...The other piece of the economic puzzle is long-overdue tax relief for Oregon families. Today, someone making minimum wage in Oregon pays the exact same tax rate as someone earning $250,000 per year. That isn't right.Increasing the tax exemption so the working poor pay less is the right thing to do, and it will put our economy on a strong foundation to weather the coming storm.
Doubling the tax exemption will put $375 million back into Oregon's economy and create 19,951 jobs across the state, according to the Legislative Fiscal Office. Those jobs would cut our unemployment rate in half and create incentives for out-of-state companies to relocate to Oregon.
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Numbers only go so far proving why a change in the tax exemption is a good idea. Oregon families can make the argument far better. For a family of four earning $35,000 per year, doubling the tax exemption isn't abstract; it is an extra $400. That is money that can go toward winter coats for the kids or a high school activity fee.
Now, I am no economist, but I fail to see how cutting taxes on the working poor is going to create 20,000 jobs. Not that I'm against cutting taxes for the working poor mind you, although I actually doubt that a family of four earning a total of $35K actually pays $400 in income taxes, let alone would save $400 in income taxes, but maybe. Of course, the real problem with the Oregon income tax is that it is essentially flat. Now, I know that many of my brothers and sister in AFT-Oregon would disagree with me here, but I remain resolutely in favor of progressive taxation, so I would take a serious look at raising the top end of the Oregon tax rate at the same time I check out lowering the bottom end. Maybe there is a way to make this revue neutral.
Anyway, anybody got any idea how putting $400 in the hands of a family of four to spend on coats or high school activity fees (you gotta be fucking kidding me) creates 20,000 new jobs? Selling coats? Coaching wrestling? And how why would an out-of-state company want to relocate to Oregon because we lowered taxes on the working poor? Is there any way that makes sense? Help me out here.
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