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Oregon Tax Increase

I found an interesting piece on Oregon’s ridiculously short-sighted new tax increase to ‘increase tax revenues’.  Of course, all it will eventually do is drive businesses and people out of Oregon and therefore reduce the tax base, and reduce tax revenues.  The letter below is from a post at MISH’S Global Economic Trend Analysis, where I found the story.  It is from an Oregon business owner who will soon be leaving the state.  Check the underlined part about the gross revenue tax – shocking.

Don’t know if you noticed but Oregon narrowly passed another tax increase today. As a business owner for 25 years in Oregon, I’m moving out, going to Washington. Many other business owners I talk to are saying the same thing. They are all getting out. One of them refused to renew his commercial lease until seeing the results of 66/67 tax measures. He’ll be moving out also.

Tektronix last year decided to get out as well, and they are moving 80% of what is left to Shanghi China. Many other companies have also left in the last couple years. Oregon will now be tied with Hawaii at 11% income tax, the highest in the US.

Moreover, they have added a tax now on gross revenue. It doesn’t make any difference if you are losing money and trying to survive. They want to skim the top. Wasn’t this the technique used by the Mafia?

If that’s not bad enough already, the City of Portland is talking about massive tax increases. If you’re a business in the city limits, the tax/business license fee has been 2.2%. They now want to increase it to 8%, a 400% increase. In that case, a business in the city limits of Portland will pay 11% income tax to the state and 8% income tax to the city: 19% city/state income tax, on top of the Federal 35% income tax.


2 Responses to “Oregon Tax Increase”

  1. At 12.6%, NY is till the winner in taxation and people are leaving there in droves also. http://online.wsj.com/article/SB123940286075109617.html

    The best thing anyone can do for Oregon is to leave the state and keep leaving until they learn (the hard way) that they’ll lose more than they gain.

  2. Chi-Town…this is a microcosm (or maybe bigger, a medium-cosm) of what’s happening to the nation as a whole…our bankrupt state & local govts are going to continue to enact policies that will further exacerbate the economic depression that we’re headed into…and of course, the federal govt is leading the way with their debt, and only paying lip service to deficit awareness with that very insignificant, powerless spending ‘freeze’ in 2011 Obomb-Squad is talking about. It ain’t a pretty future.

    Meanwhile…I think Murray takes the men’s tourney, and Fed looks old – very vulnerable vs. Tsonga in the semis.

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