The Observation Deck

Earlier this year Oregonians passed a new tax on the “wealthy” in their state. This raises Oregon’s top tax rate to 11%, the second highest in the U.S.

http://www.katu.com/news/local/82760392.html

And, effective today, Oregon state public employees receive a 4.75% raise. They financed the campaign to pass the tax hike to the tune of $7 million campaign dollars.

It’s also instructive to note that Oregon’s U3 unemployment rate exceeds the national average. You can bet that it will continue to do so. What business in their right mind, small or large, would want to locate in Oregon? Nike Chairman Phil Knight has referred to the new tax legislation as Oregon’s Assisted Suicide Law II.

Portland wants to increase its tax on business income from 2.2% to 8%.

Oregon (like Ohio) also takes a piece of a business’s TOP line, regardless of whether that business is profitable. Sort of like what the mafia used to do.

Oregon is entering a death spiral, much like Illinois and California are already in. Instead of grappling with the expense side of the ledger, they have chosen to tax their residents to the max, and especially the ones who employ people, to the point where some are leaving, and nobody is relocating their businesses to Oregon.

Oregon instead should tackle its expense structure. Can it do so? I believe so, see….

http://www.oregonlive.com/politics/inde ... _gove.html

Short of tackling their budget issues, all states face this problem sooner or later. Wouldn’t it be great if Ohio really got out in front of this thing? Think of the businesses we could retain and attract.

(Two cities in California, one being San Francisco, have measures on the November ballot that would reign in public employee pension plans. How long will it take before folks learn that it's easier to change the state constitution than it is to squeeze blood from a turnip?)

a business that sells its goods well beyond the state border will generally be better off locating in a border state with Mexico, Georgia, Alabama, or overseas. Regardless of state taxes.

Capital and Communications and shipping are much easier to move than when fundamental economic theories became established.

The next political cat fight will be between the new aristocracy (government workers and their hangers on) and the rest of us.

It's a little disheartening to see State voters approve huge tax increases just to give raises to government workers.

Lakewood is faced with a huge increase in pension and wage payments. Where will the money come from?

small businesses in Oregon do business in Oregon. don't imagine a pizza shop or garage or tool and die shop or boneyard or carpenter or mason moving to washington.

maybe Nike will move. Nike is a multinational firm. not a small business. in the national scope, Nike is mostly just an advertisement firm. the manufacturing is in southeast asia and latin america. Nike is an american advertising firm.