Bill Text: OR HJM13 | 2013 | Regular Session | Introduced

Oregon House Joint Memorial 13 (Prior Session Legislation)

Bill Title: Urging Congress to enact legislation that prohibits states and local governments from offering tax incentives to corporations or other businesses.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HJM13 Detail]

Download: Oregon-2013-HJM13-Introduced.html



     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

 LC 3536

                     House Joint Memorial 13

Sponsored by Representative BARNHART; Representative TOMEI

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Urges Congress to enact legislation that prohibits states and
local governments from offering tax incentives to corporations or
other businesses in exchange for promises of locating or
expanding facilities, retaining existing operations, meeting
hiring quotas or providing other future benefits.

                         JOINT MEMORIAL
To the President of the United States and the Senate and the
  House of Representatives of the United States of America, in
  Congress assembled:
  We, your memorialists, the Seventy-seventh Legislative Assembly
of the State of Oregon, in legislative session assembled,
respectfully represent as follows:
  Whereas it is a common practice throughout this nation to
provide tax incentives to corporations and businesses to relocate
or remain in communities in this country; and
  Whereas states, counties and cities are now providing more than
$80 billion annually in tax breaks to companies; and
  Whereas corporations exploit the fear of moving jobs overseas
to pit state and local governments against each other in
providing tax benefits that these governments can scant afford;
and
  Whereas there is little evidence that tax incentives are sound
investments that raise tax revenues in the long run; and
  Whereas tax incentives divert money from paramount obligations
that states and local governments must meet, such as education
and public safety; and
  Whereas state and local officials often have little information
about the track records of corporate beneficiaries of tax
incentives and do not know the extent to which tax incentives are
a deciding factor for companies in location or expansion
decisions; and
  Whereas competition between states and localities does not
increase overall economic value and amounts to a zero-sum game;
and
  Whereas corporations owe fiduciary responsibilities only to
their shareholders and legally cannot exercise judgment in
determining whether proffered tax breaks are prudent for the
communities in which the corporations locate; and

  Whereas many of the most sought-after businesses principally
engage in information services and can easily pack up and leave;
and
  Whereas the competition among states and localities in offering
ever-more lucrative tax incentives amounts to a race to the
bottom that robs states and localities of the means to provide
services that the public needs and expects; and
  Whereas, absent federal limits on the ability of states and
local governments to grant incentives, state and local government
officials will have little practical choice but to continue to
grant tax incentives that are no longer affordable; now,
therefore,
Be It Resolved by the Legislative Assembly of the State of
  Oregon:
  That we, the members of the Seventy-seventh Legislative
Assembly, respectfully request that the Congress of the United
States pass legislation that prohibits states and local
governments from offering tax incentives to corporations in
exchange for promises to locate or expand facilities, retain
existing operations, meet hiring quotas or provide other future
benefits; and be it further
  Resolved, That a copy of this memorial shall be sent to the
President of the United States, to the Senate Majority Leader, to
the Speaker of the House of Representatives and to each member of
the Oregon Congressional Delegation.
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