Oregon Tax Hike Proposal Targets Business

The US economy remains the biggest single issue in the coming presidential election, and that is good news for Donald Trump and bad news for Hillary Clinton. Because Americans are showing strong support for Trump on economic issues.

When Ronald Reagan ran for president in 1980 conditions were almost as bad as today. And not only was the economy in terrible shape, but our foreign policy was much worse.

President Reagan both fixed our economy and vanquished the communist Soviet Union. He could be considered our greatest president ever over this twin triumph.

Yet Reagan was not even a successful business mogul like Trump is. Trump has created hundreds of thousands of jobs personally in his real estate empire over more than 40 years. That is a great role model for the nation.

Since I used to live in New York City, and walked past Trump’s landmark Trump Tower often, I know about Trump. He builds quality projects and that is why I admire him. But one of the most important projects that he ever did had nothing do with real estate.

Back in the 1980s, the skating rink in New York’s Central Park had broken down. The city spent $6 million and 5 years trying to fix it and had failed since the city government is corrupt and stupid. Trump took over the project and repaired the rink in 6 months for $500,000.

See how things work when a smart person in the private sector takes over?

Now Trump wants to bring his decades of business expertise to the whole nation. One of the first things he wants to do is to lower the US corporate tax rate, which is now the highest in the world at 35%. This high rate has led to an exodus of companies in the last few years. And Democrats are decrying the exodus, yet their own high-tax policy has caused it.

Meanwhile here are excerpts from an article from Foxnews.com about an effort in the state of Oregon to impose a huge tax hike on businesses. Each excerpt is followed by a Nikitas3.com comment:

Foxnews.com reports: A massive $2.8 billion annual corporate tax hike is likely headed to Oregon voters in November, a move that could create the most aggressive tax climate for big business of any state in the nation. Nikitas3.com comment: These tax hikes always have the reverse effect of what they propose. General Electric just moved its headquarters – and 800 fantastic, high-paying jobs, including executive jobs – out of Connecticut after state legislators hammered GE with a huge tax increase.

Foxnews.com reports: The ballot proposal comes as raising taxes on the wealthy and large corporations is at the forefront of a national debate — especially among Democratic progressives such as Bernie Sanders and much of Oregon’s electorate— about how to close the gaping economic disparities between rich and poor in a post-Great Recession era. Nikitas3.com comment: It is not a “great recession”. It is the Obama Depression. And if we continue to follow Obama’s socialist policies, the gap between rich and poor will widen even more. Because heavy taxation and regulation historically have produced economic stasis, poverty, decay and joblessness.

Foxnews.com reports: The proposal’s labor-union backers are just one step from getting the measure on the ballot after submitting 130,000 signatures to state elections officials last week. They say it would tap a tiny portion of Oregon businesses while bringing a huge boost to cash-strapped public education, health care and senior services. Nikitas3.com comment: Oh, sure, the labor unions… These are the same unions whose longshoremen on the West Coast of the United States, including those near Portland, Oregon, have been on strike and work slowdowns for several years now even though high-school-educated union members earn on average $100,000 a year. This shows how corrupt these unions are. Their greed is bottomless. This tax hike it just another money grab sponsored by the unions.

Foxnews.com reports: But a long-awaited state analysis, released Monday, found the proposed tax hike would come with major pitfalls for wages, jobs and consumers’ pocketbooks. “Oregon would have the worst corporate tax climate in the country,” said Nicole Kaeding, an economist with the Tax Foundation, a Washington, D.C., nonprofit that has closely watched the proposal. “If you think about it on a national level, these would be similar to changes in federal revenue by 3 to 4 percent. It’s gigantic.” Nikitas3.com comment: Leftists don’t care if the plan hurts the Oregon economy. Their main goal, blessed by the unions, is to suck private wealth out of private businesses so that Democrats can spend the money themselves through the government.

Foxnews.com reports: Oregon is one of five states with no sales tax. But like many others, it taxes corporations based on income. The ballot proposal would maintain the income tax, but for the biggest businesses, it would add an additional layer of what’s called a gross receipts tax. That’s a sales tax on steroids, Kaeding said. Nikitas3.com comment: There is a famous story from 1990 about a special tax on luxury yachts that was supposed to get more money for the federal government. Instead rich people stopped buying yachts and the yacht-building industry virtually collapsed, killing thousands of jobs. In short, that tax increase had the opposite effect of what it proposed.

Foxnews.com reports: The measure targets Oregon’s biggest corporations — roughly 1,000 by the state’s estimates, or about 4 percent of businesses. Those with $25 million in Oregon sales would pay a minimum $30,000 tax, plus 2.5 percent on anything above that threshold. That would bring in an extra $6 billion in estimated revenue — boosting the state’s corporate income-tax collections more than five-fold — during the 2017-19 budget cycle, which has a looming shortfall. Nikitas3.com comment: Notice that that extra revenue is only “estimated”. This plan will simply shift wealth around. And when that wealth is in the hands of the government, it will be frittered away. It is better left in private hands where it will work to keep the Oregon economy alive. If it is taxed away and the private economy produces less and less wealth, then the state’s spending problems will only get worse. Oregon needs to control its spending, not increase its taxes. For instance, Portland, Oregon spent $150 million on an 3.3-mile trolley line, a line that can easily be served by buses at no cost. A proposed light-rail train from Portland to the suburbs may cost $450 million.

Foxnews.com reports: The state analysis found that if the proposal passes, consumer prices will rise, population will decline, and about 38,000 private-sector jobs will be lost over five years — although 18,000 public sector jobs will be added. The state believes retailers and utilities would be among the hardest hit, which would have a harsh effect on lower income households. Nikitas3.com comment: Wow… 38,000 jobs. These huge tax hikes always backfire. High taxes are ruining the California economy. The company called Intel, which is the “grandfather” of the Silicon Valley computer industry, has not created a single job in California since the year 2000 as a result of the state’s higher and higher tax rate. Businesses go where they feel welcome.

Foxnews.com reports: Katherine Driessen, spokeswoman for the unions, took issue with some of the state’s methodologies, but highlighted its key finding that Initiative Petition 28 would help stabilize the budget. For far too long, Oregonians have shouldered the burden of funding the state’s critical services, she said. Nikitas3.com comment: It is better to have corporations and their jobs with moderate taxes, than to demand more of their money and risk having them flee. The whole American economy is moving to the low-tax states. There is a clear reason for that.

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