All the election news last week was not as rosy as Massachusetts. Oregon voters approved two measures that invite businesses and high wage earners to move out of Oregon.
Voters approved an increase in the minimum excise tax paid by every business from $10 each year to $150, a 1500% increase. Excise tax rates were also increased for all gross revenue classes. They also raised the corporate income tax from 6.6% to 7.9% on earnings over $250,000.
If you are an Oregon resident who makes over $125,000, if you’re single, or $250,000 if you file jointly, your income tax rate just increased from 9% to 10.8%. If you earn over $250,000 and are single or a joint filer of over $500,000 your rate increased from 9% to 11%.
In other news from the Northwest of interest to those in North Carolina, the Washington State Democrats are telling Boeing to leave. They aren’t going to let little things like agreements that they already made stand in their way.
Boeing spokesman Bernard Choi said the bill “would take away our ability to run our business” and says the company has met all the detailed conditions in the 2003 tax agreement. – Q13
For those of you from Oregon and Washington reading this, Texas is one of 5 states with no income tax.
Real Estate professionals in Idaho, Texas or elsewhere where the disenfranchised Oregon and Washington achievers might move may find the Northwest a productive place to look, as well as California, for buyers of high end homes. Personally, I’ve lived in Texas before and don’t rule it out in the future.
Phil Hodgen says:
Charles Tiebout and his theory of the Invisible Foot. Oregon is the latest to play the game of “I taxed them, where did they go?”
http://en.wikipedia.org/wiki/Tiebout_model
January 28, 2010 — 2:30 pm
Brian Brady says:
Texas may very well become the modern day version of Galt’s Gulch.
January 28, 2010 — 4:17 pm
Al Lorenz says:
@Brian Texas, or depending on the Feds, Australia or I haven’t given up on buying Iceland yet. Chile is even showing promise…
January 28, 2010 — 4:37 pm
Arn Cenedella says:
Al
you are so right!
most (stupid) people are for tax increases for EVERYBODY and ANYBODY that makes $1 more than they do.
somehow they feel this is just!
why not? let’s take money from everybody but me.
the insatiable demand for money by our government agencies driven by public employee unions has started to and will contine to bankrupt local county state and federal governments.
time for folks to wake up!
the public employee unions are killing the goose that lays the golden egg.
Arn
January 28, 2010 — 6:32 pm
Robet Kerr says:
Don’t keep us in suspense … when are you moving from Oregon, Al?
January 28, 2010 — 9:11 pm
Jessica Horton says:
“Personally, I’ve lived in Texas before and don’t rule it out in the future.”
It is my understanding that my brokers license won’t transfer over to Texas, but I don’t even have to have a license to own a real estate company there.
Think I’ll print some t-shirts:
“Houston, we DON’T have a problem…”
January 28, 2010 — 9:13 pm
Jeff Brown says:
From time to time I’m contacted by Oregonistas. They’re astounded when told I’ve had a fence around that state since forever. The tree huggers might soon learn in real time the lesson Grandma was trying to impart when she cautioned them to beware what they wish for.
I’m reminded of what the ultra libs in Atlas Shrugged said every time one of the ‘producers’ asked how they were supposed to stay in business with the higher taxes and onerous new laws. “You’ll think of something — you always do.”
What they never imagined is that sooner or later that ‘something’ is to get the hell outa Dodge. Tick tock Oregon.
January 29, 2010 — 9:49 am
Al Lorenz says:
@Robert I don’t live in Oregon. I live in the People’s Republic of Washington. Washington has a split personality, more conservative in the east and liberal around Seattle. The Seattle area is more populace, so we’re not far behind Oregon. Jeff, it has occurred to me that the time to move might not be far in the future. It’s a shame.
January 29, 2010 — 9:56 am
Jeremy says:
I do live in Oregon, and I’m unfortunately not all shocked to see the electorate continue to defy common sense. The attitude of many (not all) is that business and high wage earners only serve purpose as the bank roll for our HUGE state gov’t. I told my wife early this year when the petition started that if this went down we were moving to another state. Washington is awesome but run by idiots. Idaho is looking good however… Texas is also good from a policy stand point but not enough trees.
January 29, 2010 — 2:43 pm
Benjamin Ficker says:
From an opportunists stand point, companies leaving Oregon means more people needing to sell, means more business if you like short sales. From a native Oregon’s stand point, stupid decision.
January 29, 2010 — 8:06 pm
Thomas Johnson says:
Texas is also good from a policy stand point but not enough trees.
@Jeremy I live 60 miles southwest of Houston in the shade of 5 150+ year old pecan trees. Each has a 5-6 ft diameter at the ground. They are about 150 ft tall. They shed 18″ 200 lb branches from 35′ up. I will defer if you live under some of those giant sequoia pine trees, otherwise, come on down.
Also: hit up the area north of I10, east of I45 on google earth before you complain about a lack of trees in Texas. It’s called the Piney Woods 😉 The real estate there conveys by the board foot of timber.
January 29, 2010 — 8:47 pm
Robert Kerr says:
@Al: Whoops, bad assumption.
I’m all for voting with your feet, but the fact is that Oregon is right about in the middle of tax burdens by state. CNN ranked it 26/50 last year. So, really, I think the outrage is a little overdone.
To anyone seriously thinking about Texas, I suspect they haven’t spent much time there yet, outside of the nicer cities like Austin. I have. It’s a cultural desert, but that’s just me.
Anyway, the freedom to just pick up and move to another state is one of the basic rights that makes this country great … and Delta is ready when you are.
January 30, 2010 — 8:35 pm
Lee Webber says:
I’ve lived in Southern Oregon for over 70 years. I’ve worked for the State Government here and I’ve also owned my own business for 31 years. You can no longer own a business and make a living in Oregon without first buying a license or licenses and after you do that you must buy permits and pay various fees to continue working at your business/trade. I loved my work and would not have retired, but the hassle got to be too much. I wish something would happen to clean out our state government so we could start over, but I know it is only going to get worse. The liberals who live in the northern part of the state are too ignorant to understand that corporations and small businesses are the ones who provide the jobs. The state doesn’t collect taxes from people that don’t have a job. Kind of like, you can’t tax the cigarettes of those who have quit smoking. These are the same people that think a beef steak is made at the grocery store, and don’t know that an animal must be slaughtered to make that same steak. Texas looks better everyday.
January 31, 2010 — 11:07 am