As we celebrate the New Year the wonderful Oregon legislature has passed a new gross receipts tax on businesses which is really just a sales tax on all retail goods. The tax is .57% on every dollar sold over 1 million dollars, and the money is supposed to earmarked for schools. While the Corporate Activity Tax is levied on businesses, the burden of the tax will be placed on Oregon’s consumers, workers and shareholders. Taxes on gross receipts cause what economists call “tax pyramiding,” when the same economic value is taxed multiple times as goods are produced and sold to consumers. As the tax adds upon itself, prices for consumers rise. Oregon’s Legislative Revenue Office estimates that prices will rise by about 0.40 percent. That doesn’t sound like a lot, but it will add up quickly when most items a household purchases are impacted. What is really sad is the people of Oregon have overwhelmingly voted against a sales tax when it has been on the ballot, but Oregon lawmakers have decided once again that they know better than the will of the people. I hope this money that is raised helps our crumbling school system, but I’m skeptical with the huge PERS retirement plan not being addressed. I think it is important that if you live in an area that has a state lawmaker who voted in favor of this tax you should call his office and express your frustration. I have a fear that if this tax falls short of raising enough funds then the legislature will just continue increase the tax. I wish all of our customers a great 2020 and thank you for your business.
Cordially, John Buller and Sons