Measures 66 & 67 Create Jobs … in Vancouver

It has started already. The tax measures approved by Oregon voters on January 26, 2010, Ballot Measures 66 & 67, are beginning to create jobs in other states. More Oregon jobs will no doubt be lost.

In the week since Measures 66 & 67 passed, Oregon employers have become a hot commodity. Nevada, for example, has published a handout comparing the cost of doing business in Oregon and Nevada. No surprise, it costs less to do business in Nevada. The mayor of Chicago publicly announced last week that they will be working to lure Oregon businesses to the Windy City.

With no corporate income tax, no personal income tax and no capital gains tax, Washington State may gain the most from Oregon’s tax decision. As one long time Eugene business owner told me, moving to Vancouver is the quickest way he can add 12% to his bottom line. He intends to complete his move by the middle of the summer.

Accountants report that businesses of all kinds and all sizes are asking them to analyze the tax savings that would result from moving the business to another state.

Oregon now has the second highest income tax in the country. Only New York is higher. That leaves a lot of lower tax states for Oregon businesses to consider.

Manufacturers originally lured to Oregon by low energy costs may be among the most likely to leave the state. Low energy rates are long gone. Many now compete with firms across the country and around the world. If they are the high cost producer, they will be out of business.

It is mentioned in private conversations that several prominent, long-time Oregon manufacturers may soon relocate. The only question is whether they move to another state or move to a lower cost country.

The Lieutenant Governor of South Dakota told me they are actively recruiting Oregon business owners with prior ties to their state to return to South Dakota. They have a list of prospects and have been cultivating that list for quite some time. He was shocked that the state of Oregon was not doing anything to try to hang on to these businesses.

It is important to keep track of Oregon jobs lost. If you or a business you know are questioning whether you will continue doing business in Oregon, please let me know.  Similarly, if you have had to cut jobs as a result of Oregon taxes or other Oregon laws, please let me know that too. Your stories will be added to a statewide collection. If Oregon is to save jobs and restore those jobs that have been lost, Oregon policy makers need to know what works and what does not.

Comments

[Gail]

Alan,
This is a great legalbrief......Oregon needs to do something to keep business! Otherwise there will be a mass exodus..and you can't really blame them.

[scott]

with the economy already hitting us hard, at this time the tax increase has not dramatically hit us, but as the economy rebounds we will look at relocating.

[Michael]

We are appalled by the disingenuous campaign led by the pro 66 & 67 groups which purposely mislead thousands of Oregonians to believe that ALL corporations pay only $10 in taxes. These new taxes may erode profitability to a point that is unsustainable for our continued existence. As a small business working on a narrow margin we do not have the ability to move to another state. Our only option will then be: close our doors, put 30 people out of work and leave our customers stranded. What a shame!

[Tom]

Washington state's new tagline should be "Keep your Greenbacks, move to the Evergreen State"....