Oregon’s business tax climate is a major influencer of the economy and business environment. A favorable tax climate attracts new business and encourages economic activity down to the local level. In contrast, complex and high-tax environments deter investments and can lead to job losses.
So, where does Oregon stand?
The Tax Foundation creates the State Business Tax Climate Index, which is designed to show how well states structure their tax systems, releases a national comparison each year. In 2020, Oregon was ranked 8th in the nation. Today – just 4 years later – Oregon has dropped to 28th.
What happened? Since 2020, the legislature has enacted three major state-level tax changes to business taxes: the creation of the Corporate Activity Tax, the formation of the Oregon Paid Leave program funded in part by an employer payroll tax, and an increase in the Health Premium Assessment rate.
As a result, the tax burden on small businesses climbs while competitiveness slides, impacting everything from future investment, job creation, economic growth, even our quality of life.
Oregon’s economic backslide has been going on for far too long – and it needs to end.
Every decision in Salem matters. Our elected leaders need to focus on creating an environment that allows small business success to drive economic growth, but our current political environment won’t get us there. That’s why the Defend Small Business PAC is focused on electing small business champions. Small donations make a big difference in our ability to fight.
The Defend Small Business PAC (PAC 17474) - the PAC of the Oregon State Chamber of Commerce - helps protect, preserve and foster a political environment that will strengthen local businesses, their employees, their communities, and the private enterprise system.
