SB 1528B negates state income tax relief for Oregon’s small businesses
FOR IMMEDIATE RELEASE
Contact: Anthony K. Smith, Oregon State Director, firstname.lastname@example.org
or Tony Malandra, Senior Media Manager, email@example.com
SALEM, Ore., April 13, 2018—The following business groups today expressed their disappointment in Gov. Kate Brown’s signing of Senate Bill 1528, which increases taxes on small business by more than $1 billion over six years. Statements follow.
- Associated Oregon Loggers
- Oregon-Columbia Chapter of Associated General Contractors
- Oregon Farm Bureau Federation
- Oregonians for Food & Shelter
- Oregon Power Sports Association
- Oregon Restaurant & Lodging Association
- Oregon Seed Council
- Oregon Small Woodlands Association
- Oregon State Association of Plumbing-Heating-Cooling Contractors
- Oregon Vehicle Dealers Association
- National Association of Insurance and Financial Advisors-Oregon
- Northwest Auto Trades Association
Anthony Smith, Oregon state director for the National Federation of Independent Business:
“Lower taxes mean more opportunities for entrepreneurs to make investments in their businesses, their communities, and their employees. NFIB remains committed to preserving every possible benefit from federal tax reform because the Tax Cuts and Jobs Act has led to a significant surge in small-business optimism across the nation, reaching some of the highest levels on record. Unfortunately, Oregon has chosen a different path. Today’s signing of SB 1528 marks a significant step backward for our state’s entrepreneurs.
Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association:
“As Oregonians running restaurants and lodging establishments continue to assess their tax liability under the new federal reforms, one thing is painfully clear – there will be no state income tax relief for Oregon’s small businesses. Oregon had an opportunity to replicate and amplify the successes of federal tax reform by connecting to the new 20 percent deduction on pass-through business income – which would have happened automatically, without passing a single bill this year. This is a very unwelcome and disappointing development.”
Cathi Webb, Executive Director for the Northwest Auto Trades Association:
“It’s sad to see Oregon moving in the wrong direction. We were once a leader in recognizing the importance of providing tax relief to our homegrown, main street businesses. Now, Congress and the White House have raised the bar with an inclusive policy that lowers taxes for nearly every S-corp, partnership, LLC, and sole proprietorship. We could have done the same. We didn’t.”
Jonathan Sandau, State Government Affairs for the Oregon Farm Bureau Federation:
“The state’s decision to decouple from the federal tax code jeopardizes our local farmers’ economic competitiveness by blocking the full benefits that could have been realized from federal tax reform. By keeping those dollars on the farm, Oregon’s small farming and ranching families had an opportunity to engage on a level playing field to provide healthy, responsibly grown food to our local markets.”
Jim Geisinger, Executive Vice President for Associated Oregon Loggers:
“The state asks small businesses to pay more and more of the state’s obligations while making it more and more difficult to make a buck to tax! They can’t have it both ways!”
Roger Beyer, Executive Director for the Oregon Seed Council:
“For Oregon’s family owned farms this is a real blow. Unlike many other businesses, farms cannot pick up and leave the state if it is unprofitable to continue doing business. The state has increased the cost of producing seed significantly in recent years and today, the Governor showed us where her loyalties lie. This was a missed opportunity for Oregon.”
According to the non-partisan Legislative Revenue Office, SB 1528B raises $244.4 million in 2017-19, $376.7 million in 2019-21, & $427.4 million in 2021-23, a total of more than $1 billion in additional revenue that was not part of the most recent state revenue forecast.
The U.S. Small Business Administration reports that Oregon has over 350,000 small businesses, accounting for 99.4 percent of all businesses in the state and employing more than half of the state’s private sector workforce. The median income for individuals self-employed at their own incorporated businesses was $44,147 in 2015. For individuals self-employed at their own unincorporated firms, this figure was $20,672, including all income sources.
For further background information, check out NFIB Leading Veto Campaign on Senate Bill 1528 story on the NFIB Oregon webpage and follow NFIB Oregon on Twitter for small-business news @NFIB_OR.