Salem, OR – Senate Republicans want to put Oregon small businesses on the same footing as big corporate firms that currently hold up to a 40% tax advantage over Oregon entrepreneurs and family businesses.
Senate Bill 472 would lower the tax rates applied to small business like sole proprietorships, partnerships, and family-owned S-corporations to a rate equal with big business.
“Oregon tax policy empowers mega corporations in capital accumulation while leaving small businesses to fend for themselves,” said Senator Larry George (R-Sherwood). “Senate Republicans want to champion the cause of small businesses in the legislature and give them a fighting chance against corporate America. That starts with leveling the playing field and restoring some tax fairness.”
Last session the tax increases in Measure 66 increased the disparity between small business and corporate tax rates. Profits realized by a small business owner whose business is organized as a sole proprietorship, partnership or family-owned S-corporation are taxed as regular income, which includes Oregon’s highest-in-the-nation rate of 9% to 11% for certain filers. Big corporations are taxed at a rate of 6.6% for profits less than $250,000 and 7.9% for profits over $250,000.
“Successful small businesses mean successful Oregon families,” said George. “We want to see small businesses and therefore families that have the opportunity to prosper, grow and lead successful lives in Oregon. We have to start by changing the way government treats small businesses by giving them a chance to reinvest their capital into their business.”
“It is unconscionable that Oregon state government would tax a small business up to 40% more than a mega corporation from Wall Street making the exact same widget,” said George.
Oregon’s economy is in desperate need of revitalization. At last count, 750,000 Oregonians were collecting food stamps and more than 200,000 where unemployed, with thousands more underemployed. Oregon’s average income has perpetually lagged behind the national average.