We commend the members of the Prosperity Council, its co-chairs, and the Governor for tackling a serious challenge — Oregon’s rapidly declining economic vitality.
The first step towards fixing our broken business ecosystems is to acknowledge that the problems that we have are self-created; and therefore, recognize our own agency in fixing them. We cannot blame the pandemic that is increasingly in the rearview, or a disconnected and often hostile federal administration for all our problems. Every state is challenged in the same way; yet other states have managed to create more jobs and more opportunities to grow businesses.
Our economic difficulties are as home grown as hazelnuts.
The state’s beating economic heart is the Portland region, and we have our own unique set of challenges to tackle. But we also need sound state policies to support the jobs center of Oregon.
The ten priority recommendations are a step in the right direction. The Council and Governor deserve full credit for advancing concepts that largely align with both the progressive values of our state, and the business community.
However, one issue looms large above all else, our nation-leading personal income tax rate. Recognizing that truth in the report and fixing our sights on broad based reform by 2029 is exactly the right thing to do. The changes to the federal tax code in HR1 that sunset the State and Local Tax Deductions (SALT) on December 31, of 2029 require us to completely reduce and reform our imbalanced system of revenue. If we fail to act ahead of this ‘SALT cliff’, we are simply planting flowers on our economic graves.
Conversely, following through on the council’s call for bi-partisan tax reform and the other priorities will put Portland and Oregon on a stable and competitive trajectory that will lead to a brighter economic future for Oregon, coupled with stable and predictable revenue for critical public services.
These priority recommendations by the Prosperity Council would bring Oregon well-established and stable best practices in public finance already in place in most other states.
With this first heavy lift behind us, it’s time to get to work and get this transformation done. We need timelines, assigned responsibilities, and a road map to enacting these reforms.
We are ready to stand side-by-side with the Governor, Senate, and House to support the work ahead.