Change tax structure to end Oregon’s economic mediocrity

(Soapboxes are guest opinions from our readers, and anyone is welcome to write one. State Rep. Scott Bruun, a Republican, represents District 37, which includes West Linn, Tualatin, Lake Oswego, Rivergrove, Stafford and Durham.)

By Rep. Scott Bruun

, Dec 13, 2007, Updated Oct 30, 2009 (3 Reader comments)

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The week before last marked the first meeting of the Revenue Restructuring Task Force, a new entity charged with studying our state’s current tax system, analyzing strengths and weaknesses, and submitting recommended policy changes to the 2009 Legislature.

The task force is the result of HB 2530, a bill which I sponsored because I believe Oregon has the worst tax structure in the nation. And I am increasingly convinced that if we do not have the courage to radically change our tax structure soon, Oregon will forever be consigned to economic mediocrity.

Our tax structure is crippling for the following reasons:

n It punishes work, savings and investment at some of the nation’s highest rates, therefore discouraging these endeavors.

n It provides little in support or encouragement to families with children — Oregon’s most valuable long-term asset.

n Its volatility and unpredictability place state government in a permanent, structural budget crisis.

First, income tax rates on our work – our jobs – are among the highest in the nation, and the Oregon tax rate on investment gains is the highest in the nation. If you believe taxes affect behavior, and that whatever activity we tax we get less of, then it’s easy to conclude that Oregon’s tax structure stifles incentives for productive work and investment.

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