Report Reveals That Removal of Tax Encourages Revenue, Job Growth
WASHINGTON, D.C. – The American Family Business Foundation (AFBF) yesterday released a dynamic report on the economic impact of repealing Oregon’s estate tax. Following the release, Dick Patten, President of the American Family Business Foundation, stated:
“There’s a new fairness movement arising across America. After Ohio’s estate tax repeal and recent actions by Indiana’s legislature to repeal their inheritance tax, Oregon is the next State aiming to give family businesses a fair shake at growth by eliminating its death tax. We’re proud to release this critical report that highlights the benefits of eliminating a tax that on hampers economic growth and public revenue for Oregon.”
The report, Oregon’s Death Tax: An Impediment to Economic Growth, In-Migration, and Public Revenue, complied by Dr. Eric Fruits, an economics expert at Portland State University, and Dr. Randall J. Pozdena, a Portland-based economic consultant, measures the impact of eliminating Oregon’s estate tax on the State’s economy through an analysis of employment growth, income growth, and migration patterns. The report presents the impact of an elimination of Oregon’s estate tax under two scenarios: (1) the elimination of the estate tax in its entirety in 2013 and (2) a phased elimination of the tax over a 3-year period beginning in 2013. In sum, the report reveals that by 2017, a full repeal of Oregon’s estate tax will lead to:
- increased Oregon employment by 44,500 new jobs.
- increased personal income of Oregon’s residents by $2.4 billion.
- increased Oregon income tax collections exceeding the loss of estate tax revenue.
More specifically, the repeal increases Oregon’s tax collections by:
- increasing the net number of returns filed by 3.6 to 4.1 percent.
- increasing the associated Adjusted Gross Income by 2.4 to 4.1 percent.
- increasing the taxpayer base (measured by exemptions filed) from 3.8 to 4.3 percent.
Overall, the report presented by AFBF reveals that Oregon’s economy is strengthened by estate tax repeal. The elimination of the tax provides more incentives for existing Oregonians to save and invest more in their local economy, which creates jobs, bolsters personal income, and supports greater revenues for public services. The report also highlights the fact that removal of the tax will also encourage Oregonians to stay in the State.
AFBF is the lead organization in Washington, D.C. that conducts studies, research and analysis to educate the public about the implications of public policy for family-owned businesses and farms.
Contact for AFBF: Charles Chamberlayne, 202-969-2444 ext. 505