Our view: Oregon is above average in tax burden
Published 5:00 am Wednesday, November 9, 2022
Oregon is above average in so many good ways. We’d say natural beauty per mile is one.
One of the less good ways Oregon is above average is in the business tax burden.
That is according to an Oregon business group, Oregon Business & Industry. And it’s pretty much what you would expect a business group to say. But if you look at the research of the Oregon Legislative Revenue Office, there is definitely something to it.
The report from Oregon Business & Industry is based on work by the national accounting firm Ernst & Young. It says:
Oregon’s effective business tax rate is 3% of the gross state product. That’s above the national average, which was 2.6% in fiscal year 2021.
Add together the state and local total effective tax rate and Oregon’s rate is at 5.4%. That’s above the U.S. average of 5%. It puts Oregon as the state with the 21st highest tax burden by state.
Now look at what the state’s Legislative Revenue Office says.
The office does a regular report on state revenues to see how Oregon compares and how it is changing.
The 2022 report uses 2019 data.
The Legislative Revenue Office has looked at taxes with more of a people focus than a business focus. “Over the most recent years, the tax burden has been close to or just above the middle of the states, edging its way back into the top half,” the 2022 report says.
Maybe the best number to pick is Oregon’s taxes in dollars per person. That was $5,388, putting Oregon in 21st place by state.
Oregon is also relatively high in government charges for state services, sixth in the nation at $2,449 per person.
Like we said, Oregon is above average.
Of course, if you want schools, if you want police protection, if you want fire protection, if you want clean drinking water and clean air, if you want waste disposed of properly, if you want government programs to help the poor, if you want roads and bridges, and if you want so many of the other things government provides, government needs revenue to do it.
And taxes provide that revenue. We understand that paying taxes isn’t a pleasant duty, but it eases the sting somewhat if those taxes go to pay for programs that provide essential services and are efficiently run.
States are also different. Comparing across states is not completely fair. There are going to be different needs for government services depending on the situation of the different states.
But there is always reason to look at state performance with tax dollars. State audits should be expanded. Deschutes County government has had a great program for self-auditing what it does. Why don’t more local governments have that?
And there is always reason to, at least, consider how necessary new or existing programs, regulations or taxes are.
Among the many things to consider this election is this question: Which candidates that you can vote for will be the most aggressive in looking for ways for government to improve, carefully weigh the benefits and the costs of any new tax or program and fight to ensure every tax dollar is well-spent?