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Bend Chamber Weekly
December 11, 2009
By Courtney Linville, Communications Coordinator
This Week's Highlights
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Letter from Bend Chamber Board of Directors on Measures 66 & 67
Dear members,
The Bend Chamber Board of Directors has spent a great deal of time researching and discussing the impact of Measures 66 & 67 and has voted to take a position in opposition of these increases.
Seventy-five percent of our membership is comprised of home-based and small businesses with 10 or fewer employees. Every month, we see a membership report which shows new businesses working to get off the ground while others are closing their doors. Many businesses are struggling, leveraging their assets and drawing on their savings to stay open. They cannot accept the burden of additional taxes, especially those designed to tax gross receipts even if no profit is made. In these economic times, a small amount of money can make the difference between staying current with bills and making payroll or sliding into delinquency and eventual closure. Measures 66 & 67 will be the final straw for some, however it is avoidable.
Measures 66 & 67 will not protect citizens from the redistribution of burden. Taxing the so-called "rich" means legislators are looking for someone else to do their job and make the tough decisions on how the state develops its revenue. It will be left up to business owners and managers to decide how to pass the costs along. They cannot simply dig deeper into their wallets to satisfy the increase; it must come from somewhere else. These tax measures will be redistributed to all of us in the form of reduced salaries, reduced benefits, increased cost of goods and services, reduction of workforce, and higher unemployment rates.
Furthermore, the demonization of a higher income bracket is a tried and true political tactic to play on our citizen's sense of envy, "They have it and we want it." It is state sanctioned discrimination, and like all forms of discrimination, it is deplorable. This is not a tax on the fortunate. Businesses do not "luck" into success; they earn it inch by inch, day in and day out, through blood, sweat, and tears. What some legislators forget is entrepreneurs have taken risks with themselves and their families to start a business. They have made sacrifices and hard choices, put forth considerable effort and long hours, and hopefully have been successful, because not all businesses make it. Entrepreneurs will rightfully view this as a "success tax," an unfair penalization for all of their efforts.
An economy is like an ecosystem where the success or failure of one part affects another. Dollars spent at one store are distributed to owners and employees and then spent at another store and so on. As taxes increase, fewer dollars are paid back into the community, and the effect is compounded as the state receives its cut with every transaction.
Just as we are all forced to live within our means, make hard choices and sacrifices, and tighten our belts in one of the worst economies since the Great Depression, so should our state government. At the very least, the state should be expected to restrain its growth and mitigate the substantial burden already placed on the backs of businesses.
The Bend Chamber was chartered over 80 years ago to support and protect businesses in our community. Our mission is to "Enhance the Economic Vitality of Bend" and for these reasons, we oppose Measures 66 & 67.
Having a united business voice is crucial to defeating these job killing and permanent tax hikes. One important way you can help in our efforts is to become a member of the Bend Business PAC. A contribution of $50, $100 or $250 will help in our efforts to educate the public about these measures and help keep business strong in Bend. |
Measures 66 & 67 Survey Results
The following are the results from a recent survey the Bend Chamber conducted on Measures 66 and 67. There was an overwhelming response from the membership on this survey. We are proud to say 23 percent of Chamber members responded.
1. Do you feel confident you have a reasonable amount of information to make an educated decision on Measure 66 and Measure 67?
a. Yes - 55.2%
b. No - 36.2%
c. Unsure - 8.6%
2. Do you feel you need more information on the impact of Measure 66 and Measure 67?
a. Yes - 51.4%
b. No - 44.1%
c. Unsure - 4.5%
3. Do you support Measure 66, the measure which raises the tax on household income above $250,000 and $125,000 for individual filers and reduces income taxes on unemployment benefits in 2009?
a. Yes - 31.2 %
b. No - 53.5%
c. Unsure - 15.3%
4. Do you support Measure 67, the measure which raises the state's corporate minimum tax, business minimum tax, and corporate taxes on sales even if there is no profit?
a. Yes - 18.1%
b. No - 66.0%
c. Unsure - 15.9% |
Insights on Measure 66 & Measure 67
As you can see from the survey numbers above, 51.4 percent of Chamber members would like to receive more information about the impacts of Measures 66 and 67. Over the coming weeks, leading up to the final vote on January 26, 2010, the Chamber will provide additional information on these measures.
Measure 66 revolves around personal income and reduced income taxes on unemployment benefits in 2009. Historically speaking, unemployment compensation has been taxed by both the state and federal government. However, under the American Recovery and Reinvestment Act of 2009, federal guidelines excludes from taxation up to $2,400 of unemployment compensation. The Oregon Legislature has chosen to adopt the same policy.
Measure 66 would also phase-out the federal tax subtraction for high-income filers (single filer $125,000 and above and joint filer $250,000 and above). As income increases, there would be a subtraction in 20 percent increments or "steps" until the subtraction is zero. According to the report from the Legislative Revenue office, a joint filer with $250,000 of adjusted gross income (AGI) or a single filer with $125,000 of AGI would only be able to subtract $4,480 rather than the typical $5,850. A single filer with greater than $145,000 (AGI) and a joint filer with more than $290,000 AGI, would not be eligible for any federal tax subtractions.
By now, you've heard messages on the radio or television about Measure 67. This measure raises the state's corporate minimum tax, business minimum tax, and corporate taxes on sales even if there is no profit.
