Small businesses should be alarmed at the $240 million business and income tax by the METRO regional government (Measure 26-201) on the May ballot.
COVID-19 caused the worst economic shock since the Great Depression.
It will take months or years to recover family wage jobs lost during what Gov. Kate Brown appropriately declared a State of Emergency.
COVID-19 is causing unapparelled shutdowns and slowdowns as many local small businesses are forced to make painful layoff choices in order to preserve cash and try to survive. Many families consequently are in financial crisis as they go without regular paychecks. This measure is the wrong tax at the worst possible time.
For those small businesses still hanging on and trying to make payroll or hoping to hire back valued former employees, this additional demand on scarce cash flow could be a death knell.
We also must consider the accumulation of new expenses imposed by state and local governments on small businesses, such as the new state gross receipts tax that forces payments even when a business has had huge losses – as many have because of COVID-19.
The best solution against homelessness is a job.
Small businesses want to hire – but can’t if you drown them in new taxes.
Instead of reducing homelessness, Metro’s proposed tax likely increase homelessness by slowing down a post-COVID recovery.