Measures 66 & 67 on Oregon's ballot in January may seem complex, but there are some simiple formulas to break it down into understandable numbers.  Oregon state budget services that would be cut if the measures fail is a whole seperate discussion.  The purpose of this post is to make it easier for people to understand the tax impacts on various types of tax payers.

There are four changes made by the two measures:

1. Taxable unemployment compensation up to $2,400 received in 2009 is exempted from tax.  This would reduce taxes for individuals who recieved unemployment compensation in 2009.  The amount of reduction depends on a number of factors, including the tax bracket the individual falls into.
2. Individual taxpayers would see an increased marginal tax rate on taxable income over $125,000, and couples filing jointly would see an increased marginal tax rate on income over $250,000.
3. Certain types of business entity (Partnerships, LLCs) would see a new $150 annual tax payment.
4. C-Corporations would see a new minimum income tax graduated based on Gross Revenues.
5. C-Corporations would see an increased marginal tax rate on taxable profits over $250,000.

Below is a calculator designed to allow you to estimate the tax impact on various business scenarios for 2009 to 2011.  The idea here is to allow a very simple calculation of what the new tax impact would be on businesses or individuals if Measures 66 & 67 on the January ballot pass.  It is my belief that the impact on individual businesses is minimal, making the argument that jobs would be lost a farce.

In viewing the impact on various businesses, consider what you would recognize as a small business, and recognize that net profits are generally well below 10% of net revenues (often around 3%).  If you own a business, enter your own actual figures.

Note also that the marginal tax rates used decrease in 2012.

Additional Note regarding Non-Profits:  Non-Profits are Tax Exempt, so do not pay any income tax.  This means that Non-Profits are unaffected by the measures, as they are already exempt from paying the minimum corporate income tax.