Oregon Prosperity Council ReportJune 2026 · progressive-disclosure index

Chapter 2: Taxes

Section indexSource PDF pp. 16–20 ↗view raw markdown

Chapter 2: Taxes

Full Report > Chapter 2: Taxes -- 5 pages · pp. 16-20

Contents

Section PDF pages Description
[doc] Background & Problem Statement pp. 16-17 Oregon's tax structure creates competitive disadvantages for business and households. Middle-income earners face higher effective tax rates than in Washington and California, and complexity around layered local taxes burdens small and medium-sized businesses. Combined with housing affordability challenges, this erodes household disposable income and constrains the state's ability to fund services and long-term growth.
[doc] Summary of Stakeholder Feedback pp. 17-18 This section summarizes stakeholder feedback on Oregon's tax structure as a competitive barrier to business growth. Stakeholders cite combined state and local taxes, particularly the Corporate Activity Tax's broad supply-chain application, as discouraging investment for small and mid-sized firms. While emphasizing stable funding for education and services, they highlight Portland's acute problem: layered local income taxes drive out-migration ($3.5 billion in personal income losses over three years, including $730 million to Clark County, Washington), eroding economic competitiveness and revenue stability.
[doc] Shared Vision p. 18 Oregon's tax system should be stable, competitive, and predictable, funding public services while attracting investment and retaining talent to support business growth and long-term prosperity. The state must fix structural inefficiencies, align state and local tax policy, and build a broader revenue base. Reforms should rebuild public trust through greater transparency, accountability, simplicity, and demonstrated accountability for measurable outcomes.
[doc] Priority Recommendations pp. 18-20 Oregon's tax system is overly reliant on personal income tax. The Council recommends modernizing the R&D tax credit, reforming the estate and corporate activity taxes to support small businesses, and reconnecting QSBS to federal code for 2027. By 2029, a nonpartisan working group should develop comprehensive tax reform addressing income tax over-reliance, property tax regulation, and tax progressivity before federal SALT provisions expire.

See also