Had some friends over last night for desert & hot tub. Due to the business tax measure the company he works for (150+ employees) is making plans to move to Nevada. The vast majority of the employees are not going with them and will join the ranks of the unemployed. In addition, due strictly to the new tax, the parent company of mine will have 3 rounds of layoffs and jettison over 200 employees. I know this is what the libs wanted, but it's painful to see from my perspective. See, the message that was not gotten thru is that for S corps, the bill has little effect, for the most part. But for C corps, it's devastating and many companies will be leaving. The reason being is that C corps are now being taxed on revenue and not profit. As an example, the parent health care company that owns our little group brings in about $1.5 billion in revenue. However, since we lost $30 million last year our taxes would be based on the loss. But now we have to pay tax on the $1.6 billion coming in the door- or an additional $16 million in tax on top of the $30 million loss. We can absorb it via permanent layoffs like a lot of other C corps, but some will have to close or move. Oregon is a whacked out state.
BP, BP, BP. Shouldn't you at least try to get your facts straight before you post nonsense like this? A corporation with revenue of $1.5 billion and no profits would pay the $100,000 minimum tax. Not $16 million. $100,000. Your company is going to lay off 200 people to pay a $100,000 tax bill? People at your company earn $500 per year? I mean really. Look it up. Jesus. barfo
I'll be really honest, barfo, this is what I was told by someone in the CFO's office. I do admit I really don't know. However, my friend's company is moving for the same reason so I'm presuming these people know what they're talking about. Maybe they're both lying to me, I really don't know. As to looking it up and reading the bill, yeah I probably should but really don't have the time. So if you;re right and everyoine else is wrong, then that's one point for you.
Companies use excuses to lay people off all the time. Mine used 9/11... started laying people off before it could have had any impact... etc... I've heard plenty of excuses... economy... profits... please shareholders you name it. Mostly it is just cleaning house. It is easier for them to point the finger at something else because to deflect anger. The cost of moving a company is significant... way more significant that the extra tax could be... but like barfo I highly doubt there *is* any significant impact. Moving when your are having financial troubles may not be too bright... GI Joes was partly put under by on untimely change of their name to Joes.
This chart is helpful in determining the impact of Measure 67 on taxes for a given business: http://www.ocpp.org/2009/20091102Measure67DecisionTree_fnl.pdf
The way I am reading that is worst case 1.3% additional tax.... so if they paid 100K in taxes that would be what... an increase of $1300?
Well, that really makes me think I wasn;t getting the straight scoop and that Barfo may very well be right.
Will do! Thanks for the encouragement. Eventually, we'd like to get to the point where all your friends pretend to you that they're laying people off, not just one. Then, this will be a great nation.
IMO, the current liberal leaders are systematically working towards heavily damaging this nation....economically speaking. We're gonna struggle paying just the interest along on the mounting deficit.
I blame the Bush Republicans for starting this mess...and the current Dems for "potentially" sending it into the stratosphere.
Where is the debate on the perfect tax rate? It does seem that on one side it's always CUT CUT CUT taxes and in the other side it's always (as maxiep said) "just a little more." It's always OREGONIANS AGAINST JOB KILLING TAXES vs "Won't somebody think of the poor children!"
Our company laid off 2 people because of the business climate . . . the layoff came literally less than 48 hours after the tax measured passed. Liberals can call it a lie . . . which I find ironic given the deceptive campaign techniques to pass the measures.
"Business climate?" well, Oregon is rated 14th best state business climate in the country as far as regulation & taxes...so their comment more likely means "we aren't selling enough".
When was that rating taken? And I would love to see a poll of business owners and where they rank Oregon when it comes to business climate. There is a serious division in this state between businesses and public employees. And every time the public employees' union win a victory via election(which is often), it further divides these two groups . . . especially the way they go about campaigning. It's fuuny because somehow public employees are painted as the underdogs. One poster even posted that measures got passed and the the little guys overcame all the big money spent to fight this. The truth is the pulic employees union is the bully with all the cash and influnece and lillte business guy has very little influence on a political scale.
