Nevada Thanks Oregon

The Nevada Development Authority was thrilled this week when Oregon voters passed a pair of “Tax the Rich” initiatives. The two tax increases will raise the personal income tax rate to 11% on individuals making $125,000 or more ($250,000 if married filing jointly). The other tax increase is on businesses: the $10 minimum corporate income tax has been replaced with a $150 minimum tax, or 0.1% of gross revenues in excess of $500,000. The measure was sponsored by public employee unions.

How many businesses will want to expand in Oregon when they can move to Washington (with no individual income tax, though there is a business tax) or Nevada (with no personal or corporate income tax)? How many business owners will see these tax increases and lay off individuals? As the Tax Foundation said, you can’t tax the guy behind the tree. This tax increase will make Oregon less competitive and will cause the state to lose jobs in the middle of a recession.

The Chairman of Nike calls these tax increases a death spiral. He’s dead-on accurate.

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