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Oregon Gov. Kate Brown has announced her support of the controversial corporate tax Measure 97, the proposed corporate tax increase that will raise $3 billion a year in new tax revenue.
"I support Measure 97 because there is a basic unfairness in our tax system that makes working families pay an increasing share for state and local services, including public schools, senior services, and health care," Brown says in a statement released by her reelection campaign.
The measure is expected to dominate Oregon's fall election cycle, with national corporations and labor unions already throwing heavily-funded attacks at each other.
Measure 97, backed by union-funded group Our Oregon, has already attracted some high-profile opponents, including Intel and Emily Powell, owner of Powell's books.
The measure would significantly increase taxes on big corporations in Oregon. Any corporation with more than $25 million in sales would have to pay a minimum of $30,000 a year, plus a 2.5 percent tax on all sales above $25 million. The current tax rate is 0.1 percent on sales and is capped at $100,000.
The war between Our Oregon and local companies is already heated: Last month, WW reported how insurer The Standard and tech giant Intel both threatened to pull funding for Portland nonprofits if they backed the tax.
Brown's endorsement ends months of speculation about her position on the measure. She has repeatedly refused to take a position. In June, she talked about how she would spend the $3 million but didn't endorse the tax. That same month, former Gov. John Kitzhaber blasted Brown for waffling.
Brown said she was just being careful.
"I think that it's more important that I get the decision right than have it be done quickly," she told OPB in June.
The measure's backers are rejoicing.
"With her endorsement, Gov. Brown is joining a movement that includes more than 600 endorsers working to hold large, out-of-state corporations accountable to pay their fair share," writes Otto Schell of the Oregon PTA. "Measure 97 will markedly improve the lives of Oregon families and students."
Brown's endorsement drew criticisms as well. Mike Phillips, spokesman for the "no" campaign on Measure 97, says the tax is still going to lose.
"Measure 97 would give politicians and bureaucrats a $6 billion dollar raise and a blank check to spend it any way they want," Phillips says in a statement. "While some politicians may like that idea, we doubt the majority of Oregon taxpayers and voters will."
Bud Pierce, Brown's Republican opponent in the governor's race, said he was not surprised by the endorsement.
"It took her more than 300 days to take a stance," Pierce said in a campaign statement. "Months ago she released how she would spend the money raised by this increase, which showed that she obviously supported the measure, but was afraid to take an unpopular position."
House Republican Leader Mike McLane (R-Powell Butte) is also dismissive.
"Governor Brown's support of Measure 97 was the worst kept secret in Salem," he said in a statement. "Today, she apparently decided it was time to come clean with Oregon voters. Now let's see how many other Democratic candidates are going to be honest with voters about their support for the largest tax increase in Oregon history."
Here's Brown's full statement.
Willamette Week
