SALEM, Ore. (AP) – State economists say that federal tax reform allowed Oregon to take in historic amounts of revenue.
The state’s May economic forecast released Wednesday predicts Oregon will take in $870 million more than what was predicted just three months ago. Some of that revenue will have to be returned to the taxpayers under a law unique to Oregon.
Mark McMullen is a state economist with the Office of Economic Analysis. He called the extra revenue a “truly seismic event.”
Tax changes on the federal level allowed the state to collect far more in income taxes. But the good times aren’t likely to last.
McMullen says growth has been slowing and that the state could enter a recession as Baby Boomers continue to exit the workforce.