Beaver State News

NFIB Oregon has joined the campaign against Measure 118, following a survey where its members voted to oppose the initiative. Anthony Smith, NFIB's state director in Oregon, remarked on the unusual bipartisan opposition to the measure. "Measure 118 is a seriously flawed ballot initiative with both obvious and hidden harms, and people are seeing right through it," he stated.

The measure proposes a 3% tax increase on corporations with gross sales over $25 million in Oregon. The tax would be additional to existing taxes and would impact businesses across the supply chain. The revenue from this tax would be rebated equally to residents who have lived in Oregon for at least 200 days during the previous year, starting from 2026.

Critics argue that Measure 118 could harm essential services and lead to higher consumer prices. Governor Tina Kotek expressed concerns about potential budget impacts, stating, "It may look good on paper, but its flawed approach would punch a huge hole in the state budget and put essential services for low-wage and working families at risk."

Angela Wilhelms of the Oregon Business & Industry Association noted that consumers might bear the cost through increased prices. Senate President Rob Wager and other legislative leaders warned of implications for critical services due to California funding behind the initiative.

Tax Fairness Oregon labeled Measure 118 as problematic, while an Oregon Legislative Revenue Office report highlighted its regressive nature on lower-income households. Representative Jeff Helfrich emphasized bipartisan rejection of the tax, saying, "It is a tax so bad that even prominent Democrats stand with Republicans in rejecting it."

The Tax Foundation predicted businesses might relocate operations out-of-state if affected by this measure. Daniel Bonham criticized it as an unsuitable experiment for Oregonians.