Voters in Oregon have overwhelmingly rejected a ballot measure, Measure 118, that would have raised corporate taxes to provide all residents with an estimated $1,600 per year. The measure was defeated 79% to 21% in partial returns as of Wednesday morning.
Measure 118 would have implemented a 3% tax on most corporations’ total sales in Oregon over $25 million, with the revenue distributed equally among residents through direct cash payments or refundable tax credits starting in 2025. This would have established the nation’s largest universal basic income program.
Supporters argued that the measure would help alleviate poverty and stimulate the state economy, while requiring corporations to pay their fair share of taxes. However, opponents including Gov. Tina Kotek and bipartisan legislative leaders, as well as businesses and nonpartisan research groups, warned that the tax would lead to higher prices, deter business operations, and strain the state budget.
Oregon would have been just the second state to offer some form of universal basic income to all residents, following Alaska’s annual payout from oil and mining revenues. Critics of Measure 118 argued that it could have negative consequences, such as causing some families to lose federal benefits.
The campaign supporting the measure struggled to gain widespread support, with minimal endorsements and funding mainly from wealthy Californians backing universal basic income initiatives. In contrast, the opposition campaign received significant support from businesses like Kroger, Albertsons-Safeway, and Costco, raising concerns about potential price increases and impacts on businesses with narrow profit margins.
Despite arguments from both sides, voters ultimately sided against Measure 118 in a decisive outcome.
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Photo credit www.oregonlive.com
