February 22, 2018
For Immediate Release
Contact: TJ Reilly, OSBA President,

 OREGON SMALL BUSINESS ASSOCIATION TO LAUNCH TAX PARITY INITIATIVE PETITION

“Local, Family & Small Business Fairness Act” levels the playing field between Oregon’s smallest businesses and large corporations while repelling future attacks on small business by Oregon’s legislature

Portland, Oregon –The Oregon Small Business Association announced today it will file the “Local, Family and Small Business Fairness Act” early next week for the 2020 November General Election. The ballot measure would seek to make all tax rates, calculations and loopholes afforded to the largest publicly-traded companies automatically available for small and family businesses without limitation of income level or capital expenditure. The ballot measure is in direct response to Democratic State Senator Mark Hass’ attempts to saddle Oregon’s smallest local and family businesses with a $200 million-dollar tax increase, while providing the wealthiest Oregonians new tax credits to avoid paying higher federal tax liability.

“We are through with the constant attacks by Senate Democrats on Oregon’s small business community,” said TJ Reilly, president of the Oregon Small Business Association (OSBA). “We will no longer stand by and allow our tax code to be manipulated unfairly to advantage Wall Street firms and Democratic campaign donors while disadvantaging small, local, and family-owned businesses. An un-level tax code advantaging big business means extinction for small businesses over time.”

To restore a level playing field, OSBA has drafted the “Local, Family and Small Business Fairness Act”. If successfully passed by voters in 2020, the measure will require a revision of Oregon’s tax codes to ensure any tax advantages given to large, publicly-traded, and out-of-state corporations operating in Oregon would be automatically allowed for thousands of local, family, and small businesses.  In Oregon, over 60,000 small businesses employ between one to four people.  Many have a higher tax liability as a percentage of income than their large, corporate counterparts.

OSBA believes voters should step in to correct this deficiency.  They point to the extreme, lopsided and unfair tax structure being considered in the 2018 legislative session.  Versions of Senate Bill 1528 proposed by Senator Hass would do even more damage:

• SB 1528-A would have changed the tax code so small, family-owned businesses would pay a higher tax rate than large and out-of-state corporations doing business in Oregon;
• SB 1528-B disconnects Oregon from the federal tax code, wiping away any tax savings for small businesses while leaving large corporate tax breaks in place. In the 2017 Federal Tax Reform legislation passed by Congress, corporate America received a 66% tax break; small businesses received a 20% reduction. SB 1528 disallows small business from realizing needed tax relief while protecting the full 66% tax break for big companies.
• SB 1528-B also creates a tax avoidance scheme for wealthy Oregonians.  Senator Hass’ bill will take $14 million of the $200 million he intends to swipe from small businesses and redistribute those dollars to high income earners who can afford to buy overly-generous tax credits to reduce their taxable income.

Reilly said OSBA has been conducting surveys this week of small businesses across Oregon to gauge support for the ballot measure.  Preliminary results suggest overwhelming support for parity in the tax code.

Over 85% of survey participants indicated they would welcome the “Local, Family and Small Business Fairness Act”.  Nearly as many say they oppose SB 1528 tax hikes, and they do not support the bill’s tax credit giveaway for high income earners.

“Just recently, I had a friend who moved his business to the South because other states were welcoming him while Oregon was offering nothing but higher taxes, fees and regulations,” said Charles Ireland, owner of a Southern Oregon trucking business. “Senator Mark Hass’ bill, SB 1528, is a perfect example of targeting small business owners.”

For Ivan Mavarrette, manager of a print shop in Portland, the impact of Senate Bill 1528 is very clear. “Ninety-nine percent of our customers are small businesses. A tax increase means less customers, fewer businesses and employees.  This tax is a job killer.”

More information about Oregon Small Business Association’s position on Senate Bill 1528 can be found at www.oregontaxalert.com.  The ballot measure language will be made available on its website the same day OSBA files the initiative with the Oregon Elections Division of the Secretary of State’s office.

Oregon Small Business Association
PO Box 23815
Portland, OR, 97281