Economic Opportunity Institute: Oregon and Washington: Different Tax Codes and Very Different Ballot Fights about Taxes this November

First, some background. The Institute on Taxation and Economic Policy’s definitive report on state tax systems lists Oregon as #42 – within the top ten – of least regressive tax codes in the country (D.C. and Minnesota are #51 and #50, respectively). In Oregon, the lowest 20% of households by income pay 12 percent of their income in state and local taxes, while the top 1% pay 10.4 percent. What contributes to this relatively fair system is that Oregon’s tax code does not have a sales tax and does have: 

• a state income tax that is progressive, meaning there are higher tax rates for higher incomes 
• an estate tax and  
• several refundable tax credits (such as a Child Tax Credit).  

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