jld Posted January 27, 2010 Share Posted January 27, 2010 How do you think they'll help or hurt your state? Do you think they will be adopted by other states, too? Quote Link to comment Share on other sites More sharing options...
Bev in B'ville Posted January 27, 2010 Share Posted January 27, 2010 in fact, I live completely on the other side of the continent. I will add my $.02 though. I can pretty much guarantee that the powers that be in my state are sending representatives to Oregon very soon to persuade the businesses there to relocate to our state. Our state offers all kinds of tax cuts/benefits to businesses that relocate because they bring jobs to the state when they relocate (my state has done this numerous times in the past). I'm willing to bet our state won't be the only one doing so. Oregon can raise the taxes on businesses all they want, but the businesses have the choice of moving (perhaps not all of them, but many), and have no doubt, many of them will move, especially in this economy. The so called "wealthy" also being taxed? Well, they're usually the ones that own the businesses, too, so they'll be moving as well. In the past year a Chinese manufacturer began building a massive manufacturing plant here, because with the tax cuts/benefits my state offered its actually cheaper for them to hire local people to build the parts here and ship them nationally than it is for them to import the product. Shocking, I know (especially with what they pay their workers in China), but this is just one example of our state luring businesses here. Bottom line: I think Oregon made a huge mistake. The old expression "cutting off your nose to spite your face" comes to mind. Quote Link to comment Share on other sites More sharing options...
Jane in NC Posted January 27, 2010 Share Posted January 27, 2010 For more information on the story mentioned by the OP, here is an article from the New York Times. Truly, I know little about the nuts and bolts of the Oregon state budget, but from the article it sounds as those the quirkiness of the so-called "kicker law" contributed to their financial problem. Bev, you mention state incentives for relocation. Many states and communities are finding those incentives to be less than effective. A corporation is encouraged to build a facility and then walks after its tax break ends--leaving the community to pay for the infrastructure it required. Dell in NC comes to mind. Quote Link to comment Share on other sites More sharing options...
talexand Posted January 27, 2010 Share Posted January 27, 2010 Wow, that passed? I voted for it but I didn't even check this morning because I didn't think it had a chance. I got my vote in late and I have never received so many phone calls to get out and vote. We vote by mail so there is a stretch of time to get it turned in. People really felt strongly about this one on both sides. Next time I'll vote early to keep the phone from ringing off the hook. Because this passed our school district should be able to put back the 4 days of school that they cut this year. Given that Oregon already has one of the shortest school years in the country, these days are pretty significant. Quote Link to comment Share on other sites More sharing options...
RegGuheert Posted January 27, 2010 Share Posted January 27, 2010 I think they are going to kill what few businesses we have left. Here is some evidence that you are correct. Quote Link to comment Share on other sites More sharing options...
Heidi @ Mt Hope Posted January 27, 2010 Share Posted January 27, 2010 My cousin will now be moving his business out of state because the new taxes are going to devastate him. Quote Link to comment Share on other sites More sharing options...
babysparkler Posted January 27, 2010 Share Posted January 27, 2010 Wow, that passed? I voted for it but I didn't even check this morning because I didn't think it had a chance. I'd love to know why you voted for it... I'm out of the loop on what is happening in Oregon and just heard about it right now, but I would love to hear what a local thinks :) Quote Link to comment Share on other sites More sharing options...
TravelingChris Posted January 27, 2010 Share Posted January 27, 2010 I was reading a census report on where people are moving from and where they are moving to. It isn't the weather climate that is causing moves. It is the tax climate. There have been very significant trends for businesses and individual to move to lower tax areas. Quote Link to comment Share on other sites More sharing options...
Alenee Posted January 27, 2010 Share Posted January 27, 2010 I'm not an Oregonian, we live just north into Washington but we have a vested interest because dh's new job is in OR. We have to pay OR's income tax. This law was enacted by people who just weren't thinking about the true consequences. The bigger businesses will weather the storm by passing the tax back to the people in the form of higher prices but the small businesses will close which will only add to the already enormous number of unemployed people in OR. And for those who decided it's time to move their businesses, we'll be waiting here in WA with open arms! Quote Link to comment Share on other sites More sharing options...
