---
kind: index
source_pdf: oregon-prosperity-council-report-june-2026.pdf
fingerprint: 8ac9aef8ca1b
page_range: [16, 20]
breadcrumb: ["Full Report", "Chapter 2: Taxes"]
---

# Chapter 2: Taxes

*Full Report > Chapter 2: Taxes* -- 5 pages · [pp. 16-20](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=16)



## Contents

| Section | PDF pages | Description |
| --- | --- | --- |
| [doc] [Background & Problem Statement](./background-problem-statement.md) | [pp. 16-17](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=16) | 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](./summary-of-stakeholder-feedback.md) | [pp. 17-18](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=17) | 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](./shared-vision.md) | [p. 18](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=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](./priority-recommendations.md) | [pp. 18-20](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=18) | 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

- Parent: [Full Report](../INDEX.md)
- Source PDF: [oregon-prosperity-council-report-june-2026.pdf](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf) · open at [pp. 16-20](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=16)
- Raw extracted pages: [`.extracted/pages/`](../../../.extracted/pages)