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

Free Falling

Contributed Blogs
Thursday, December 18, 2014
121714-oilprice-thumbBY JASON NORRIS | OB CONTRIBUTOR

The implosion of the energy complex: The best thing for low oil prices is low oil prices.


Read more...

Behind the curtain: What students should know about accreditation and rankings

Contributed Blogs
Thursday, December 04, 2014
120414-edurating-thumbBY DEBRA RINGOLD | OP-ED CONTRIBUTOR

How important are institutional and/or program evaluations provided by third parties in selecting a college or university program?


Read more...

Top stories in 2014

The Latest
Thursday, December 18, 2014
10-listthumb

2014 was a year of wild contradictions, fast-paced growth and unexpected revelations.


Read more...

Powerbook Perspective

January-Powerbook 2015
Friday, December 12, 2014
BY LINDA BAKER

A conversation with Oregon state economist Josh Lehner.


Read more...

OB Poll: Wineries and groceries

News
Friday, October 24, 2014

24-winethumbA majority of respondents agreed: Local vineyards should remain Oregon-owned and quality is the most important factor when determining where to eat or buy groceries.


Read more...

Justice for All

January-Powerbook 2015
Thursday, December 11, 2014
BY JESSICA RIDGWAY

Lawger upends the typical hourly based fee model by letting clients determine the cost.


Read more...

Leading with the right brain

News
Tuesday, December 09, 2014
120914-manderson-thumbBY LINDA BAKER

On the eve of the Portland Ad Federation's Rosey Awards, Matt Anderson, CEO of Struck, talks about the transition from creative director to CEO, the Portland talent pool and whether data is the new black in the creative services sector.


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