252 profitable Fortune 500 companies who report state-level corporate income tax liabilities on their profits. Of those, nearly one-third (71 of the 252) managed to pay no net state income taxes in at least one of the years from 2001 to 2003. Merrill Lynch, who operates in Oregon, paid no state income taxes from 2001 to 2003, yet they amassed $8.8 billion in pretax US profits in those years. The latest projection is that profitable corporations will receive a $43 million kicker tax cut. With 90 percent of the tax cut going to fewer than four percent of Oregon's corporations. Companies with a presence in Oregon, including Merrill Lynch, Sears, Southwest Airlines, Charles Schwab, IBM, New York Times, Marriott International, and Ryder were among the companies with no net state income tax liability in at least one year out of the three-year period
Two-thirds of Oregon's corporations pay Oregon's $10 corporate minimum tax. In the 2005-07 budget cycle, corporations will pay just 5 percent of all Oregon income taxes, leaving 95 percent to households. In 1973-75, corporations paid 18 percent of income taxes," Oregon's profitable corporations were still paying taxes at the 1973-75 level, Oregon would have $1.8 billion more for state services in the upcoming budget period if they even paid at the older rates.
The bottom line is Oregon is allowing corporations to rape the tax system at the expense of the individual taxpayer, while most taxpayers are struggling to make a living and pay their fair share of taxes our government is allowing the huge corporations a free ride. These huge corporations who receive many tax breaks like Enterprise zone and or Urban renewal status do not pay property taxes for many years, and then do so at a reduction through deprecation. While the average taxpayer is given the job of making up the shortfall, all the while the huge corporations are making record-breaking profits.
A good example of corporation welfare is right here in our own county, the taxpayers gave Boise cascade $200,000.00 to help keep the company solvent, they in turn sold out to another company to the tune of about $20 million, did Boise re-pay the county for their efforts? The answer is a simple NO! The taxpayer's charitable donation cost them $200,000.00 that money could have been used more wisely, the county also reduced Boise's taxes every year, at times more than $50 + thousand.
Columbia County has been involved in many intergovernmental agreements that have cost you the taxpayer thousands of dollars each year and through contract periods. We have the failure of REDCO, the failure of the Wanna Mill venture deal between Columbia County and Clatsop County. The county has refused to execute tax collection on several corporations that site in this county, again costing you the tax payer, millions in tax revenues that could be used to maintain roads, pay for schools, and other services that the good citizens are entitled too. Now that the county's residents have suffered through yet another flood the money that has been virtually handed back to these Fortune 500 companies could have been used to help the flood victims/ repair roads/bridges etc. instead it has been handed back to the greedy corporations with out a second thought.
While the county cries about low coffers, failing roads/bridges, inadequate schools, they have at their fingertips the means to address and correct some of our problems but fail to do so.
Corporate welfare is alive and well in the state of Oregon and thriving in Columbia County.
Hopefully in this coming New Year things will change for the betterment of our fellow citizens, but in order for this idea to succeed we must have citizen involvement, remember YOU are the government with out your involvement things will stay as they are.
Wishing You, and You're family a Healthy and Prosperous New Year!