Measure 28 and Oregon’s Economy
Measure 28 is a temporary income tax increase that the Legislature referred to the voters as a way to avoid additional cuts to the state budget. Weighing further budget cuts to education, public safety, and programs for the poor and elderly against tax increases is a difficult proposition for many voters. Opponents argue that Measure 28 will interfere with Oregon’s economic recovery.
Analysis of Measure 28, however, shows that its failure would be worse for the economy:
- Failure of Measure 28 will drain over $1.5 billion from Oregon’s economy, compared to only $208 million if it succeeds.
- Budget cuts that will be implemented if Measure 28 fails will drain $419 million in federal matching funds from Oregon’s economy over the next two and one-half years.
- If Measure 28 succeeds, the increase in state taxes will be offset by Oregonians paying $129 million less in federal income taxes.