One item contained within Measure 67 which hasn't been highly publicized is the increase in the Secretary of State business registry filing fees. Prior to the measure, all businesses paid an annual flat fee of $50. Now, a non refundable fee of $100 per document for the following documents will be enforced if Measure 67 is passed: Articles of Incorporation, Articles of Organization, applications for registration, and trust documents. The Secretary of State shall also collect a $100 nonrefundable fee for annual reports delivered for filing by an organization or entity subject to the items listed previously.
The Secretary of State will collect an additional $275 non refundable fee for the following: applications for authority to transact business (ORS 58.134, 60.707 or 67.710), applications for registration (ORS 70.355), annual reports for afore mentioned which are allowed or required to be filed with the Secretary of State. All other documents which have not been specified will have a nonrefundable fee of $50 to file with the Secretary of State as part of the business registry functions.
The allocation of the business registry funds has also been changed. Originally, the Secretary of State would look at the number of filings each month and then transfer $30 of each business registry filing to the General Fund. As of July 1 of each year, any funds which hadn't been spent or weren't obligated for the functions of the Secretary of State would be transferred to the General Fund to become available as general governmental expenses.
Under Measure 67, $20 of each filing will go into the Secretary of State's Operating Account, and all other fees collected during the month will be transferred into the general fund. The code also states, "Amounts deposited to the General Fund under the subsection are available for general governmental expenses."
Please stay tuned, as next week the Chamber will dispel more information about these two measures.
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Stay Informed in 2010, Buy a Town Hall Forum Pass
Happy Holidays! While you are trimming trees, wrapping presents, and thinking about the new year, you should start planning to stay informed in 2010 and sign up for the complete 11-month Town Hall Breakfast Forum pass today!
Besides great information in the forums, the pass will also get you a copy of The Inside Scoop. The Inside Scoop is a specialized report about Bend City Council meetings that goes far beyond the general information you find in the daily news. The scoop will help you to stay current on city issues affecting your business
Save money now and purchase the full year Town Hall Breakfast Forum pass for $220. This is $55 in savings! If you are interested in purchasing the Town Hall Breakfast Forum pass, call the Chamber today at 382-3221.
Join us for the January 15 Town Hall Breakfast Forum as we have a panel discuss Measure 66 & Measure 67. Before turning in your ballot on January 26, listen to what our panel of experts has to say in favor of and against these measures. Get informed and get your questions answered!
The Bend Chamber would like to thank you for supporting business advocacy in 2009 and hopes to see you back at the Town Hall Forums in 2010.
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In the News
Is Oregon's Recession Over?: According to the University of Oregon Index of Economic Indicators in October, Oregon's recession is over. Some of the drivers included a spike in residential building permits and an increase in consumer confidence. Tim Duy, Director of the Oregon Economic Forum and UO adjunct assistant professor, the index remains consistent with the end of the recession, however that has yet to translate into improvements in the job sectors. "More significant improvement in initial claims needs to occur before we see steady, consistent employment gains," he said. "Similar weakness is evident in employment services sector payrolls, which has been effectively flat for three months. While an improvement from recent declines, this indicator remains suggestive of weak labor market conditions in the near term."
IRS Offers Tips for Year-End Donations: Individuals and businesses making contributions to charities should keep in mind some of the following reminders from the IRS. Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of 2009 count for 2009. Also, checks count for 2009 as long as they are mailed in 2009 and clear, shortly thereafter. Next, make sure the organization you are supporting is qualified. Only donations to qualified organizations are tax-deductible. IRS Publication 78, available online and at many public libraries, lists most organizations that are qualified to receive deductible contributions. And finally, remember for all donations of property, including clothing and household items, get from the charity, if possible, a receipt that includes the name of the charity, date of the contribution, and a reasonably-detailed description of the donated property. If a donation is left at a charity's unattended drop site, keep a written record of the donation that includes this information, as well as the fair market value of the property at the time of the donation and the method used to determine that value.
Ice Safety Message from the City of Bend Fire Department: Recent frigid temperatures have caused ice to build up on many local waterways, including rivers, lakes, and ponds. The City of Bend Fire Department wants to remind residents while the area may appear to be strong enough to support weight, the actual strength of a sheet of ice may be far less than it appears. If you ever have a doubt about the ice you are about to walk on, DON'T GO. Walk around the body of water or find another way across it. If someone does fall through the ice, don't panic and call 911 immediately. Try to extend an object like a tree branch or rope, but don't enter the water. A bystander attempting a rescue could become a victim in a matter of seconds.
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Upcoming Events
December 12 - 13 - Holiday Magic moves to Summit High School!! Featuring Soloist Lindy Gravelle! A musical concert by the COCC Cascade Chorale and full orchestra to benefit CORIL and presented by SELCO Community Credit Union will be held on Saturday evening, December 12 and Sunday afternoon at 3 p.m. Director Jim Knox is describing this production as the "rebirth of Holiday Magic," now in its fifth year! "The music this year is filled with wonder, joy and peace and will be clearly presented throughout each performance," he said. The Summit High School Music Department will also be participating in the performances. Knox says, "The concert will include Mark Brymer's, "The Christmas Suite"- a wonderful work scored for choir, soloists, and orchestra." This special salute to the season will feature many cherished pieces such as: Sing we now of Christmas; What Child is this; Master in the Hall; Hallelujah Chorus; Jingle Bells and much more. Lindy's famous song, "Christmas Corsage" will also be featured. Tickets are for open seating and all reserved seats can be purchased through the Central Oregon Resources for Independent Living (CORIL) Web site www.coril.org or by calling the main office at 388-8103. All tickets will be at the bargain price of $15, a tremendous value! |
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