Oregon is set to join the multitude who are currently sending out stimulus payments to eligible residents across the nation. Stimulus payments are issued to eligible residents who are in need of financial assistance to meet expense costs. Additionally, they are distributed during times of low economic spending to encourage people to spend money and increase the flow of money into the economy.
Measure 118 a new initiative by Oregon
Recently, Oregon, like many other states across the nation, has been hit by record high inflation rates and housing costs. The governing body of the state has been looking at ways to alleviate these increased costs for residents of the state. The state officials are currently preparing to vote on the proposed Measure 118 in November. This new piece of legislation would mean a one-time payment would be distributed to eligible residents if passed.
Supporters of Measure 118 are optimistic that the legislation could alleviate financial pressure currently being experienced by many residents of Oregon. Measure 118 has received support from a variety of individuals and organizations, including tenant advocacy groups like the Community Alliance of Tenants and Portland Tenants United. Housing prices are becoming an increasing concern across the nation.
$1,600 payment to be voted on in November
If the legislation passes, individuals would receive a stimulus payment worth $1,600. “Measure 118 is a lifeline for Oregon renters facing skyrocketing costs,” said Kim McCarty, Executive Director of Community Alliance of Tenants in a statement. “This rebate provides immediate relief in a volatile and often predatory housing market. For too many, a $1,600 check is the difference between a stable home and homelessness.”
Organizations like The Community Alliance of Tenants and Portland Tenants United are focused on advocating for affordable housing as well as renters’ rights. Aling with homeowners, renters are also currently facing difficulties in the housing market. Many people are being denied home loans, yet they are paying rent which can be up to three times the amount a mortgage repayment would be.
The the Oregon Office of Economic Analysis has recently revealed that nearly half of all renters in the state spend 30% of their income on rent. Additionally, nearly 50% of participants in the survey have indicated that after paying rent, they do not have enough income to cover all their necessary living expenses including food and medicine. The $1,600 payment could make a significant impact in helping residents out in reaching their living expenses.
Increase in corporate tax rates proposal
To fund the initiative, legislators are proposing an increase in corporate tax rates. The proposal outlines that a minimum raise of 3% to cooperate tax rates would need to be implemented in order to fund the payments. This is estimated to produce revenue of over $25 million. Companies and business owners, particularly those with narrow profit margins, are concerned how this raise in tax may slash profits but also affect consumers.
Other argue that the tax hikes could damage the local economy. While the initiative is intended to provide relief for residents, it could have repercussions that cost of living is increased because of the corporate tax increase. To make up for the increase in expenses, business may have to raise their prices which introduces further problems with expenses for residents and makes the buying power of the payment less.
If the measure is approved, the first payments would only be released in 2026. Though not without challenges, the proposal is bringing law makers’ attention to the cost of living crisis many residents of the state are experiencing. This then may motivate for additional measures to be put into place to support low- and middle- income families in particular.
