Our “fellow citizens” will pay an additional tax – the higher of the Minimum Corporate Tax, OR the State Corporate Tax for C-Corporations.

The Minimum tax (if their taxable income has been reduced through the many means available) is AT MOST 0.1%. That’s $1 on every $1,000 in sales. It is like asking if someone who makes $20,000 a year if they have $20. Any responsible person should have at least that much savings every year, right?

Or, if they have taxable income, they will pay the State tax instead. It jumped 1.3%, and drops over time. That’s outrageous, right? Well, consider that the old State tax rate was 6.6% – for every corporation, regardless of taxable income. Look at our individual State income tax rates – 6.6% is the tax rate paid by your neighbor with an AGI of $10,000 a year. For individual citizens, who breathe air and eat food, the tax rate increases as AGI increases (progressive tax). But not for corporations. At worst, Measure 67 increases the rate to a flat 7.9% – the same tax rate paid by your neighbor with an AGI of $19,000 a year.

What now? I’d think that people would be outraged that multi-million dollar companies pay a lower tax rate than the minimum wage citizens they employ. Too bad people don’t actually read the Measure.

Has nobody notice the big glaring EXEMPTION that is available so these “HIGH INCOME” ($125k a year) business owners and these outrageously arrogant corporations can avoid paying this New Oregon Wealth Tax?

Maybe not all, but many of these business owners can qualify to avoid this tax, in fact they may be able to pay even less that previously expected because of the exemption.

While I am celebrating that the backs of business owners won’t be broke trying to support the wasteful spending habits of the politicos that hold your childs education as ransom everytime they want to spend more than is available on their pet projects or to pad the wallets of their friends, or simply because they are too “involved” to actually be frugal with their spending habits, others may be at least disappointed that knowledgeable business owners can adapt to these new inconveniences.

If you are in the claimed 3% that will shoulder this 700 million dollar padding for the Legislature ask your accountant about the New Oregon Tax Exemption. If he/she doesn’t know about it, call me, Richard Fritzler at 1 877 NCS PRO1. We can provide an analysis for your unique business situation and see if you qualify.