For a long time now, the public policies put into play in Oregon- while well meaning- have diminished the economic prospects for businesses and citizens of the state. Today, Oregon ranks 2nd in the nation (behind Michigan) in unemployment. Prospects for the near term continue to decline.
To see just how Oregon compares economically to other states in terms of unemployment, state budget, and foeclosure rate, CNNMoney.com has published this useful statistical map.
Contributing to this debacle in Oregon are many basic philosophies that, when combined, have become extremely burdensome. Something has to change.
Let's take just one aspect of the problem: Taxation- Right now, the legislature is in session and virtually all efforts are being focused on ways to increase the tax burden on private enterprise and on individuals. For example, the tax on beer producers is being increased by something like 1900%. There goes the thriving micro brew industry in Oregon. Oregon immediately jumps to #1 in the nation for taxation of of this sort, a full 33% higher than the next highest, Alaska. In practical terms it means that the price of a single pint will increase by about $1.50. Will that effect employment in a positive way at restaurants? Other schemes under consideration include increasing taxes on health providers and insurers .. a special new tax on top of existing taxes. Actually, the list is far too lengthy to include here.
Here's a tax a real estate agent can relate to. The city of Portland has a special income tax (they call it a business license in an attempt to cleverly skirt the consitution). Here's how it works... Let's say your office is in Gresham, and you live there, too. You generate say $80,000 in GROSS commissions, of which just $5,000 was generated due to a sale you closed for a property located in Portland. Portland just passed a "business license fee" that confiscates 2.2% of your GROSS commissions, regardless of where the bulk of your business is performed or if you reside somewhere outside Portland, if your total annual commissions exceed $2,500. In other words, they claim you owe $1,760 "business license tax" on $5,000 of business just for daring to do business in Portland. Notice this is based on gross commission income, not reduced by business expenses. Imagine the ramification if every city started to impose this kind of "business license". I can see a situation where your taxes would exceed your total gross income! This is the new plan for "redistributing income". Take from those who produce and give to those who consume, after government slices off their "overhead".
In Oregon, the government class has become, in function, a form of Monarchy. I'm not sure what people are thinking when they vote for people who treat our small businesses so unfairly. Before much further damage can be inflicted, I hope we find leadership that puts' government back in the box. OUr future depends on it. Our unemployment rate is just one barometer of the problem.
Time for REAL change.
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