Groups in Portland, Oregon claim they have amassed enough signatures to ensure a tax hike initiative qualifies for the ballot this November. Under the proposal, retailers with revenue over $1 billion (and at least $500,000 generated within Portland) would be subjected to a 1 percent city business license surcharge. While proponents argue that this tax will only apply to 120 large companies, it is likely all Portland residents will feel the negative consequences.
The $30 million in estimated new tax revenue is proposed to finance clean energy projects across the city and establish job training programs for the disadvantaged. While advocates for this initiative use the interests of lower-income individuals to justify this business tax, it would disproportionately harm the economic well-being of those they are aiming to help. If empirical evidence and basic economics apply, increasing taxes on job creators would result in fewer employment opportunities for job seekers
The prospect of added business costs will likely result in those costs being passed along to consumers through higher prices. Higher costs for goods and services as a result of government mandates function as a regressive tax, impacting Portlands poorest the most.
If the groups behind this business tax genuinely want to enrich the lives of lower-income individuals, they should coalesce around policies that would foster economic growth and incentivize the creation of new businesses and new jobs.
NTU looks forward to analyzing this ballot initiative more in depth later in the year when NTU releases our annual Ballot Guide publication where we explore every tax and fiscal ballot measure across the country.