So a grocery store that makes a 2% profit will be taxed 2.5% on any sales above 25 million gross? So they will make 2% profit up to 25 million, and then start losing money by selling more?
Living in Oregon will get tough when no one sells food any more...
Grocery was the first industry that came to my mind. These people are idiots.
See, this is where unions are really bad at math... You back this tax measure to shore up the embezzlement of public funds known as “public employee benefits” while at the same time virtually ensuring that any medium to large business in the state has to slash the one cost they can control: employee costs.
So yes, there will still be markets selling food - just at a slightly higher price and with a much longer line as fewer employees will be on hand.
Just imagine how much fun it’ll be come the holidays when companies don’t hire the seasonal employees to make shopping easier as why lose your profits?
So they run business as usual up until just short of 25 mil then put everyone on unpaid leave, declare unsold inventory as a tax break loss and shut down for the rest of the year. Kind of a Venezuela type of thing.
Or the prices people pay will go up when you can only get food from local bodegas that sell it at a higher profit margin due to lower volume.