Examining the pros and cons of Oregon Measure 118

PORTLAND, Ore. (KOIN) -- One of the most drastic tax changes in Oregon history will be on the ballot in November. If it passes, it could put hundreds, maybe even thousands of dollars in your family's pocket.

Ballot Measure 118 is already getting a lot of attention. Especially from opponents who have pumped almost $6 million into the campaign to defeat it.

Labeled as the "Oregon Rebate," Measure 118 would raise the corporate minimum tax by 3% on sales exceeding $25 million. The state revenue office says that's an extra $7 billion a year.

The 'Yes on Measure 118' campaign says it would mean a $1,600 annual rebate for every Oregonian - essentially a universal income.

Measure 118 chief petitioner Antonio Gisbert, as well as leader of the 'No on 118' campaign Angela Wilhelms, discussed the implications of the measure on this week's Eye on Northwest Politics.

Gisbert asserts the impetus for this measure comes from corporations not paying their fair share of taxes in Oregon.

"The minimum corporate tax rate after $25 million is less than 0.12%. And that is, to us, offensively low compared to what we pay in taxes between 4 .75 and 9 .9%. The second theme that emerged is that we all felt it was ever harder to make ends meet," he said. "When we all have an extra 1,600 bucks or so our Main Street economies are going to flourish. Our overall economies going to flourish. We're going to bring everybody up. We're all going to do better."

Most major business organizations and legislative leaders in the state - including Governor Kotek - are against Measure 118, from grocery retailers to major industries including Standard Insurance and Daimler trucks.

Wilhelms believes this stems from the fact that when you tax sales, consumers will face higher prices in a time when Oregonians are already paying around $11,000 more per year than three years ago. Additionally, she said this could affect multiple stages of the Oregon manufacturing supply chain. Further, she is skeptical of where the money will actually end up.

"There's no guarantee Oregonians will see this money," she said. "The way the measure was written, it means that the legislature can amend it and actually redistribute the money or reuse the money for other purposes without any accountability. So that's why you're seeing a growing and diverse and large coalition of people uniting in opposition to Measure 118. Including most of the state legislators that are out there, at least the leadership of the state legislature."

In response to the argument that Measure 118 will cause inflationary pressures in which people will end up paying more at the point of sale, Gisbert says it's a small price for corporations to pay.

"We're only talking about increasing the minimum corporate tax rate after $25 million," he said. "So it's three cents for every dollar after a corporation has made 25 million bucks in the state of Oregon. A couple important things: It doesn't matter where the corporation is based."

He continued, "Comcast, for example, is based in Philadelphia. They're going to pay, after this, 3% on all their sales in the state of Oregon after $25 million. Their first $25 million basically remains still tax-free, which is a privilege that I do not have. An Oregon-based corporation only has to pay the 3% after $25 million in Oregon sales."

Above all, Wilhelms asserted that her main opposition to the measure is the economic rule of "no free lunch."

"I think when people go to know on measure118.com, read the facts, see that growing list of coalition members, they're gonna understand, again, free money's never free," she said. "They're going to pay for this largest tax increase in Oregon's history. They're going to pay for this tax on sales. And they're probably also going to join our coalition and we hope they will. We hope they vote 'no.'"

Gisbert, on the other hand, says no one on his campaign is talking about "free money."

"We are very explicit that what Measure 118 does, first and foremost, is that it corrects an injustice, which is that corporations are currently not paying their fair share in taxes," he asserted. "We're going to grow the economy a ton by giving people money and trusting people to spend that money the best they want or the best they can. We might be going out to dinner, fixing their car, paying rent, groceries or whatever it is, right? We are empowering people to have a better life for themselves and their community."

Watch the full interviews in the videos above.