The Anderson Economic Group recently released their 2016 State Business Tax Burden Rankings report, and for the third year running Oregon is ranked dead last.
Several organizations put out state tax rankings, but AEG’s report is the best measure of effective business taxes. That’s because they total up all the taxes businesses pay, and compare that amount to the total corporate profits generated in the state. That’s the best way to compare effective tax rates. Other rankings, like those published by the Tax Foundation, ignore the actual amount of taxes companies pay and focus instead on incidental factors.
Most state rankings have a fair degree of variability, with states jostling around a bit in the rankings year to year. That Oregon has remained at the bottom of these rankings for the past three years is a strong sign of just how little corporations pay in taxes, compared to the profits they make in the state.
While Oregon lets big corporations skate by and pay low minimum taxes, our schools and services remain critically underfunded. If Oregon’s corporate tax collections were in line with the rest of the country, we’d have the revenue we need to fund strong schools and services that will grow our economy and help hard-working Oregonians get ahead, protect their health, and retire with dignity.
Measure 97 is the solution to Oregon’s low corporate taxes. By focusing a tax increase only on large C corporations, those doing more than $25 million in Oregon sales, Measure 97 will raise significant revenues for the investments that grow Oregon’s economy, all while protecting smaller businesses that are already paying their fair share.