The state struggles amidst a heavy tax and regulatory burden, which threatens job and economic growth.
Oregon Ranks as One of the Worst States for Small Business Policies
Oregon may rank No. 1 when it comes to its state sales tax burden (it has no state sales tax), but that’s where the fairytale both begins and ends.
The Small Business & Entrepreneurship Council’s 2016 Small Business Policy Index Ranking (SBPI) put the state 43rd for its public policy climate—a climate that drives or hinders economic growth and job creation.
The state performed particularly poorly on personal income tax, top individual capital gains, and individual dividends and interest tax rates, coming in 49th in the nation. On the regulatory front, it tipped the scale to make the top-10 worst states for its energy regulatory index, at 41st in the country.
Adding to the headache, Oregon, with one of the highest minimum wages in the nation already, is again facing the proposal of even higher wages. Paired with one of the worst tax burdens in the country, all this creates a heavy burden for small businesses in the state.
As the tax and regulatory burden increases, Oregon small businesses may be forced to leave for greener pastures. In fact, the SBPI shows that the bottom 25 states on the index have almost half the population growth of the top 25.