Democratic Momentum Against Metro Wage Tax Surging
Oct 22, 2020
FOR IMMEDIATE RELEASEOctober 22, 2020 Contact: Jeff ReadingCommunications…
Vote No on 26-218
Stop the Metro Wage Tax
It’s About Our Priorities, Our Paychecks and Our Trust.
With families struggling to make ends meet, Metro’s regressive new tax will impact wages and benefits for 70% of all workers in the Portland area. This is not a tax on profits or the wealthy – it is a permanent new tax on working people’s wages and benefits.
What is the Metro wage tax measure?
- Measure 26-218 is the largest tax increase in our region’s history, during an unprecedented economic downturn.
- The measure creates a new, permanent $5.2 billion tax on the wages, benefits, and retirement of employees in Clackamas, Multnomah, and Washington counties.
If it passes, what does the Metro wage tax measure do?
- It obligates employers and their employees to pay more but doesn’t obligate Metro to keep its promises about who to pay, how much the rate is, or how the money is spent.
- The measure authorizes the Metro Council to create a new permanent tax not just on employee wages, but on benefits and retirement in the tri-county area.
- It even taxes employers outside the tri-county area who provide services inside the tri-county area.
- Each year the Metro Council is free to increase or decrease the tax rate up to .75 percent.
- Beyond being prohibitively expensive, it is unworkable for employers, requiring a new accounting system to apply the tax to the wages, benefits, and retirement of all their employees.
What does Metro plan to spend this money on?
- Light rail to a shopping mall, primarily. Other projects as money allows.
- The spending plan’s single largest expenditure is light rail line along the I-5 south corridor from Portland to the high-end Bridgeport Village shopping mall in Tigard.
- Construction of the line will forcibly condemn an entire community, destroying up to 160 homes and 130 businesses and displacing more than 900 employees.
- While Metro wants to spend billions on light rail, it has neglected to address concerns on I-5, I-205, US-26, or OR-217.
- Only 3 percent is dedicated to congestion relief.
- In contrast to previous Metro ballot initiatives, spending is not distributed proportionally among tax-paying counties – most of the Metro’s spending benefits Multnomah County.
- Up to seventeen transportation projects are planned, yet the measure obligates Metro to fund none of them.
- Even if all the projects are completed, the tax continues and can be spent at the Council’s discretion without voter approval.
Who pays the wage tax?
- Nearly everyone but Metro itself. They exempted themselves and other government entities.
- Employers with 25 employees or more — including nonprofits, churches, charities, schools, colleges, and small businesses — and their employees will pay this tax on wages and benefits.
- Employers outside Metro with staff who perform work within Metro’s boundaries.
- Franchises whose franchise is part a business with more than 25 employees.
Newspapers Agree – Wrong Tax, Wrong Time
Newspapers editorials are united in opposition to Measure 26-218.
“Would not move the needle on climate change…”
“Too many fatal flaws..come back with a smarter plan.”
“Job Creation Claims Are Misleading”
“Does virtually nothing to reduce carbon emissions”
“Encourage people to drive more”
“Reckless during an economic downturn”
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Our Stories
Learn why these community leaders, business owners, workers, elected officials and nonprofits plan to vote no on 26-218!
Business cannot take on additional taxes at this time and the projects need complete review given what our post-pandemic commuting/work/travel needs will be. We are at least a year or two away from being able to assess what will be needed. We cannot take additional job losses in our economy which is exactly what will happen if this passes.
Lorraine Clarno, Beaverton Chamber of Commerce
Many of us midsize employers are paddling hard upstream to make sure we mitigate the economic hardships brought by the virus. The people promoting these very unfair taxes perhaps don’t understand that they are not only alienating employers like me, but they are making life a lot more expensive and limiting opportunities for the people on the lower economic scale.
Manuel A. Castaneda, PLi Systems
When the legislature was digging out of the last recession, Oregonians told me they had three priorities: Jobs, jobs and jobs. As we wrestled with policies to get people back to work, a payroll tax was considered taboo. It was never considered by democrats or republicans because it was widely seen as a tax that penalized employers for hiring people. This was exactly opposite of what Oregon needed. So, I was surprised Metro decided upon a steep payroll tax during the worse recession most of us have ever seen.
Senator Mark Hass
I built my company from scratch and I’ve fought to keep it strong even during this pandemic. We simply can’t absorb a new payroll tax without being forced to either cut jobs, cut wages or both. I don’t want Metro’s new tax to force me to make this decision. It’s heartbreaking.
Tony Iyke, Owner, The House of Rose at Bridgeport Plaza
Democrats Agree – Wrong Tax, Wrong Time
“As the Chair of the Oregon Senate Revenue Committee, I don’t believe taxes are evil and I strongly support a transportation system that delivers health and economic benefits. But Metro has done a poor job of uniting the two in this proposal. It needs to be sent back to the drawing board.”
— Senate Revenue Chair Mark Hass
“Throughout my career, I have been a steadfast supporter of transportation. There are absolutely improvements we need to make, including fixing bottlenecks in the region. But this is too big, too bloated, and too burdensome.”
— Budget Chair Betsy Johnson
“I’m definitely not anti-tax or anti-transit. But when the pandemic hit and the recession followed, that’d be a time to reassess both what is needed and how it affects the various folks who work and would be affected by it. I don’t see that happening and I think the collaboration that’s really needed has dissipated, so I’ll be voting no.”
— Treasurer Tobias Read
“It seems ridiculous to be raising taxes on business in the middle of a pandemic on top of other taxes that are coming due,” said Schrader. “It makes no sense to levy a new payroll tax that discourages employers from hiring new people.”
— Congressman Kurt Schrader
“I’m inclined to vote no. It’s not the fundamentals of it so much as it is the timing – making sure our economy has a robust recovery.”
— Representative Janelle Bynum
“As the Chair of the Oregon Senate Revenue Committee, I don’t believe taxes are evil and I strongly support a transportation system that delivers health and economic benefits. But Metro has done a poor job of uniting the two in this proposal. It needs to be sent back to the drawing board.”
— Senate Revenue Chair Mark Hass
“Throughout my career, I have been a steadfast supporter of transportation. There are absolutely improvements we need to make, including fixing bottlenecks in the region. But this is too big, too bloated, and too burdensome.”
— Budget Chair Betsy Johnson
“I’m definitely not anti-tax or anti-transit. But when the pandemic hit and the recession followed, that’d be a time to reassess both what is needed and how it affects the various folks who work and would be affected by it. I don’t see that happening and I think the collaboration that’s really needed has dissipated, so I’ll be voting no.”
— Treasurer Tobias Read
“It seems ridiculous to be raising taxes on business in the middle of a pandemic on top of other taxes that are coming due,” said Schrader. “It makes no sense to levy a new payroll tax that discourages employers from hiring new people.”
— Congressman Kurt Schrader
“I’m inclined to vote no. It’s not the fundamentals of it so much as it is the timing – making sure our economy has a robust recovery.”
— Representative Janelle Bynum
News & Media
Add Kurt Schrader and Janelle Bynum to List of Democratic Elected Officials Against Metro Transportation Tax
Oct 21, 2020
U.S. Rep. Kurt Schrader (D-Ore.) told WW in an interview today he…
Opponents Release Poll Showing Declining Support for Metro Payroll Tax, Increased Opposition
Oct 19, 2020
Business groups fighting Metro’s proposed payroll tax on employers said…
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In the face of the highest unemployment in 50 years, we can’t afford a permanent Metro wage tax that will hurt our non-profits and businesses, reduce household income and benefits, and kill jobs. Make a donation today to Stop the Metro Wage Tax!