CSE Report: Tax Hike Would Cost Oregon Jobs and Hurt Economic Growth

A report released by Citizens for a Sound Economy (CSE) today, reveals that the $1.1 billion tax hike in Ballot Measure 30 would hurt Oregon businesses and families and would have a negative impact on jobs and the economy.

Click here to download the full report (.pdf)

The report entitled “Oregon’s Tax Hike: Unnecessary and a Bad Idea” shows how excessive spending, not lack of revenue, has caused the state’s budget woes and highlights real money-saving alternatives to tax increases.

The author of the report, CSE Policy Analyst Max Pappas, compares Oregon to other states in similar situations. The results were very clear: states that raised taxes to deal with deficits had slower, more difficult economic recovery.

Every Oregonian would feel the pain of this tax increase. Seniors would lose medical deductions, homeowners would face higher property taxes, and businesses of all sizes would have to choose between a higher tax bill and moving out of the state. Several major companies, including Louisiana-Pacific and Kuni Automotive Group, have already left the state or are in the process of doing so. Oregon already has the highest unemployment rate in the country and should be doing everything it can to keep jobs in the state. Pappas provides evidence and cites examples that tax increases raise unemployment.

Instead of proposing more harmful taxes, Oregon legislators should be looking for ways to cut spending. According to Pappas, Oregon’s spending has increased 151 percent in roughly ten years. The report highlights 10 ways to reduce spending (from Show Me the Money: Budget Cutting Strategies for Cash-Strapped States, William D. Eggers) to address budget problems in lieu of raising taxes.

“It became clear very early on that these tax increases were going to have nothing but detrimental effects on Oregon’s economy,” stated Pappas. “These taxes will hurt families, businesses, and seniors and will discourage desperately needed economic development and job creation in Oregon.”

Click here to download the full report (.pdf)