Oregon, Let's Grow Our Way Out Of This Mess
Editorial by Bill Perry, ORA Director of Government Relations

The tax increase, passed by the legislature and supported by the Governor, will most likely be on the ballot next February. Early polling indicates only 25% of Oregonians support the tax increase. Assume it does not pass. What alternative could Oregon's policymakers choose?

Job growth! Whether or not the tax passes, the fact that Oregon continues to lead the nation in unemployment is the problem that ought to be fixed.

Oregon will raise its minimum wage again this January to $7.05. Last November, Oregon's unemployment rate was at 6.7 percent, whereas this year it is at 7.6 percent. This is not rocket science. It's simple economics.

Oregon is an income tax based state. As long and unemployment is high there will continue to be budget issues. Oregon's leaders need to encourage large, labor-intensive companies to move to Oregon. The economy may improve with the stock market. However, if we do not create jobs, the budget issues will not improve and will continue.

Oregon needs to move away from raising taxes on a shrinking tax base and find ways to increase the tax base by creating jobs. Cutting costs on investment and creating job opportunities would accomplish this task. To get manufacturing companies and labor-intensive industries to move Oregon, we need to cut the capitol gains rate and remove the indexing with minimum wage.

Indexing of the minimum wage was sold to Oregonians as a way to help Oregon's high hunger rate. As a result of the last two labor union ballot measures raising the minimum wage, hunger and unemployment rates have risen. Oregon has the third highest minimum wage in the country and leads the nation in both hunger and unemployment.

Our current policy is obviously not solving these problems, but instead seems to be exacerbating the problem. It is time to take Oregon in a new direction, encourage job growth, and alleviate budget problems by stimulating economic recovery. We need to get more people employed who are contributing to the tax base, resulting in fewer people relying on government services.

The tax passing or falling in February will do nothing to solve Oregon's fundamental budget issue of unemployment. Too many of our citizens are looking for work. Now is time to find ways to create jobs, encourage business development, and work our way toward prosperity.

->Send an email to Bill Perry at bill@ora.org.