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on Tax Measures
This is RichardK back again to clairify my previous post and to add some more information.
The expected revenues compared to the total did not account for two years budgeting and an allowance for profitable corporations avoiding the minimum tax. Analysis by the Oregon Center for Public Policy indicates that 5,136 profitable corporations paid the minimum tax with 4,900 of these using carry forward losses and 216 using credits. Subtracting 5,136 from 20,803 would leave 15,647 C corporations paying the $150 minimum annually for a total of about $2 million without adjusting for C corporations being taken out of the $150 minimum by the $500,000 sales threshold. 54,419 S corporations at $150 would equal about $8 million annually and $7 million from partnerships would bring the total to about $17 million, or about $34 million for the 2009-11 budget.
The most likely reason for C corporations paying the minimum tax is that they can deduct compensation to corporate owner-officers who declare the income from their corporations on their personal returns like owners of S corporations. Oregon Department of Revenue statistics break down the C corporations paying the minimum tax by 20 sectors and they all show most of them payiing the minimum tax. Besides the largest 275 corporations who are less than 1% of 33,130 total C Corporations, but paid 65 percent of the total excise tax, 3% of the total paid 85%, and 4% paid 91% of the total excise tax. The top 4% of C corporations were in the taxable income range starting at $500,000 per year. This is a total of 1,443 returns. Therefore, it is not likely many "big" corporations paid the minimum $10 tax.
Measure 67 expected to raise $255 million for the 2009-11 budget, leaving at least about $221 million to come from a minimum excise tax on gross sales over $500,000, an increase on corporation taxable income over $250,000, doubling the annual report fee to $100, and other fees.
posted 3 years, 4 months ago
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