Should Tax Reform in 2003 Be Revenue Neutral?
Population increases and inflation raise the cost to the state of conducting the business of government from year to year. Population growth leads to increased demands for services, from more children in schools and more seniors in failing health to increased demands for police, agricultural extension services, and small business development assistance. Inflation means that state government needs more money to provide the same level of services, just as individuals and businesses need more money to stay even from year to year. Costs associated with virtually everything Oregon undertakes rise each year, with some costs, such as health care, consistently rising faster than the general rate of inflation.