The United States is experiencing the largest demographic wave in its history.
More than 11,000 Americans are turning 65 every day. More than 30 million will turn 65 by 2030. Many of them are from Oregon, which has more than a half million citizens ages 55-64.
As this unprecedented surge of workers approaches retirement, we should be doing everything possible to make it easier for them to prepare for and achieve financial security.
Instead, Oregon’s November ballot presents a misguided measure that would make it harder and more expensive for Oregonians to achieve financial security through retirement.
If passed, the innocuously named Measure 118 would extract a 3% sales tax from companies with at least $25 million in Oregon sales in any given year.
That’s right. Many corporations would have to surrender 3% of their gross revenue, with complete indifference to profit or income, every year to the state of Oregon.
This mandate would essentially levy a hidden sales tax on all products in Oregon. There are no exceptions for food, medicine, insurance or even crucial financial protection tools like annuities, which people use to acquire guaranteed lifetime income through retirement.
Other vital forms of financial protection would be also hit if this onerous initiative passes including life insurance, disability income insurance and supplemental accident insurance, just for starters. Essentially, every product that Oregon workers use to provide financial protection for their families would be affected.
Oregonians are strong believers in the value of life insurance and annuities. Life insurers pay out $2.7 billion each year in life insurance and annuity benefits to Oregon families. That’s $7.4 million every day. Also, one million individual life insurance policies were in force in Oregon in 2022, averaging $212,000 in death benefit protection.
Making it harder for Oregonians to access affordable financial protection for their families makes no sense. Taxing the sales on these also makes no sense, especially on top of the rapid rise in the cost-of-living that has hit everyone in Oregon in recent years and which will only go higher with a tax on the sale of basic essentials like groceries and medical services.
If passed, Measure 118 would result in the largest tax increase in Oregon history. It would hurt Oregon businesses of all sizes and make it harder for families, including those nearing retirement, to achieve financial security. With today’s volatile economy and the uncertainties so many Oregonians are facing, now is not the time to introduce a costly experiment that will lead to higher prices and less economic growth. Measure 118 should be voted down.
Justin Delaney is Vice President and Associate Counsel of The Standard in Portland, Oregon.
