other essential services cannot be forsaken. It is gratifying to see that the public understands the importance of preserving services to the most needy and providing education to the next generation—especially now when those efforts are most needed.
So here's what we need to do, Washington. Tim Eyman, one of our own, loves to run initiatives that bankrupt the state. Loves 'em. He also likes to make money off his initiatives. How much would it cost to buy him out—give him enough dough that he doesn't care which side of the tax debate he's on—and get him to run a couple initiatives like Measure 66 and Measure 67 in Washington? Call me a dreamer (call me worse, if you like) but maybe we could hatch two birds with one egg: Divert Eyman from his plot to destroy the state and pull the emergency brake on our careening-to-the-depths-of-hell budget shortfall.
1
there's nothing wrong with people who are successful having to support the bastard offspring of slacker potheads like yourself via taxes
great idea
great idea
3
Yeah, raise taxes on corporations so they take their jobs out-of-state. Lefties never think of the consequences.
4
yeah, dumb lefties, there are NO corporations and NO jobs in NY CAl. Canada France Germany UK Austria Japan Australia etc. they are economic wastelands like USSR and Cuba. Stupid uninformed lefties! Dn't they realize ALL The corporations have moved all the jobs to Somalia where there is no government at all, or to the upper Amazon Basin where there are no taxes?
Don't they realize that all the states with income taxes are the poorest ones in the USA? Damn they're so stupid and uninformed.
Don't they realize that all the states with income taxes are the poorest ones in the USA? Damn they're so stupid and uninformed.
5
Mr. Holden, seriously put down the bong. Having Tim Eyman's name on anything useful, whether it is a marijuana legalization initiative or an initiative for an economic recovery scheme is a fool proof way to make sure it does not pass. Furthermore, giving this guy money and encouraging him is even worse.
6
@3 Where have you been? Corporations are not only sending jobs out of state but out of the country. Taxes aren't going to make a difference when they can pay someone a 1/3 of what they would have to pay an American worker. Don't fool yourself. It's not about the taxes, it about exploiting cheap labor. The taxes are only an excuse to continue to screw over the American worker.
7
It would be even more gratifying to see that the public understands the importance of preserving services to the most needy and providing education to the next generation and demonstrates that understanding and committment by taxing THEMSELVES to pay for it—
10
We should do this today.
All corporate tax subsidies and exemptions should be expired without a line item vote of the citizens and all individuals and persons, including corporations, should be subject to an income tax with a basic $500,000 exemption (and no others).
Our WA Constitution allows our House and Senate to pass such a 1 percent flat tax today.
Now.
This minute.
All corporate tax subsidies and exemptions should be expired without a line item vote of the citizens and all individuals and persons, including corporations, should be subject to an income tax with a basic $500,000 exemption (and no others).
Our WA Constitution allows our House and Senate to pass such a 1 percent flat tax today.
Now.
This minute.
11
Raising the corporate tax rate doesn't hurt businesses, they just make sure to pay out all extra profits as employee bonuses. Write it off as a payroll expense, no problem.
Thankfully they remembered to raise the taxes on the guys getting the giant bonuses, nice.
Thankfully they remembered to raise the taxes on the guys getting the giant bonuses, nice.
12
At first I thought that the word "corporations" was misspelled in the headline (which would be churlish to point out) but now I'm wondering if the spelling was deliberate. Given the fact that corporations are practically people now, corporatons - like automatons - now seems appropriate. I can't wait to shake a sucker-covered limb of the Monsanto corporaton and congratulate it on a job well done.
13
One thing to keep in mind when applying what happened here in Oregon to Washington, is that Oregon had one of the lowest overall tax burdens on businesses in the country (I think we were 48th, and then with 67 are now 46th). We also have a relatively low overall tax burden on individuals (can't remember the ranking off the top of my head).
Not that that stopped the "no on 66/67" people from claiming that every business was going to leave the state, small businesses were going to have to close (over a $140 increase in taxes, that only a very small number of them - those organized as C-Corps - would have to pay), etc. But, still, I think our low overall tax levels helped to make the argument, and I'm not sure where Washington stands in that respect.
Not that that stopped the "no on 66/67" people from claiming that every business was going to leave the state, small businesses were going to have to close (over a $140 increase in taxes, that only a very small number of them - those organized as C-Corps - would have to pay), etc. But, still, I think our low overall tax levels helped to make the argument, and I'm not sure where Washington stands in that respect.
14
The problem with bills/initiatives that impose new, steep taxes on the uber-rich in a state by state, ad hoc manner is that these are the folks can relocate the easiest.
A number of years ago, the owner of Food Services of America got his underwear in a bunch over Washington's estate tax system. He pulled the company's headquarters out of West Seattle and moved to Arizona.
I am not saying that these people don't deserve to shoulder a heavier burden. You just have to be aware of the unintended consequences careful that you don't shoot yourself in the foot.
