The Oregon Business & Industry,
The OBI Research and Education Foundation has released a pair of reports this month that contain sobering information about Oregon’s declining economic competitiveness.
On Oct. 4, recognized as national Manufacturing Day, the foundation released an analysis of Oregon’s critical manufacturing sector. Prepared by ECOnorthwest, the report describes a number of worrisome trends that have developed since the publication of OBI’s previous manufacturing report in 2021.
Three years ago, ECOnorthwest found that Oregon’s manufacturing sector punched above its weight compared to other industry sectors in Oregon and to manufacturing in other states. Since then, unfortunately, the state’s manufacturing sector has weakened significantly relative to the rest of the country. From 2021-2023, for instance, Oregon’s manufacturing growth fell behind the national average during an economic upswing. And between June 2023 and June 2024, Oregon ranked only 45th nationally in manufacturing growth.
Read the manufacturing report here.
On Oct. 14, the foundation released a report that describes Oregon’s growing business tax burden. The report, conducted by consulting firm EY, found that Oregon’s business tax burden increased by 33% between 2019 and 2023 thanks largely to handful of large taxes, including the corporate income tax and Oregon’s paid family and medical leave program. The tax burden shouldered by businesses in and around Portland has increased even more dramatically as the result of several local, county and regional taxes.
Taxes also have become particularly high for people living in Portland. The city’s combined state and local tax rate for marginal income is the nation’s second highest, exceeded only by New York City’s. But New York City’s highest bracket for single filers kicks in at $25 million in income while Oregon’s kicks in at only $125,000.
Read the tax burden report here
Disclaimer: Articles featured on Oregon Report are the creation, responsibility and opinion of the authoring individual or organization which is featured at the top of every article.