Rep Thatcher Says Supporting Small Businesses Means Opposing New Taxes

Thatcher spoke against the measures saying, “if those businesses are forced to pay more taxes, then there is less disposable income for businesses to use to hire workers and they may have to lay off workers.”

State Rep Kim Thatcher

(SALEM, Ore.) - Thousands of small business owners will be hit by $733 million in new tax hikes approved by the Oregon House of Representatives today, State Representative Kim Thatcher (R-Keizer, St. Paul, Newberg) said.

During debate on the House Floor today Thatcher said, “We can’t tax our way out of a recession.”

Thatcher voted against House Bill 3405 which raises the corporate tax to 8% up from 6.6% on companies with over $250,000 in corporate income.

The measure increases the corporate minimum tax up to $10,000 depending on annual sales. She also opposed House Bill 2649, a measure to raise personal income taxes on individual taxpayers from 9% to 11% if they make over $125,000 and joint filers making more than $250,000.

She says these tax increases will not just impact profits, but also total sales. Businesses could be on the hook for thousands and thousands of dollars in taxes, even when they lose money.”

“All these taxes trickle down to the individual. Think about the multiplier effect,” added Thatcher.

“Services used by every Oregonian will now have a hidden sales tax. The banks, grocery stores, insurance companies, gas stations – services used by everyday Oregonians – will now have to include the cost of covering these taxes."

Some advocates for the measures call these “small” or “minor” tax increases. However, the taxpayers footing the bill will see up to a 22% increase in the tax rates.

As a small business owner herself, Thatcher says she is concerned about the impact of these measures on her counterparts in the private sector. She believes they might do less business or move out of state to avoid paying the higher taxes imposed by this legislation.

Thatcher spoke against the measures saying, “if those businesses are forced to pay more taxes, then there is less disposable income for businesses to use to hire workers and they may have to lay off workers.”

Oregon has the second highest unemployment rate in the country and with this new income tax bracket; the state will have the highest personal income taxes in the nation. These are permanent increases in the tax code and Thatcher believes they send the wrong message to businesses considering moving to Oregon.

Finally, Thatcher wondered what would happen if these bills are referred to the ballot and are rejected by voters. “What is Plan B? How will we keep services going without all this new revenue?” She has advocated using some of the billions of dollars the state has in reserves to cover critical needs in the state budget.