Mattias Gugel - Vote NO on Measure

Director of State External Affairs at National Taxpayers Union (NTU)

New Op-Ed: The $1,600 rebate trap: How Measure 118 will increase daily cost of life of Oregonians (Bend Bulletin)

 

Ballot Measure 118, which would slap a new tax on businesses in Oregon and end up raising prices for Oregonians.

 

Expert/Guest: Mattias Gugel is the Director of State External Affairs at National Taxpayers Union (NTU)

 

POV: 

• Ballot Measure 118 proposes a new tax on large businesses to fund a $750 annual rebate for every Oregonian. This is will only drive up the costs of life essentials.
• Measure 118 is a Trojan horse for higher costs on essential items — groceries, rent, utilities. A short-term rebate won’t erase the permanent price hikes or future taxes needed to fund it. Don’t trade short-lived relief for years of hardship. 
• Introducing a tax on gross revenue will have unintended consequences. Businesses with thin profit margins, like grocery stores and local retailers, will be taxed on total sales, not profits.

• A typical Oregon grocery store operates with an average net profit margin of slightly more than 1 percent. On a grocery store bill of $100, its profit is slightly more than a dollar. Under Measure 118, the store would be taxed $3 for that one grocery bill. This is about triple the store’s profit, just for the new tax created under this ballot initiative. 
• To cover this additional cost, businesses will likely raise prices. So, while a “free” $750 check might sound fantastic, it’s not so thrilling when you’re shelling out more for your morning pour-over and produce at the neighborhood co-op.

• Measure 118 is anything but fair. Middle- and lower-class Oregonians will end up paying the price. You’ll see your grocery bill and rent go up, and what will you have to show for it? More government control, taxes, and less of what matters — freedom and opportunity.
• Voters should reject Measure 118 at the ballot box and focus on policies that foster prosperity and opportunity for all. Oregonians deserve policies that deliver lasting prosperity, not fleeting rebates followed by long-term pain.
• Oregon’s history has shown that, once a government program starts, it rarely shrinks and often tends to grow. This could lead to future tax hikes to cover the increasing costs of the rebate program, leaving Oregonians to pick up the tab.