Democratic leaders in Oregon’s House and Senate have expressed strong opposition to a November ballot measure that proposes raising corporate taxes to provide cash payments to every Oregon resident.

Key Democratic figures in the legislature, including House Speaker Julie Fahey, House Majority Leader Ben Bowman, Senate President Rob Wagner, and Senate Majority Leader Kathleen Taylor, have joined Republicans and Governor Tina Kotek in criticizing Measure 118, also known as the Oregon Rebate. This proposed measure, one of five statewide questions on the November ballot, aims to increase the corporate minimum tax by 3% on sales exceeding $25 million, with the additional revenue being distributed to all Oregonians.

A recent legislative fiscal analysis suggests that the increased tax could lead to approximately $1,600 in annual payments for eligible Oregonians, ranging from those collecting small amounts from bottle returns to the state’s wealthiest individuals, like Nike co-founder Phil Knight. The measure is projected to generate an additional $7 billion in tax revenue annually. However, analysts warn that the state could see a reduction of about $400 million in funds available for essential government services in the 2025-27 budget cycle. They also predict that costs for goods could rise more significantly due to the new tax and rebate system.

In response to these findings, Democratic leaders issued a joint statement urging Oregonians to reconsider their support for Measure 118. “As a matter of public policy, we believe this is a bad deal for Oregonians,” the statement reads. “We ask Oregonians to take a closer look at Measure 118, and we ask you to join us in voting no.”

The Democratic leaders argue that the initiative, funded by a California venture capitalist, could have severe consequences for critical government services such as health care, infrastructure, and public safety.

Governor Kotek also voiced her opposition, stating in a July interview with Portland’s Willamette Week that while the measure might appear beneficial on the surface, its flawed approach could create significant budget shortfalls and jeopardize services for low-wage and working families.

Republican lawmakers share the concerns, with Senate Minority Leader Daniel Bonham describing the measure as “another out-of-state and dangerous experiment that doesn’t align with the needs of Oregonians.” He argued that it threatens economic stability by increasing costs for businesses and consumers, potentially leading to job losses and higher prices. Bonham warned that the measure could force severe cuts to vital public services, including education and public safety.

The state’s leading business lobby, Oregon Business and Industry, is actively opposing the measure and has invested over $500,000 into a political action committee against it. In contrast, supporters, led by Josh Jones, a California venture capitalist who advocates for universal basic income, have raised nearly $900,000 to promote the measure.

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