Haiku Posted January 27, 2010 Share Posted January 27, 2010 I was reading a census report on where people are moving from and where they are moving to. It isn't the weather climate that is causing moves. It is the tax climate. There have been very significant trends for businesses and individual to move to lower tax areas. We really wanted to move to Pittsburgh to be near family and outstanding medical facilities, be part of a larger homeschooling community, and take advantage of what a larger city would offer (oh, and to be near the Steelers :D ). We didn't move because the taxes in Allegheny County are OUTRAGEOUS. Tara Quote Link to comment Share on other sites More sharing options...
Vida Winter Posted January 27, 2010 Share Posted January 27, 2010 It was the worst thing they could have done to a state with such high unemployment. But oh so easy for people to vote for a tax that they didn't have to (directly) pay. But pay they will, only they don't know it yet. Schools are always put up on the altar as the sacrifice if the state doesn't receive more tax dollars. However they refuse to cut spending in other areas. I don't believe for one minute that this money will go to the schools. It was more of a threat - pay this tax or we'll cut school services even more than we have already. On the surface this won't do a lot to most people. But couple it with a rise in gas prices and inflation (inevitable, in my opinion) and you watch this state crumble. Oh just for the record my family will be affected by the tax because we have a business. And yes, the tax is retroactive, going back a full year. And yes, Idaho is looking mighty good. Quote Link to comment Share on other sites More sharing options...
HollyinNNV Posted January 27, 2010 Share Posted January 27, 2010 It was the worst thing they could have done to a state with such high unemployment. But oh so easy for people to vote for a tax that they didn't have to (directly) pay. But pay they will, only they don't know it yet. Schools are always put up on the altar as the sacrifice if the state doesn't receive more tax dollars. However they refuse to cut spending in other areas. I don't believe for one minute that this money will go to the schools. It was more of a threat - pay this tax or we'll cut school services even more than we have already. On the surface this won't do a lot to most people. But couple it with a rise in gas prices and inflation (inevitable, in my opinion) and you watch this state crumble. Oh just for the record my family will be affected by the tax because we have a business. And yes, the tax is retroactive, going back a full year. And yes, Idaho is looking mighty good. Check out Nevada-no income tax. We welcome max-taxed businesses from CA all the time. Oregonians are welcome, too. Holly Quote Link to comment Share on other sites More sharing options...
Vida Winter Posted January 27, 2010 Share Posted January 27, 2010 Check out Nevada-no income tax. We welcome max-taxed businesses from CA all the time. Oregonians are welcome, too.Holly Thanks, Holly! It will be interesting to see how many businesses move south. Quote Link to comment Share on other sites More sharing options...
babysparkler Posted January 27, 2010 Share Posted January 27, 2010 And yes, the tax is retroactive, going back a full year. :eek: Wow. When I owned a small business, I knew what my expenses would be before each year began... and budgeted accordingly. To go back and charge retroactive taxes seems a bit unfair... and could cause a big hit to the smallest of businesses. Had they known ahead of time, they could have planned accordingly (raised prices to compensate), but now they will have to eat the cost. That is just wrong. Quote Link to comment Share on other sites More sharing options...
RegGuheert Posted January 27, 2010 Share Posted January 27, 2010 And according to the link I provided, they are taxing revenues, not profits. Crazy! Quote Link to comment Share on other sites More sharing options...
HollyinNNV Posted January 27, 2010 Share Posted January 27, 2010 And it doesn't even rain there 9 months of the year... True. But, we get a fair amount of snow/ice in Reno. Here's a fairly balanced article about businesses moving from CA to NV. http://www.edawn.org/docs/top-business-headlines/2008-09-02.pdf Quote Link to comment Share on other sites More sharing options...
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