On Thursday, September 5, the Portland Metro Chamber testified before the Multnomah County Commission in support of delaying the scheduled 0.8% tax increase for one year, taking effect in 2027. Voters approved the initiative in 2020, and set a 1.5% tax rate on single tax filers with income over $125,000 or joint filers making more than $200,000 per year to fund universal access to preschool across the county.
The Chamber outlined several factors to support delaying the tax increase:
- The Portland region currently has the second highest combined tax rate in the country, only behind New York City and this has made Portland less competitive and exasperated our already high cost of living.
- Multnomah County has been losing population, in particular those high wage earners that are largely paying this tax. New economic data presented by ECOnorthwest demonstrates that tax avoidance is a primary driver for those leaving the county.
- Based on these current factors, the Chamber supports adjusting the income threshold by indexing this tax to inflation to prevent strain on families with less purchasing power over time.
Jay Clark, Public Affairs Director for the Chamber stated, “The Chamber supports delaying this tax increase and believes that this stance is inline with the Governors’ three-year moratorium on new taxes in our region while also addressing out migration and helping keep Portland competitive as a region.”
Related media articles
- MultCo Board of Commissioners delay Preschool for All tax hike, KOIN
- Multnomah County considers delaying tax hike, adjusting income threshold for Preschool for All, Oregonian
- Multnomah County says it needs to create 3,995 new preschool slots to reach universal goal, Willamette Week