Oregon businesses are spending millions to fight a UBI funded by corporate taxes

• Oregonians will soon vote on a corporate tax increase to provide them with a universal basic income.
• Companies have spent millions to oppose the 3 percent tax on corporate sales over $25 million.
• Both Democrats and Republicans say the measure could hurt the state budget and essential services.

Oregon businesses are spending big to oppose a ballot measure that would tax corporations and give residents $1,600 a year in a rebate program that is similar to a universal basic income.

And lawmakers, both Democrats and Republicans, seem to agree. They say the ballot measure is fraught with problems and could hurt the state budget.

However, whether the state passes Oregon Measure 118 will ultimately be up to voters.

Also called the Oregon Rebate, the measure would raise the state’s minimum corporate tax rate by 3 percent after a company makes $25 million in revenue in the state. It would then distribute that money to all Oregon residents, including minors and dependents, who have lived in the state for at least 200 days.

The rebate “levels the playing field” for Oregonians, more than 170,000 of whom signed a petition to get the measure on the November ballot, according to the Oregon Rebate website.

California donors were the largest source of funding for the Oregon Rebate PAC, which raised hundreds of thousands of dollars in support of Measure 118, state filings show. As for the opposition, Oregon businesses have collectively raised $9.3 million to fight it.

An unusual display of bipartisan opposition

Democratic Gov. Tina Kotek told Willamette Week in July that the ballot measure “may look good on paper, but its flawed approach would blow a huge hole in the state budget and jeopardize essential services for low-wage and working families.”

A united front of Democratic state lawmakers — who are more likely than their conservative counterparts to support the kinds of basic income programs that have gained traction nationally — is also fighting the ballot measure. They fear it could stifle job growth and “cause cuts to essential services like road maintenance, firefighting and addiction recovery,” the state Senate Democratic Leadership Fund said in an August statement.

The state Republican Party called the measure “misleading, misguided and harmful to Oregonians and small businesses in Oregon,” in a news release Saturday.

“If Measure 118 is passed, the $1,600 ‘rebate’ each taxpayer would receive would be dwarfed by the need to pay even higher prices for food, medicine, utilities, gas, clothing and just about everything else struggling already afford Oregonians,” the party. said. He added that the cut could drive companies out of Oregon.

The Oregon Legislative Revenue Office, a nonpartisan entity, released a report this month that found low-income rebate recipients could be disqualified from getting help from federal programs like Temporary Assistance for Needy Families and Medicaid.

“If there were no changes and Measure 118 becomes law, that alone will create a $1.3 billion hole in the general fund,” Chris Allanach, the state’s legislative revenue officer, told The Oregonian. “The Legislature could change it, but that has its own problems.”

Despite months of opposition from politicians and business leaders, Antonio Gisbert, the petitioner behind the ballot measure, argued the cut would be net neutral.

“In short, General Fund dollars do not fund rebates, all implementation and related costs are paid for by new revenues. Poverty reduction lowers the demand for services, and the increased economic stimulus will boost the state’s economy and lead to increased tax revenues. and General Fund resources,” Gisbert told Business Insider in an August email. He did not immediately respond to a request for further comment.

Fight for UBI

Universal basic income programs provide recurring and unconditional payments to people regardless of their economic status. Measure 118 would make Oregon the second state in the United States to have some form of universal basic income at the state level, joining Alaska. The Alaska Permanent Fund distributes annual funds to all Alaskans.

Supporters of these programs say they can help poor residents pay for basic needs and stimulate the economy, while their opponents – most commonly conservative lawmakers – argue they are closer to “socialism” and offer meritless payments.

In his earlier comments to Business Insider, Gisbert said he remains optimistic that voters will support the measure in the general election.

“It appears that some of these elected (officials) are more accountable to corporations and corporate interests than to the interests of ordinary Oregonians,” Gisbert said. “We are very committed to instituting some degree of corporate tax justice.”

Gov. Tina Kotek did not immediately return requests for comment from Business Insider.