Governor's Budget: Corporate Taxes

As part of his budget package, the Governor stuck to his guns on corporate taxes. From the Statesman-Journal:

Kulongoski said business leaders will agree to forego $275 million in projected corporate kicker tax rebates, if the money goes into reserves. He want a step further Monday, saying he'll ask voters to make that plan permanent by amending the Constitution.

"I'll propose a referendum to do this on a permanent basis instead of just one time," he said.

The governor said business leaders also support raising the corporate minimum tax -- which now lets many corporations pay as little as $10 per year -- if the money goes to expand Head Start preschool, increase college grants and improve worker training.

"The business community wants to do these," Kulongoski said.

Discuss corporate taxation on this post. Discuss the rest of the budget proposal here.

  • John Mark Karr (unverified)

    We should kick the corporate kicker and instead invest that money is an out-of-state public trust, perhaps Colorado, Alabama, or even in Thailand.

    Just a thought.

  • Sid Leader (unverified)

    Two sophomoric Thai jokes (one in another thread) in two minutes for the infamous J.M.K.

    Might be time to hire a new writer.


  • MsBlue (unverified)

    The governor is making a mistake. The corporate minimum and corporate kicker are all we have too talk about that the public understands about corporate taxation.
    Do not increase the corporate minimum unless you reverse instate sales only taxation of corporate earnings (aka single sales factor). That should get us back to something above 6% of our budget coming from corporations. When the reversal is accomplished, require a $250 to $50,000 tax on all entities – C corps, S Corps, LLC’s, partnerships, LLP’s and trusts (others?) (Also non-profits and foundations?) (Enron had 800 entities –how many entities do Intel, Jeld-wen, Stimson Lumber, Tektronix, Umpqua Holdings, Van’s Aircraft and/or Monoco Coach have?). This will provide money to actually process and audit entity’s often complex tax forms and provide court services for entities at their own expense rather than at the expense of other public structures. It will still remain the cheapest insurance most businesses and other entities have.

    Provide no increase for early education until this is accomplished.

  • (Show?)

    (Also non-profits and foundations?)

    They don't pay any taxes. That's sort of the point of a tax-exempt organization.

  • (Show?)

    Raising the corporate minimum state income tax, but capping the limit at $50,000, appears very regressive in the sense that it will place a relatively larger burden on small business. PGE's annual revenue in Oregon is over $1.4 billion. Does it matter a great deal if PGE pays $50,000 in state corporate income taxes instead of $10? No, because that payment will still amount to only .00357 percent of its annual revenue. The plan will effectively increase taxes far more for small businesses.

  • David Bean (unverified)

    Successful taxation for nation states that persist through time engage these three principles:

    1) Tax the ones that can pay,

    2) See that taxes fall without exception on those who can.

    3) and tax those things that are injurious to the citizens.

    To file to be a corporation is to immunize one's assets from liability from suit. How much is that worth? More than a ten spot.

    To put caps on tax payments is to give advantage to the very lucrative. This perversity seeps over into purchasing the political system and ultimatly governance.

    The point of a governor on an engine is to regulate its speed so that is does not self destruct. In short to say 'no'. Same goes with regard to a state governor. If they cannot say 'no' to disturctive behaviors, distruction ensues.

    <h2>I believe we are currently observing this.</h2>
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