- Last year, voters in Oregon voted to raise taxes on the highest income earners in the state, giving Oregon the highest tax rates of any state in the nation. It hasn't worked out too well for Oregonians, according to the Wall Street Journal:
In 2009 the state legislature raised the tax rate to 10.8% on joint-filer income of between $250,000 and $500,000, and to 11% on income above $500,000. Only New York City’s rate is higher. Oregon’s liberal voters ratified the tax increase on individuals and another on businesses in January of this year, no doubt feeling good about their “shared sacrifice.”
Congratulations. Instead of $180 million collected last year from the new tax, the state received $130 million. The Eugene Register-Guard newspaper reports that after the tax was raised “income tax and other revenue collections began plunging so steeply that any gains from the two measures seemed trivial.”One reason revenues are so low is that about one-quarter of the rich tax filers seem to have gone missing. The state expected 38,000 Oregonians to pay the higher tax, but only 28,000 did.
Those with the means to do so will leave Illinois. Those companies able to will move out. Illinois has committed itself to an economic death spiral and the only questions are at what point will it crash and how bad will it be?
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