Oregon’s top Democratic leaders Tuesday announced their opposition to Measure 118, which would raise corporate taxes to give every Oregonian an estimated $1,600 rebate per year if passed in November.

In a joint statement, the four powerful lawmakers said the proposed measure to create the state’s first universal basic income program would hurt companies of all sizes, hamper state government and lead to higher prices for Oregonians, effectively doing more harm than good.

“In these tough times, we all want working families to get every break they can, but Measure 118 is not the answer,” House Speaker Julie Fahey, House Majority Leader Ben Bowman, Senate President Rob Wagner and Senate Majority Leader Kathleen Taylor said in the statement. “We have grave concerns it will slow job growth and cause cuts to critical services like road maintenance, firefighting, and addiction recovery.”

The Democrats joined a bipartisan list of nearly 50 Oregon lawmakers and more than 200 companies and business interest groups that have expressed their opposition to the proposed measure.

“It is a tax so bad that even prominent Democrats stand with Republicans in rejecting it,” House Republican Leader Jeff Helfrich of Hood River said in a statement to The Oregonian.

Measure 118 would establish a 3% tax on corporations’ sales in Oregon above $25 million and distribute that money equally among Oregonians of all ages. If passed, the tax would generate $1.3 billion of new revenue in the biennium that ends next June and substantially more in the future, according to an analysis by the Legislative Revenue Office published in July.

Proponents of Measure 118 say it would relieve some of the financial burden on low-income Oregonians and require large corporations to pay their fair share in taxes. The campaign has received significant funding from out-of-state supporters of universal basic income and endorsements from some Oregon progressive groups.

The new tax and rebate system would dramatically alter Oregon’s tax system because individuals could claim the money as a refundable tax credit, reducing the state’s income tax profit and impacting funding for multiple state programs.

Proponents of the measure originally estimated and advertised the rebate at $750 per Oregonian annually. As Willamette Week first reported, they revised that number to $1,600 per resident after the Oregon Department of Administrative Services published a financial impact report of the measure in July.

Statewide business association Oregon Business and Industry is leading an opposition campaign against the measure, No On Measure 118. Nearly 200 companies have signed onto the opposition campaign, spanning from corporate heavyweights like Nike and Intel to small-business groups representing numerous industries.

Some lawmakers and critics have also raised concerns that the top donors of the measure are from California. The measure’s largest contributors are two Los Angeles companies controlled by investor and universal basic income fan Josh Jones, which collectively contributed nearly $575,000 to help get the measure on the ballot.

“It’s clear that this California-funded initiative has concerning, potentially dire implications for the critical services that hardworking Oregonians rely on,” the four Democratic leaders said in their statement. “As a matter of public policy, we believe this is a bad deal for Oregonians.”

The third largest source of contributions are the foundation and mother of Gerald Huff, a software engineer and advocate of universal basic income from California who died in 2018. The foundation and Gisele Huff have contributed $90,000 combined.

In an email to The Oregonian, Gisele Huff said she decided to support the ballot measure campaign after hearing the “inspiring origin story of this important legislation, where a diverse group of Oregonians came together to initiate a ballot measure with the goal of creating a stronger Oregon. … My work in funding small, grassroots work across the country is a continuation of (Gerald Huff’s) legacy and my own belief in the importance of a more equitable and just society.”

The measure has received little support among Democratic groups in Oregon, which tend to support liberal programs like universal basic income. The campaign website for Measure 118 lists endorsements from eight progressive organizations in Oregon, including the Oregon Working Families Party and the Oregon Progressive Party, but no lawmakers. Gov. Tina Kotek has also expressed opposition to the measure.

Reached by phone Tuesday, Oregon resident Antonio Gisbert, the lead petitioner of Measure 118, said he was not aware of the announcement from Democratic lawmakers and declined to comment.