By Michael Mazarov of the Center on Budget and Policy Priorities. The bill is being promoted as a valuable economic development tool. A review of the evidence suggests there is little reason to expect significant economic growth from a single sales factor. The proposal also primarily benefits a few large multi-state corporations. Business-supported and academic research concludes that business taxes have little or no impact on economic growth.
Taxes matter little because they constitute such a small part of businesses' costs.
Furthermore, the public services that will be reduced make an important contribution to economic development. House Bill 2281B will further limit Oregon's ability to meet the state's needs in education, health care, and other public services.