Sponsored by Lane Powell

It's time to end Oregon’s "corporate tax dodge"

| Print |  Email
Archives - May 2006
Monday, May 01, 2006

Bill Thorndike of Medford Fabrication challenged the business community, saying, “It’s time we start giving more to schools than lip service or the random auction item, and start putting our money where our mouths are” [Time to step up, FIRST PERSON, March]. I couldn’t agree more. Thorndike’s solution, though, won’t cut it.

While facilitating an increased involvement by parents is necessary for a better education system, it is not sufficient. There is an equally critical role for Oregon’s business community that Oregonians must not overlook: Corporate Oregon needs to share fairly in financing public services. We cannot volunteer our way out of what is fundamentally a flawed financing structure for vital public services.

What Oregon schools need is a business community that is willing to pay its fair share of the cost of providing the basic public services it relies upon every day. Corporate Oregon needs to stop dodging its responsibility.

Over the last 25 years, Oregon’s corporate income tax has plummeted both as a share of the state economy and as a share of all income taxes paid in Oregon. Today, corporations operating in Oregon are paying about 71% less in state corporate income taxes as a share of the economy than they did in the late 1970s and are paying about 6% of income taxes compared to about 18% in the mid-1970s.

If corporate income taxpayers still paid the same share of income taxes they paid in 1973-75, state revenue would be about $1.8 billion higher this budget period. With K-12 education getting about 43% of the state general fund and lottery dollars, Oregon’s schools are losing out on at least $774 million in this budget cycle alone.

The long-term decline in corporate in-come taxes has occurred because corporations have won a number of tax breaks, and because corporations have grown aggressive about employing abusive tax shelters. A new tax break for companies with few Oregon sales but significant property and payroll in Oregon will cost Oregon over $70 million this budget period and will keep Oregon corporate income tax collections relatively flat for the rest of this decade.

Thorndike and other business leaders should not allow corporate Oregon to continue to avoid its commitment to quality public education. It is time for corporate Oregon to step up and do its part to improve education by picking up its fair share of Oregon’s income taxes and ending the outrageous corporate tax dodge.

— Chuck Sheketoff
Oregon Center for Public Policy
Silverton


Have an opinion?
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

Courtside

April 2015
Thursday, March 26, 2015
BY JACOB PALMER

Power lunching at the Court Street Dairy Lunch in Salem.


Read more...

Announcing the date of the 100 Best Green Workplaces in Oregon event

News
Friday, March 20, 2015
OBM-100-best-Green-logo-2015-250pxwBY OB STAFF

Join us to celebrate and network with Oregon’s best green workplaces!


Read more...

Bike Chic: 7 stylish options for cyclists

April 2015
Thursday, March 26, 2015

Cycling to work is all the rage. But not everyone wants to arrive at the office messy, sweaty — and unfashionable.


Read more...

5 questions for Flywheel CEO Rakesh Mathur

The Latest
Wednesday, April 29, 2015
FW splashBY JACOB PALMER | DIGITAL NEWS EDITOR

Portland is awash in rideshare options. We ask the head of Flywheel what sets his app apart.


Read more...

Epitaph for a Boondoggle

April 2015
Friday, March 27, 2015
BY JOE CORTRIGHT

The CRC is a cautionary tale about how we plan for, finance and invest in transportation infrastructure.


Read more...

Fighting Fire With Fire

May 2015
Friday, April 24, 2015
BY BEN DEJARNETTE | INVESTIGATEWEST

Timber companies and environmental groups take a stab at collaboration to boost logging and restoration in Oregon fires.


Read more...

Picture This

May 2015
Monday, April 27, 2015
BY JACOB PALMER

As a general rule, the more people with autism can be provided with visual cues, the better they will be able to understand and manage their environment. It’s a lesson Tom Keating learned well. The 61-year-old Eugene grant writer spent 31 years taking care of his autistic brother James, and in the late 1980s developed a spreadsheet that created a series of nonsense characters that grew or shrank depending on how much money James had in his account. 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS