The Rich States, Poor States report sponsored by the state legislative group, The American Legislative Exchange Council (ALEC), has released their assigned grades for the best economic climate in the country. Utah took top spot for the 14th time with low and flat taxation, no unfunded pension problems, light regulation, and a right to work law makes Utah an ideal destination for business, capital and families.

The three authors of the report are CTUP co-founders Arthur Laffer and Stephen Moore and ALEC vice president Jonathan Williams.

Predictably, the big losers are the blue state meccas New York, Illinois, Vermont and California with Oregon slightly above at 43. Our neighbor to the north dropped to 34 like a rolling stone, Washington just adopted a first-ever capital gains tax.

Not to be surprised why Greater Idaho is so popular, it came in number 4 for economic outlook behind Arizona, North Carolina and Utah. The new rankings also reveal that, as proven by the 2020 Census data, Americans “vote with their feet” by moving from high-tax to low-tax states.

Oregon, on the other hand, has been on a decline since the report’s inception in 2008, when it ranked 35th for economic outlook. The next year the legislature sessions went to annual Oregon sessions, and the economic outlook hit bottom at 45th by 2015 and has stayed between 41 and 44 ever since. Despite Oregon’s economic outlook currently being at 43, the economic performance is ranked 13th. Why such a desperate outlook? So what changed to start the decline?

The personal income tax and marginal corporate income tax obligations stayed stable until 2019, but property tax took a big leap in 2009 and again in 2010 corresponding with a drop in the economic outlook. The culprit seems to be all the remaining tax burdens ranked at 42 costing $21.85 per $1,000 spent made up of fees, hidden sales tax and gas taxes that rose as economic outlook declined over the years.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

Influencing factors begin with Oregon ranking 50 in estate tax levied. The outlook ranked 49 for personal income tax progressivity valued at $38.28 per $1,000 and the marginal personal income tax rate at 14.69%. The marginal corporate income tax rate ranked 48 at 15.73%. The property tax reform ranks 35 at $31.57 per $1,000.

In the early 20th century, Oregon acquired a national reputation for its progressive program of direct participation by the electorate in the legislative system. This direct legislation came to be known as the "Oregon System." The progressive tradition of direct legislation and the state's fiscal conservatism are defining characteristics of the Oregon political system. Constitutional requirements along with voter insistence that tax measures be referred to them has meant the Legislative Assembly must work closely with the electorate to gain support for tax increases.

Even though the constitution restrains taxes, the economic ranking indicates this direct legislation hasn’t always been used wisely. Voters have not guarded their constitutional rights, and legislators have used loopholes to manipulate and impose hidden taxes that has depressed the state’s outlook.


--Donna Bleiler

Post Date: 2023-04-19 18:23:54

Last Update: 2023-04-19 17:24:09