As we approach this critical election, Oregonians must confront Measure 118, which proposes the largest tax increase in our state’s history. The Springfield Area Chamber of Commerce joins a diverse coalition of businesses, nonprofits, unions, and elected leaders in opposing this measure. Simply put, Oregon cannot afford this tax, which would result in higher prices for consumers, diminished competitiveness for local, Made in Oregon products, and significant challenges for small businesses.
If approved, Measure 118 would impose a 3% sales tax on businesses with annual sales exceeding $25 million, generating a staggering $6.8 billion annually. While the measure claims to provide rebates to all residents who meet a minimal residency requirement, it does so without regard for income or need. This blanket approach fails to address the diverse economic realities of the state or recognize the escalating costs it will pose on local, small businesses.
Particularly concerning is that this tax is based on sales rather than profits, meaning businesses will owe money even if they are struggling. It is estimated that products could be taxed multiple times along the supply chain, ultimately hitting consumers the hardest. Essential goods like food, medicine, fuel, electricity, and housing will become more expensive, straining tight household budgets.
Small and medium-sized businesses, often operating on razor-thin margins, will feel the brunt of this tax. Restaurants and retailers, in particular, may be forced to raise prices, cut jobs, or even close their doors. This is not just an economic issue; it is a matter of community well-being. Oregon households spend an average of $11,000 more yearly compared to just three years ago. The additional costs stemming from Measure 118 would exacerbate the already high cost of living, making it even harder for families to make ends meet.
Moreover, according to the Legislative Revenue Office, the measure could result in the loss of approximately 28,000 jobs by 2030. The economic landscape is already challenging, and this tax would disproportionately affect low- and fixed-income households, deepening the inequalities it aims to address.
Keep in mind local governments, schools, and nonprofits will also bear the brunt of these increased costs, ultimately further burdening taxpayers and working families. The economic repercussions on already stretched public and nonprofit budgets are significant and cannot be overlooked, one of the many reasons why many elected leaders are voicing their opposition.
Oregonians deserve an economy where businesses thrive and families can afford essential goods. Vote NO on Measure 118 to protect our community and safeguard our economic future.
Vonnie Mikkelsen is the president and CEO of the Springfield Area Chamber of Commerce.
