This January 26th, vote YES on 66 & 67 to protect schools, health care, and public safety!
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A Call for Accuracy

Nov 9, 2009Bookmark and Share

In a recent editorial, the Oregonian stressed the importance of accuracy regarding these measures, stating, “[I]t's not too soon to urge the campaigns to stick to the facts and avoid claims and tactics that could further harm Oregon's economy and its reputation as a place to do business.” Vote Yes for Oregon wholeheartedly agrees. Too often, claims are made that are known to be false.

Here are some claims that you may encounter:

Fiction: “If these taxes are implemented, businesses, especially small businesses, and rich Oregonians will leave the state.”

Fact: The modest increase still leaves Oregon with the lowest corporate taxes on the west coast, and among the lowest in the nation. No other state on the West Coast has a lower overall tax burden for business.

The personal income tax applies only to taxable income that exceeds $125,000 for single filers and $250,000 for households, heads of households, and surviving spouses. Research has shown these marginal changes have very little effect on residency choices. According to the non-partisan Legislative Revenue Office, only a few rich people might leave, and “the effect will be marginal.”

Fiction: Economists have estimated that these measures “would cost thousands of jobs.”

Fact: This statement is wholly inaccurate. In fact, mainstream economists argue just the opposite. Measures 66 and 67 will protect and create Oregon jobs. The non-partisan Legislative Revenue Office released a report on the measures, showing that raising taxes on corporations and the richest households is better for Oregon’s economy than cutting critical state services. That finding was echoed by an open letter from three dozen prominent Oregon economists.

In short, Measures 66 and 67 keep hundreds of millions of dollars circulating in Oregon’s economy, at local businesses, increasing demand and protecting jobs when we need them most. Moreover, the measures provide a tax cut to over 270,000 unemployed Oregonians, and will protect and create jobs as they improve the economy.

Fiction: “The State government could have cut spending instead of raising taxes.”

Fact: 93% of the state budget pays for education, human services/health care, and public safety. Due to the global financial crisis, the state was faced with about a $4 billion budget shortfall. In order to balance the budget without hurting vital services or middle-class Oregonians, the legislature first cut $2 billion in state spending, raised a further $1 billion from federal stimulus funds, and then turned to targeted taxes to raise the remaining revenue necessary to preserve such essential programs as long-term care for seniors, K-12 education, and public safety services throughout the state.

Fiction: “These are permanent tax increases, they could have been temporary.”

Fact: Measures 66 and 67 are partly temporary, to address the once-in-a-lifetime financial crisis, and partly permanent, in order to restore fairness into Oregon’s tax system. Currently, two-thirds of corporations doing business in Oregon pay just $10 a year in state income taxes. At the same time, the average Oregon family of four pays $3100 in state taxes each year.  In order to prevent more of a burden being placed on Oregon’s middle-class families, now and in the future, Corporations must contribute more than $10 to the future of our state.

Fiction: “Public employees didn’t have to tighten their belts like the rest of us.”

Fact: Public employees – such as teachers, state troopers and public health workers – are sharing in the sacrifice of $2 billion cut from the state budget. Many state workers are taking an average of 13 unpaid furlough days this biennium. That’s a pay cut of 2.5% for workers who provide essential services, and who mostly make less than $41,000 per year. Public employees are also going without cost of living adjustments, as well as making other concessions in order to preserve jobs and keep schools open.

Posted in Truth Squad

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