In Oregon, they're pushing Initiative Petition 28, which would impose perhaps the highest corporate tax rate in the nation - not on corporate income, but on gross receipts. This, we're assured, is the only way to make those "greedy corporations pay their fair share". The tax will apply only to gross receipts of $25 million or more that are derived from sales within the state; this affords Nike a nice loophole because, huge as they are, most of their sales are made outside the state.
But then there's the "greedy" Fred Meyer stores:
Melinda Merill, a spokeswoman for Fred Meyer, which is owned by Ohio-based Kroger, said IP 28 would have a “huge” impact on the company. Despite annual sales in Oregon north of $2 billion, Fred Meyer’s net profit margin is on average 1.8 percent, she said.
A 2.5 percent tax on gross revenues in excess of $25 million would wipe out that profit completely, so the company most likely would have to pass the cost of the tax along to consumers or cut back on staff costs, she said.
There's a surprise; who'd ever have thought it? Once again, the public employee unions are claiming that "we" won't feel anything because they're only going to tax greedy big business.
And once again, the outcome would be: higher prices and fewer jobs. But the public employee union folks won't feel anything, they'll just push for more tax increases so that they can afford to pay the higher prices. And since they won't be the folks losing their jobs....
As usual, when the tell you "we" won't feel anything, what they really mean is they won't.
