Higher wages for workers and more income for businesses is driving up state tax collections, creating the prospect for even more state government spending and then credits in two years for those paying income taxes, state economists announced Wednesday.
The economists described a robust Oregon economy that they now project will put $1.5 billion more into the state treasury in the current two-year budget cycle than the $23 billion that had been budgeted.
Most of the extra money comes from $763 million more in personal income taxes and $633 million more in corporate income taxes. The higher collections aren’t due to increased tax rates but people and businesses making more taxable income than expected when legislators set the state’s budget for the 2021-2023 cycle.
The report also noted one other source of extra state revenue: Estate taxes. The forecast said those are expected to be . . .
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