Oregon’s latest revenue forecast signals a bright economic outlook.
The current forecast calls for a personal income tax credit of $964 million and a business tax credit of $634 million.
The kicker tax credit kicks in when actual state revenue exceeds projected revenue by at least 2%. An amount then returned to taxpayers through a credit on their tax return.
Overall, General Fund gross income has doubled since the Great Recession and has taken a big step forward after the pandemic. Revenue growth continued, even as significant seed funding was paid out, according to the forecast summary released Wednesday morning (February 9) by the Oregon Department of Administrative Services.
“Today, households are teeming with money and growing wealth,” the summary reads. “Consumers have the ability and show the willingness to pay higher prices for goods and services. Companies can thus pass on increases in production costs, maintaining or even increasing profit margins.”
According to the summary, the biggest economic challenge remains the supply side of the economy.
“Supply chains are not broken but are overloaded due to high consumer demand. With labor running through everything, this is the biggest constraint to the economy today. “Labour supply is increasing. Oregon created a record number of jobs last year. The labor market is very tight and is expected to remain so,” the summary states, adding that the greatest risk for outlook remains persistently high inflation.
“Our latest state revenue projections provide an opportunity to make investments that spur a strong economic recovery and support working families, especially those hardest hit by the pandemic, wildfires and disasters. unprecedented challenges Oregonians have faced over the past two years,” Oregon Governor Kate Brown said.
“This is a pivotal time for Oregon. We have a windfall of one-time resources this year, and we have the opportunity to make big investments and do the big, bold work to help our hard-working families and businesses survive. thrive. We can’t miss this moment.
“While I’m excited to see the growth in wages for Oregonians, we still need to work to grow, develop and sustain our workforce. Now is the time to make critical investments in housing, childcare, workers, and businesses to help kick-start growth and keep our economy moving.
“And as we work to help Oregon families succeed, with these additional mid-term resources, we also have the opportunity to ensure that every Oregonian feels safe in their community. I will continue to work with lawmakers to ensure community safety, and I encourage members of both parties to present their ideas for evidence-based community violence prevention and response When we invest in and create opportunities for the people of Oregon and their families, we are creating safer and healthier communities.
Oregon Senate Republican Leader Tim Knopp (R-Bend) released the following statement regarding the revenue forecast.
“The Oregon Bureau of Economic Analysis reported that tax revenue from the state government is higher than expected. The state has more than $900 million in additional revenue. Meanwhile, the Rising crime rates are affecting Oregonians across the state, from shootings and robberies in the metropolitan area to illegal marijuana growth in southern Oregon.
“With surplus revenue, Senate Republicans are pushing to spend $60 million on Oregon State Police to help local law enforcement meet general public safety needs and combat crime. illegal cultivation of marijuana.The governor continues to double the release of criminals from prison, while several bills work through the legislature that will make our communities more dangerous.We must invest in public safety.
“Decades of forest mismanagement have left our overcrowded forests ready to explode with a single spark. We must act boldly to ensure Oregonians are protected from devastating wildfires. We must also be responsible with this money. We need to set aside more funds for the next downturn. We also need to seriously consider giving Oregonians tax relief. The government has buckets of money, but inflation is pinching their pockets. workers in Oregon. As Democrats introduce bills to raise taxes, Republicans are looking for ways to cut them.”
Oregon’s economic forecast provides information for planners and decision makers in state agencies and private organizations to use in their decision-making processes, according to a statement posted on the Department of Administrative Services website. Oregon.
Forecasting is the basis of much of state government budgeting. Forecast reports are published four times a year: March, June, September and December.