Today, the State of Oregon joined other high tax states in choosing to have their huge budget hole filled by the least number of people possible. Measures 66 & 67:
- Increase the minimum corporate tax by over 1000%
- Increase the state personal income tax by almost 20% for people making over $250,000 per year.
The TV ads made it clear to the masses that “If your family makes less than $250,000 per year, you will pay nothing!” Translation? Let the business owners pay the bill.
It will come as no surprise to you that the city of Portland and the state of Oregon are struggling to attract and keep new businesses. Rather, long time businesses are scrambling to leave Oregon and are moving to neighboring states like Nevada
- Where taxes are low and…
- Legislation is geared to encourage the formation of companies and to protect their management teams.
I have an unusually good seat from which to watch all of this unfold as I live in Oregon and work in Nevada. At my company we have seen this exodus for years as California companies move over the boarder to set up shop in the Reno area.
My son Adam, who was sitting in a college business class this morning when he heard the news about passage of the tax hike, texted me and asked, “What does this mean for us?” I think he asks a good question. As business owners, we need to do our part to help our communities. The trouble is that too many politicians have never run a business or had to make a payroll. They make decisions that attempt to fix an immediate problem, but end up hurting everyone in the long term. They cook the goose that lays the golden eggs.
We all know that in the end it will not be the “wealthy” that will pay for this tax increase. The rank and file employees will take the hit. Jobs will evaporate and employers will have to cut back, close up or move on.
“What does this mean for us?” I would like to hear your answers to that one.
Small Business 411 
Could not agree more. Great article. Thank you.
What would Oregon’s revenue situation look like if we had a sales tax that could capture revenue from visitors and residents alike?
Oh, that’s right. A sales tax would actually mean that people with certain vices would pay more. And everyone knows that Oregonians love their vices.
As long as Oregon’s current tax system is in place, it will remain too expensive for the poor and rich alike. Poor people can’t buy a house because the permit fees are three times what they are in other states, so builders have no incentive to build affordable homes in our state. Lower income people, therefore, have few choices about where to live.
Example 1: A permit to build a modest home in Clackamas County (not the center of culture, mind you), costs $34,000. That same permit costs $14,000 in Pierce County, Washington (near Tacoma and Seattle).
Example 2: Land for building also costs twice as much in Oregon as it does in the Seattle market.
Rich people are now being dis-incentivized to create jobs and make money. Last time I checked, ambitious people should not be punished for their ambition. Should poor people be punished further because they may be slothful? Or, just unlucky?
Oh, and who said “corporations” should be singled out too. Last time I checked, every small business in the nation was a corporation. Corporations = jobs. Duh.
Folks, someone has to pay taxes to cover the many services all of the citizenry uses. The only fair tax is some kind of sales tax. Because one way or the other, “the man” is going to get his piece.
Finally, our former governor – may he resit in peace – has found a way to keep people out of Oregon without putting a sign at the California border. Bless you Tom McCall. You know not what you’ve done.
Great comments Nathaniel! Oregon needs a sales tax!