Despite recent tax increases being shot down historically, Salem is back with more tax proposals.
BREAKING NEWS: leaders in Salem are tone deaf. This isn’t surprising by any means, but this week, The Oregonian obtained documents listing 50 tax increase options to fix Oregon’s budget problems.
Apparently an 83% rejection of the last tax increase on the ballot after more than 90% of submitted testimony was in opposition to the plan and more than a quarter-million Oregonians signed a referendum petition to put the increase on the ballot was not a loud enough statement to Salem that Oregonians are overtaxed.
The tax increase proposals come as Salem faces a budget deficit heading into the 2027-2029 budget cycle. It’s being framed as a revenue crisis that the taxpayer’s wallet can fix, but it’s important to remember the entire problem is Salem’s from start to finish. Years of wasteful, inefficient, and ineffective government spending has created the budget problem time and time again.
The cycle is a simple and unsurprising one. Oregon has a budget “crisis.” Salem raises taxes. Oregon becomes less affordable and people and businesses leave. Salem spends to “fix” the affordability problem (usually making it worse). Tax revenue comes in lower because people and businesses left. Then the cycle repeats.
Tax increases should never be the first reaction of government to a budget problem. Instead, Salem should use priority-based budgeting, a concept laid out by the American Legislative Exchange Council (ALEC) in its State Budget Reform Toolkit, to fix Oregon’s budget deficit without gouging Oregonians. Essentially, this method requires Oregon’s leaders to figure out what the government’s priorities are and craft the budget accordingly. When programs are outside the scope of these priorities or fail to meet the standard for effectiveness, they are reworked or cut. It’s a pretty basic concept, but it is hard work.
Unfortunately, Oregonians will probably be faced with another round of tax increases. And every step of the way, Oregon Freedom Coalition will be right there to remind them that taxpayers need a break.
Join us in standing firm against tax increases: