Measure 118 Payment Benefits, Eligibility & Complete Details: As Oregon approaches the polls in November, Measure 118 is gaining significant traction. This innovative initiative proposes a one-time rebate of $1,600 for every resident, targeting individuals who have lived in Oregon for over 200 days, including minors and dependents. The measure, which seeks to impose a tax on large corporations to fund these rebates, has sparked a mix of criticism and support. While many local businesses, organizations, and politicians from both parties oppose it, advocates for universal basic income from California’s tech sector are rallying behind the proposal.
With the election drawing near, Measure 118 Payment has received new endorsements, setting the stage for a decisive vote. Experts have shared insights with Newsweek about the potential impact on families and the state’s economy. If passed, this law would ensure a direct payment of $1,600 to all Oregon residents, with the state’s fiscal analysis estimating a median rebate of $1,605 over the first three years, promising substantial benefits for families and the overall economy.
Measure 118 Payment
Measure 118 has emerged as the most contentious ballot initiative in Oregon, igniting widespread discussion throughout the state regarding its implications. The central question revolves around whether it constitutes a corporate tax or if it will ultimately impose a financial burden on consumers. This measure seeks to implement a three-percent tax on large corporations in Oregon that generate over $25 million in annual sales, with the intention of redistributing the collected funds to residents through annual rebates projected to be approximately $1,600.
The measure is anticipated to generate approximately $7 billion annually, which would allow for the distribution of around $1,600 to every resident of Oregon, irrespective of age. Antonio Gisbert, a supporter of Measure 118, acknowledged in a previous interview with KGW that while the $1,600 may not resolve all financial issues, it would certainly provide significant assistance. He argued that large corporations are not contributing their fair share in taxes and that the funds could be better utilized to enhance community investments, thereby fostering economic growth, particularly in local economies.
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Conversely, critics contend that Measure 118 is fundamentally flawed and could have detrimental effects on the state’s economy. Angela Wilhelms, chair of the lobbying organization Oregon Business & Industry, expressed skepticism, stating, “Oregonians are smart; they know that free money is never free.”
Measure 118 Payment Eligibility
- To qualify, a person must live in Oregon for over 200 days each year.
- Residents born or who pass away in a year can still receive the rebate, even if a baby is born on New Year’s Eve.
- State revenue officials estimate the policy could generate over $6.5 billion annually, affecting less than 2% of businesses with tax increases.
- The plan could provide around $1,600 each year to every Oregon resident starting in 2026, through tax credits or direct payments.
Benefits of Measure 118
- You can receive the Measure 118 rebate as cash or a refundable tax credit for yourself and your household members.
- If your Oregon tax owed is less than your rebate, you will receive cash, similar to an annual kicker.
- Households earning under $40,000 will have no tax liability in Oregon after Measure 118 is approved, according to the Legislative Revenue Office.
- The rebate aims to provide direct payments to all residents, potentially addressing affordable housing challenges in the state.
- A report from the Oregon Office of Economic Analysis shows that nearly half of renters spend over 30% of their income on housing.
- More than half of renters reported not having enough money for essentials like food and childcare after paying rent.
- If approved, all residents living in Oregon for over 200 days, including minors, will receive the payment.
- Measure 118 aims to create fairer tax conditions for small local businesses compared to large out-of-state corporations, which will face a new 3% tax on revenue exceeding $25 million in Oregon.
- The measure is projected to reduce Oregon’s overall poverty rate by 36% and provide more options for families.
- Childhood poverty in Oregon could drop by 49%, while poverty among seniors may decrease by 9%.
- Oregon has the necessary systems in place to distribute cash back to residents, allowing for a smooth implementation of the rebate program.
- Most residents can opt for the rebate as a tax credit or cash, and the program is designed to be simple and quick without means-testing.
- To distribute the $1,600 payments, the state must raise its minimum corporate tax rate by 3% on revenue exceeding $25 million.
- Drew Powers, from Powers Financial Group believes the rebate could lead to a universal basic income if adopted.
- The initiative aims to provide financial relief and support for residents facing economic challenges.
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There is opposition who oppose 118
- Various groups oppose Measure 118 for different reasons.
- Businesses claim that the sales tax will lead large companies to raise prices for customers.
- A state analysis predicts a potential 1.3% price increase by 2030 and a slight slowdown in job and wage growth.
- Supporters doubt that the tax will raise prices significantly, arguing that direct payments to citizens will offset any cost increases.
- Politicians and labor organizations worry about the measure’s effect on the state budget, suggesting it could result in over $1 billion in lost funding for essential services.
Some points to remember
- Funds will be consistently allocated to the Department of Revenue for the distribution of rebates and the hold harmless program as outlined in the 2024 Act.
- The changes to ORS 317.090 from section 1 of the 2024 Act will take effect for tax years starting on or after January 1, 2025.
- If any part of the 2024 Act is found to be invalid, the other provisions will still be effective and enforceable.