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Updated: Adams’ Proposal Targets Business Tax Reductions

Commissioner Adams' proposed changes, cosponsored by Potter, Saltzman and Sten makes investments in Portland's "small business and entrepreneurial class"

Portland, OR - New, smaller and Portland-based businesses - up to an estimated 9,000 of them - will get $3 million worth of tax relief under a plan proposed by City Commissioner Sam Adams and cosponsored by Mayor Tom Potter and Commissioners Dan Saltzman and Erik Sten.

"The foundation of a strong, sustainable Portland economy is the family-wage job," Adams said. "Portland businesses are not fleeing the City, but job creation and wage rates in Portland lag behind those in the region as a whole. Portland can help boost job creation among smaller, locally-owned businesses by reducing their city business fee burden."

The Resolution will be considered by the Portland City Council on Thursday, January 18th, 2007 at 3:30pm, at Portland City Hall, 1221 SW 4th Ave.

Adams' proposal to reform the Business Licensee Fee offers a three-fold approach:

• Increase the Owners Compensation Deduction from $60,000 to $80,000

• Increase the Gross Receipts Exemption from $25,000 to $50,000

• Institute a progressive minimum tax increase based on the number of employees, gross receipts in Portland or a combination of the two options. Revenues generated from the minimum fee increase would be allocated for further increase to the Owners Compensation Deduction to $125,000. The Resolution states, "the Portland City Council intends to increase the BLF Owner's Compensation Deduction to $125,000 within five years."

"Over the past two years, I have been working on tax reform that would help address the inequities of the BLF and focus tax relief for small businesses," Adams said. "These changes accomplish both of these goals."

Relevant Documents


AttachmentSize
Exhibit A BLF.pdf517.7 KB
5-Yr Financial Forecast GenFund FY07 120706.pdf144.87 KB
Final BLF to be filed.doc34.5 KB
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small businesses tax relief - a bit of a disconnect here

By what calculation are new and smaller businesses presumed to be the source of "family-wage" jobs any more than just more service sector positions? By what means is the tax relief indexed to the likelihood of a small business creating something other than 8-10 dollar/hour positions?


What happened to the name the tram contest?

I have called and left voice messages, emailed, what happened to this?


Name Announcement

The tram name selection committee has been whittling down the proposals and will make a final decision soon.

The names will be announced at the grand opening in a week.


This is nice, but it is only

This is nice, but it is only a beginning. I know people who purtposely have decided to start businesses in LO and even Beaverton which are way cheaper tax-wise than Portland.

Stick with it, because they will still be going there until Portland reaches parity with surrounding communities. Unfortunatley the privilege of working in Portland is not worth a premium.


Still asking the question

What IS a family wage job??? Do your wages increase if and when your family increases?

The term 'family wage' is a nice, touchy-feely term without a true definition behind it. Can someone PLEASE tell me how much a 'family wage' works out to per hour? As I stated above, does it increase merely for increasing the size of the family?

One more thing - businesses ARE fleeing Portland; however, this is a good move by Sam and maybe it will stop the bleeding or at least slow it down.


It seems pretty simple to

It seems pretty simple to me. A person/family working forty/eighty hours a week, with no additional income, should be able to afford decent housing, food, utilities, transportation, health care, and a bit of leisure.

Depending on the size of your family, this amount would be variable. There are various formulas for calculating such an amount. PDC has numerically defined this as one that provides a minimum of two times Oregon’s minimum wage plus benefits.


Thanks Jesse

At least someone attempted to answer the question. I'm not satisfied with the answer but it was an attempt and I thank you for that.

So basically you (or the folks who's formulas you talked about) are saying - every time you have a kid you get a raise, is that correct? If it is correct then it is like old time welfare, you don't need to better yourself or improve your skills, you just need to have another dependent to get a raise, is that right?

Which brings us to some of the other items that you mentioned that would need a definition. What is decent housing? My definition might not be in line with yours, there are certain levels that we might agree are too low, but how and at what level do we say ... there is the line? And what if the person living there disagrees with our opinion? Food, what is a the right amount for that? I supply a family of 3 with healthy dinners every night and we eat on about $60 a week - not too much going out, but we're not starving. What is your food budget? What about folks who think they need more than whatever we agree upon, are we suppose to continue to give them raises until they reach the 'level' of eating that is right by them? Transportation? Is Tri-Met our standard? What about the person who says Tri-Met doesn't come close enough to either their home or their work - they want a car, should we increase their pay so they can afford a car, gas, maintenance and insurance? What about the guy who gets a job selling things and points out that he really can't do that via Tri-Met, he NEEDS a car, so we need to keep raising his pay until HIS needs are met?

Do you see where the vague term 'family wage' just doesn't cut it?

You want/need more money, better yourself to where you have more skills to offer employers. Then they WILL pay you more - you shouldn't get more money just because you propagate.