A number of years ago, the owner of Food Services of America got his underwear in a bunch over Washington's estate tax system. He pulled the company's headquarters out of West Seattle and moved to Arizona.
I am not saying that these people don't deserve to shoulder a heavier burden. You just have to be aware of the unintended consequences careful that you don't shoot yourself in the foot.
15
I think it very unlikely that there will be some sudden mass migration of businesses and the wealthy from Oregon now that these have passed. It's more likely that they will complain loudly and leave it at that. Business always complains whenever they are asked to pay their fair share as corporate citizens. The wealthy can live wherever they want and if there was something that drew them to Oregon that "something" is still probably there.
I'm not exactly poor myself and I live where I do because I like it here. The tax structure never even entered my mind when I moved here.
I'm not exactly poor myself and I live where I do because I like it here. The tax structure never even entered my mind when I moved here.
18
@15 - don't be surprised if the housing market in Vancouver WA booms over the next few months. That should help our revenues too, since we have taxes on property transactions.
19
If corporations are allowed to continually make profits while paying people the least possible, then dumping their waste in the most convenient fashion possible, then they will not be upholding their BASIC RESPONSIBILITIES. If you think corporations have no responsibilities beyond their own goals, then you haven't thought through that very clearly.
Corporate power needs to be subsumed under the goals of the greater good. If they aren't we will continue to see topsoil loss, clear-cuts, oil spills, Pacific Garbage Patches, and plastic BPA-type toxins in everyone's body.
Corporations care about one thing: Their Own (immediate) Profit.
Humans care about many things, but most importantly: The Common Good, and the Future.
These two things aren't necessarily mutually exclusive, but they often seem to run that way with a greed-based "market" system, and postive-interest currency.
Either we control them, or they control us. I say we keep working for the former.
Merely taxing them to an appropriate standard isn't enough. But its a start.
Corporate power needs to be subsumed under the goals of the greater good. If they aren't we will continue to see topsoil loss, clear-cuts, oil spills, Pacific Garbage Patches, and plastic BPA-type toxins in everyone's body.
Corporations care about one thing: Their Own (immediate) Profit.
Humans care about many things, but most importantly: The Common Good, and the Future.
These two things aren't necessarily mutually exclusive, but they often seem to run that way with a greed-based "market" system, and postive-interest currency.
Either we control them, or they control us. I say we keep working for the former.
Merely taxing them to an appropriate standard isn't enough. But its a start.
20
@16 - What's wrong with Detroit couldn't possibly have something to do with the fact there hasn't been a decdent quality American car since the '70's, now could it?
Tim Eyeman should be shot, not bought.
Tim Eyeman should be shot, not bought.
21
Detroit was a much more "complicated" issue and doesn't really apply here. Detroit just got too complacent and thought they had some divine place at the top of the corporate food chain in the US.
22
@14,
I wonder how much money he and his company have lost in the real estate debacle down there. No one in their right mind wants to live in Arizona.
There's a common thread among states with low taxes: they're poor and they're shitholes. Let the few petulant rich folks in Oregon move to Alabama if they're that butthurt. Most will stay put.
I wonder how much money he and his company have lost in the real estate debacle down there. No one in their right mind wants to live in Arizona.
There's a common thread among states with low taxes: they're poor and they're shitholes. Let the few petulant rich folks in Oregon move to Alabama if they're that butthurt. Most will stay put.
24
As Progressive States Network notes "progressive tax increases are a far better alternative to massive budget cuts. The latter can cause extensive damage to the economy by reducing consumer spending, exacerbating job losses, and hurting working families who rely on public services. Additionally, progressive tax reform does not have the detrimental economic impact that opponents often cite. In fact, several states that raised taxes on the wealthy experienced higher economic growth than other states and did not see an out-migration of wealthy residents. Just in 2009, Connecticut, Colorado, Delaware, Hawaii, New Jersey, New York, North Carolina, Rhode Island, and Wisconsin instituted either a permanent or temporary reform of personal income taxes. Over 10 states considered or enacted business tax increases to help deal with budget deficits last year as well."
see http://www.progressivestates.org/node/24… for more information
see http://www.progressivestates.org/node/24… for more information
25
The idiocy of thinking that raising taxes on business is separate or different from raising taxes on the individual astounds me. Businesses do not and never have paid taxes to any government entity. Businesses collect taxes from their customers and pass them on to the government. This is a stealth or hidden tax on the individual income earner. Wake up and smell the bull squeeze you’re shoveling. In addition to that, progressive taxes are a product of Karl Marx and his Communist Manifesto. You would do well to do a little more reading and a lot less spouting off in both verbal and written form.
Learn of the FairTax at www.fairtax.org and from "The FairTax Book" and "FairTax: The Truth" both by Neal Boortz and Congressman John Linder.
Learn of the FairTax at www.fairtax.org and from "The FairTax Book" and "FairTax: The Truth" both by Neal Boortz and Congressman John Linder.
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