Monday, May 17, 2010

Remember 66 and 67 institute a 10% Tax on Gross Revenue of the business, not the NET profit after expenses. Say you have a wholesale business that buys $100,000 dollars of products that you resale and distribute for a GROSS REVENUE of $120,000 dollars The tax from 66 & 67 will cost you 10% or $12,000 to send to the state of Oregon, Leaving you $8,000 of profit. Will you stay in business long? How do you modify your business methods to generate that lost profit you need to stay in business? Charge more for your product? Less customers will buy from you when you raise your prices, further deflating your profit, while the state of Oregon continues to TAX your "GROSS REVENUE" If you business survives on a razor thin margin of less than 10%, after paying 10% TAX to the state of Oregon, where is the profit and reason to stay in business. There is none! Time to close the doors or move your business out of state.

Today I am finishing out my Oregon mail in ballot. With an eye to Taxes.

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