You are wrong when you write "For most businesses this means a change from $10 to $150."
Most (about 2/3) businesses in Oregon are proprietorships which will pay nothing more under Measure 67.
Businesses that pass profits through to owners -- partnerships, limited liability companies (LLCs), limited liability partnerships (LLPs) and "s-corporations" (corporations with a limited number of shareholders that elect to pass through profits to shareholders instead of being subject to the federal corporate income tax) -- pay just $150, and only S-corps had been paying $10 - the other pass through entities had no entity tax when filing their partnership return.
And among c-corporations, those corporations that are subject to the federal corporate income tax, about 70 percent will pay either $150 (about 49 percent of C-corps) or will pay no additional profits tax under Measure 67 (about 21 percent of C-corps).
Put another way, only about 30 percent of C-corps will pay more than $150 minimum tax or some additional tax under the new tax rate for companies with profits greater than $250,000.
It is also wrong to say that "The measure would also raise tax rates by 1.3 percent on profits over $250,000." It adds 1.3 percentage points to the rate, it doesn't increase the rate by 1.3 percent.
posted 3 years, 4 months ago
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