Like a Sales Tax on Steroids

CascadeNewLogoBy Steve Buckstein

Now that the massive Gross Receipts Tax measure IP 28 will be on Oregon’s November ballot, we likely will see many estimates of its impact on the state economy.

An economic research center at Portland State University just came out with its report on the measure, funded by the measure’s sponsor, union-backed Our Oregon.

Too bad that the sponsors picked a center headed by a respected former Oregon State economist who said publicly in March that their proposal would be “like a sales tax on steroids.”

Dr. Tom Potiowsky now chairs the PSU Economics Department and directs the Northwest Economic Research Center at the university. While the new PSU report doesn’t include the “sales tax on steroids” language that he personally used in March, it does confirm that such taxes “share many characteristics with sales taxes, and thus a greater burden on lower income households.”

The report also finds that because the tax will increase the cost of doing business in Oregon, it will destroy some 13,500 private sector jobs by 2027, while the added tax revenue will enable government employment to grow by 33,600 positions over the same period.

So, the tax will most hurt those least able to afford it, and will shift employment from the private to the public sector. Not bad for a sales tax on steroids.

Steve Buckstein is Founder and Senior Policy Analyst at Cascade Policy Institute, Oregon’s free market public policy research organization.

  • Contrary to some speculation, IP28 has not yet been assigned a Ballot Measure number by the Secretary of State. That should happen around August 5th.

    • guest

      PERS brownies offered on the left vs. private sector cinnamon rolls over toward what’s right.
      KISS: How high’s the water risen Momma!
      Answer: Blubba rub dub, “unfathomable – please change course before an Edmund Fitzgerald extincts our vessel over on sum Dem gawks.

  • Bob Clark

    We must save the world, again and again even if government is largely inept and corrupt at such efforts, simultaneously bleeding the middle class away in a heft of new tax burden (such as IP-28). Older folks tend to resist these efforts understanding save-the-world efforts are too infinite to be solved, and especially by bloated government bureaucracies with their own set of pecuniary financial interests.

    For those who cherish the pursuit of individual accomplishment, the political environment in the state, local, and national levels seem pretty discouraging relative to the last half of the 20th century. I am running out of the cheery serum called hope.

  • Dick Winningstad

    PERS is still going bankrupt and yet the only thing our Dem leaders can do is think up ways to spend the increased revenue if this passes. Why not fund the PERS shortfall first?

    • Dick, IP28 sponsors may not have wanted to emphasize funding the PERS $21 billion shortfall first because that might not buy enough votes from those hoping to spend billions of new tax dollars on their own projects.

      • barttels

        By law, PERS must be paid first, yes? There’s the anti campaign right there. Or a goodly chunk of it.

        • guest

          Write on and damn the Dem tax and spend credos. .

  • 你的博客确实好,三天不来受不了!

  • Marcel

    I don´t have any words for what is happening there right now. I know people work as a steuerberater hannover and they don´t even have a chance for a good living…