Corporate kicker reform up for vote

Why should I care: Measure 85 affects our education and futures. Measure 85 is planned to give extra revenues to corporations and makes extra money that would not be made otherwise. Due to the high taxes, it is a high chance that we will exceed the 2 percent tax projection and schools will receive more money under the cause of Measure 85. The extra money can be used to further action plans and help propose new opportunities to Oregon schools. On the other hand, Measure 85 can be seen as an unreliable revenue stream and endangers other corporations. Measure 85 can lead to further problems and can risk harmful cuts to government services during economic downfalls.

Measure 85 is a reform of the Oregon kicker law.The Oregon corporate kicker is a refund that occurs when the state of Oregon has collected more than predicted in taxes from both the Oregon taxpayers and corporations. The Oregon Constitution states that a refund can be given back to these individuals and corporations when there has been excess money collected. When the money collected exceeds the state’s budget by 2 percent it is given back to the corporations and taxpayers. Ballot Measure 85 reforms the kicker law by keeping the money rather than refunding it. The money will then go to Oregon schools.

When the state revenues exceed projections by 2 percent in 2-year budget periods, Measure 85 brings in revenues for corporations and schools. With the support of measure 85, corporations are given the chance to earn extra money and school are given the benefit to better their education. With high taxes, schools will benefit from Measure 85 and their extra money received will help Oregon students in the future.

If the the kicker law is passed then Oregon public schools k-12 will get millions of dollars to fund school for the next three years. The Oregon public schools have been facing ups and downs like the rest of the economic world. If a yes vote is given then the money from excess taxes will be given to our Oregon schools.

Because Measure 85 only issues taxes at exceeding 2 percent projections, legislation see this as a sporadic and unreliable revenue stream. Some do not see the purpose of this measure

The other main argument against Measure 85 is that it could disrupt “big-picture” discussions about state revenues. Bringing attention to the concept that would give approval to both the individual and corporate kicker rebates flow into the state’s “Rainy Day Fund”. This can lead to further problems and therefore risks lessening harmful cuts to government services during economic downfalls.
As of now, there is no campaign formed and no serious money is being spent to fight in opposition to Measure 85. Along with Governor John Kitzhaber, business and labor groups argue that the measure is not reliant and doesn’t guarantee that the Legislature will spend any more money on education. These corporations believe “the kicker” might jeopardize negotiations for a more sweeping tax reform plan during the 2013 legislative session.