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.