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Oregon Slams the Gates on Ballot Measure 118’s Trojan Horse Tax

By Mattias Gugel, National Taxpayers Union

Oregon voters sent a powerful message this week, throwing out Ballot Measure 118 and shutting the gates on a tax poised to sneak in under false pretenses—with nearly 79 percent of the vote. 

Measure 118 had been sold as a one-time rebate that would give every Oregonian a $1,600 check. Credit to the voters for seeing the ballot measure for its true nature—a Trojan horse hiding new taxes that would increase prices for groceries, rent, utilities, and everyday essentials. 

To pay for the rebate, supporters wanted to create a new tax on businesses based on gross revenue, meaning even the smallest local grocery stores or family-owned shops would pay taxes on total sales, not profits. This tax would’ve been brutal for businesses that operate on slim profit margins, like the neighborhood grocer. They would have been forced to raise prices or close their doors. And who would end up paying? Oregon families stuck with higher bills for their day-to-day essentials.

But Oregonians saw it coming. They knew Measure 118’s rebate was too good to be true. A one-time check sounds nice, but voters weren’t willing to trade short-term relief for long-term pain. Instead, they recognized that this measure was a costly trick, hiding new, permanent taxes that would raise prices in every corner of Oregon life. By slamming the gates shut on Measure 118, voters saved their communities from higher costs, showing that they value lasting affordability over quick, short-lived payouts.

Measure 118 also highlighted a recurring truth about government programs. Once established, they rarely shrink and often grow, ballooning in cost and scope. Oregonians had seen this pattern before and weren’t about to let Measure 118 sneak in as another budget-busting expense that would require more tax hikes. They chose to keep control over their wallets and make clear that if the government wants their trust, it needs to focus on policies that support—not tax—Oregon families.

Oregon elected officials should hear the message voters are sending: stop with the tax tricks. With broad bipartisan opposition—garnering 24 percent more than the vote Kamala Harris received in Oregon for the presidential election—it’s clear that taxes matter deeply to Oregonians. Even policymakers in other states ought to take note: real relief means fostering economic conditions that help businesses and families thrive, not radical government giveaways. That means focusing on lowering taxes, fewer regulations that drive up costs, and housing policies that support affordability. Oregonians want policies that bring sustainable, everyday savings—not shiny promises that only lead to more expenses.

By slamming the gates on this hidden Trojan horse tax, Oregon voters have chosen a stronger, more affordable future built on genuine economic health, not hollow promises.


Mattias Gugel is the Director of State External Affairs for the National Taxpayers Union.