Oregon People's Rebate
WHAT IS IT?
The Oregon People’s Rebate (2020) is a proposed initiative petition for the November 2020 election that will Rebate about $750 to every Oregonian. This rebate will go to anyone who is a resident of Oregon, regardless of age or income.
$750 per person is an estimate; about 4 million Oregonians will share an equal part of the estimated $3 billion in the revenue generated.
HOW DO YOU PAY FOR THIS?
Revenue is generated by increasing the minimum income tax of the largest corporations doing business in Oregon to 2.5%. Currently, the minimum income tax for these corporations is less than 0.12%
This only impacts the biggest corporations doing business in Oregon–those that make more than $25 million a year, or over $68,493 every day in our state. So, your favorite mom-and-pop pizza shop won't feel a thing.
Frequently Asked Questions
How do we calculate the "about $750” for every Oregonian?
The revenue for the Oregon People’s Rebate comes from modestly increasing of the minimum tax huge corporations (those with over $25 million in sales) pay to a new minimum of 2.5% (currently, these huge corporations pay a minimum tax of less than 0.12%).
The math behind the Oregon People’s Rebate is this:
The Oregon People’s Rebate is expected to raise at least $3 billion per year.
There are about 4 million people in Oregon (4,093,465).
Rebating (dividing) $3 billion to (by) 4 million Oregonians is about $750 for every Oregonian.
How will a small business benefit from the Oregon People’s Rebate?
Small businesses will benefit from the Oregon People's Rebate because every one of their customers will have about $750 more to send every year, and any business with less than $25 million in yearly sales (over $68,493 per day!) will not have to pay any more than they do today. Overall, the Oregon People’s Rebate will be a huge economic stimulus to our communities.
Will huge corporations pass on the new higher minimum 2.5% tax to consumers?
The fact that the largest corporations pay less (or zero) taxes in Oregon doesn't mean that our prices are lower, it just means that for every dollar they sell these large corporations make more money in Oregon than in other states!
Large corporations set their prices nationally (or at least regionally).
For example, the basic cable teaser rate is $19.99 just about everywhere in the U.S., regardless of state taxes. Same for overdraft fees, electronics, food, etc.
Previous worst-case scenario research on similar initiatives suggests a possible increase of about $600 more per family per year. The Oregon People's Rebate is estimated to be $2,250 for the average Oregon household. Any way you slice it, Oregonians will be ahead with the Oregon People's Rebate.
Will receiving the rebate negatively affect Oregonian’s income-based benefits?
No. The Oregon People’s Rebate (2020) is not considered income for Oregon tax purposes, it is essentially like expanding and increasing the popular Earned Income Tax Credit (EITC). Also, just in case, the proposed language states that any reduction in federal income-based benefits is offset through a “Hold Harmless” program.
Will corporations leave Oregon because of the Oregon People's Rebate?
Since customers cannot be outsourced, we doubt huge corporations will refuse to do business in Oregon. If some of them leave, smaller corporations and “Mom and Pop” shops will step in.
Does any of the revenue from the Oregon People’s Rebate go to the
All of the revenue from the Oregon People’s Rebate is rebated directly to Oregonians.
Oregonians can choose to decline the Oregon People’s Rebate and those rebates, as well as any unclaimed rebates, are used to provide additional funding for public early childhood and kindergarten through twelfth grade education, healthcare, and services for senior citizens.