Measure 118 promises to give all Oregonians cash while hiking taxes on corporations. (Getty Images)
A proposed corporate tax hike to send every Oregonian a check could end up costing the state more than $1 billion annually, legislative revenue analysts told lawmakers this week.
Voters will decide in November whether to approve Measure 118, which would increase by 3% the corporate minimum tax on sales above $25 million and distribute proceeds to all Oregonians. In 2026, the average rebate could range from about $1,000 to $1,300, according to an analysis released this week.
State fiscal analysts have spent months trying to figure out how the proposed new tax and rebate would affect Oregon’s budget. It’s complicated – it would raise taxes on many corporations, resulting in more tax revenue, but because the rebate would be claimed by many Oregonians as personal income tax credits that reduce their taxes, personal income tax revenue could decrease. Other Oregonians would receive their rebate in the form of direct payments, which would show up on state balance sheets as money spent.