Fierce Opposition to Oregon Measure 118 at the Polls Defeats Attempts to Establish a Basic Income Program

Oregonians have fiercely opposed Measure 118 which would have taxed corporate sales over $25 million by a minimum of 3% and funneled the revenue to residents who live in the state for at least 200 days every year.

Residents Would Have Received $1,600 a Year

Even though residents could have received kickbacks of an estimated $1,600 annually in tax rebates, Measure 118 was thwarted at the polls by 78.7% to 21.2%.

Supporters of the Defeat the Costly Tax on Sales campaign were jubilant about their victory with its chair, Angela Wilhelms, saying Measure 118 was flawed.

However, supporters of the measure believed it would help families put food on the table and keep a roof over their heads.

Estimates were that corporate sales tax would generate $1.3 billion for the two-year financial period ending next June, establishing the nation’s biggest basic universal income program.

The Measure was Opposed by the Governor and the Legislature

However, Measure 118 was opposed by Governor Tina Kotek, Republicans in the Legislature, many nonpartisan research groups, and businesses.

They argued that Measure 118 would see shop prices escalate and deter businesses from operating in Oregon.

Measure 118 was Oregon’s bid to follow Alaska’s example and become the second state in the country to offer a form of basic income to all its residents.

Alaska’s program has been operating since the 1970s and last year all its residents received a $1,312 payout. The state derives its basic income from oil and mining revenues.

The pro-Measure 118 campaign raised $637,000 in support but this was mostly from wealthy Californians, and the campaign listed less than 10 endorsements on its website.

In comparison, opponents raised close to $16 million and boasted a long list of endorsements.

The bulk of its support came from the business sector that said Measure 118 would force them to raise their prices, so harming consumers. They also believed that tax on gross sales would hurt businesses with small profit margins.