Of course it's  a flawed solution. No solution is perfect. It will need to be amended, tuned up over time. But at least it is a solution, and the structure and concept of it are smart and elegant. Instead of having consumers pay the entire tax, like a sales tax, it leverages contributions from corporations, and through reduced federal tax payments for corporations, it leverages money from the federal government. It stabilizes Oregon's tax revenue for the future, and it adds the missing third leg to Oregon's tax structure.

As for your first point, the tax is actually on gross sales, not on profits. Profits will not be "eaten up," but some companies (fewer than one percent of companies registered for business in Oregon are affected by the tax) might have to raise prices to pay the 2.5% of tax on sales over $25 million in order to sustain current profits.

As for your second point, the text of M97 states specifically that the revenue shall be used for schools, healthcare, senior care.