Legislative Revenue Office releases report on IP 28
Yesterday, Oregon’s nonpartisan Legislative Revenue Office (LRO) released a report on Initiative Proposal 28 (IP 28).Yesterday, Oregon’s nonpartisan Legislative Revenue Office (LRO) released a report on Initiative Proposal 28 (IP 28). A few initial details stand out:
- The measure would cost Oregonians more than $6 billion per biennium. It was previously estimated that IP 28 would generate about $5 billion. Today’s report estimates the measure would increase taxes in Oregon by more than $6 billion per biennium, by far the largest tax increase in Oregon history.
- The impact on the Oregon economy would be staggering. The report estimates that more than 38,000 private sector jobs would be lost as a result of this measure. The report states, “Our economic simulation shows that if IP 28 becomes law it will dampen income, employment and population growth over the next 5 years.”
- The report confirms that IP28 would especially hurt lower income Oregonians. The LRO report confirms that most of money raised by IP 28, if passed, would come out of the pockets of Oregon consumers, as well as Oregon small and medium-sized businesses, in the form of higher prices for almost everything we buy. “The impact of IP 28 on consumer prices means that the marginal impact of the tax will be regressive.” According to the report, Oregonians hit hardest by the tax would be those earning less than $21,000 a year.