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Portlanders
want a stable, equitable tax system to
fully fund the services they value.
Most comments in this section involve
suggestions for how to re-align the tax
system to better reflect community members’
values. While disagreements abound over
specific measures and strategies, there
is general consensus that the tax system
should be equitable, stable and capable
of fully funding the services that matter
most to people. There is also agreement
among respondents that the City needs
to rethink its use of tax breaks and incentives.
While many acknowledge that part of the
problem is at the state and federal levels,
they nevertheless look to local government
to align its taxing and spending practices
with community members’ values. That being
said, feelings towards paying taxes range
widely, with some expressing a willingness
to pay higher taxes for higher-quality
services, others wanting the City to use
the money it has more effectively and
still others wanting lower taxes. Additional
areas of debate include whether or not
to implement a sales tax and whether the
current tax burden is too high, too low
or just right for individuals as well
as different types of businesses.
-
Portlanders support taxes to fund the
services they value.
-
The current tax system is not equitable.
- Tax breaks
should be used to promote the community’s
values.
- The tax
system must support high-quality public
education.
- Are taxes
too high, too low, or just right?
- Should Portland
adopt a sales tax?
- Portlanders
support taxes to fund the services
they value.
- While some individuals are
simply opposed to paying taxes,
most people who commented on
this topic support paying taxes
to adequately fund services
they believe to be necessary.
- However, many people state
that their willingness to pay
taxes hinges on how tax revenues
are used.
- Many Portlanders say they
are willing to pay the same
amount or more in taxes if the
following conditions can be
met:
- Tax revenues are spent
efficiently on
services and programs that
work;
- Tax dollars are used to
fund
people’s top priorities,
such as the maintenance
and improvement of public
infrastructure and the provision
of excellent public education;
- Tax revenues are used
to improve
the livability
of the city as a whole;
- Tax revenues are not used
on special projects with
limited appeal (these projects
should be funded by those
who want to see them happen,
not the general public);
and
- Tax revenues are not used
to help private interests
make more money or gain
competitive advantage (for
a more complete discussion
on how people would like
their tax dollars spent,
see Government:
Spending).
| “[I
value that] there has been
a willingness to experiment
with new methodologies of
governing, a willingness
to tax ourselves for important
community causes, and efforts
made to keep the conversation
going about what Portland
should be...” |
| "People
will pay for the public
works and services they
see and approve of. The
Water Bureau’s ‘Field Day’
for the public was one of
the best open windows into
an otherwise costly and
maligned bureau. Copy this
everywhere.” |
| "I
would like to see complete
transparency in where our
tax money is going—All tax
money including fees and
fines.” |
- Change the anti-tax
public sentiment by demonstrating
responsible use of public funds
and by educating the public.
- “Begin an add campaign to
educate the public on why paying
taxes can be a good thing by
showing them the benefits it
produces. Portland is great
because of all the public goods
it provides…”
- The
current tax system is not equitable.
- Portlanders want a fair
tax system, although
what this means varies depending
on people’s personal and political
beliefs.
- Many Portlanders believe that
the current tax systems benefits
wealthy individuals and corporate
businesses while overburdening
small businesses, lower to middle-
income individuals, childless
people and property owners.
- Some perspectives on the equity
of the current system include
the following:
- Individuals pay too much,
businesses pay too little;
- Small businesses pay too
much, big corporations pay
too little;
- Long-time residents of
gentrifying neighborhoods
pay too much (property taxes),
while higher-income residents
of condos and new development
pay too little;
- Drivers of automobiles
pay too much, cyclists pay
too little; and
- Residents of Vancouver
who work in Portland pay
too little, especially for
transportation services
and upgrades.
- Some people acknowledge that
the structural inequities in
the system are created at the
state and federal level; however
they still think Portland can
improve the equity of its tax
policies.
| "Less
taxes for low-income. If
we have less taxes we can
keep more of the money we
earn for living and would
reduce theft and some other
common crimes.” |
| "Higher
taxes for the corporate
businesses that have been
allowed for too long to
pollute our air, rivers,
and communities.” |
| "Require
housing developers to pay
for their need to expand
the utility infrastructure
– the taxpayer should not
have to support their desire
to develop and make more
dollars.” |
- “The city leadership
probably needs to form an alliance
with other State leaders on
an overall
tax reform agenda.”
- Institute a property-tax
freeze for the elderly
and for long-time residents
of gentrifying neighborhoods.
- Portlanders suggest lowering
certain taxes and raising
others to improve the overall
equity of the tax system.
Lower
taxes on:
- Small businesses;
- Lower and middle-income individuals;
and
- Property owners.
Increase taxes on:
- “Companies with an excess
of five million in revenues
per year;”
- Corporations;
- People who can afford to pay
them;
- Alcohol;
- Cigarettes;
- Marijuana (legalize and tax);
- Unhealthy products such as
candy, soda and high-fructose
corn syrup;
- Sports Utility Vehicles (SUVs);
- Cars entering the downtown
area;
- “Why not tax or license bicycles;
they eat up tax dollars?”
- “Find a way to tax the ‘live
in Washington but buy and work
in Portland’ people. They use
our roads but do not pay for
them.”
- Tax
breaks should be used to promote
the community’s values.
- Portlanders want tax breaks
used to narrow the gap between
the “haves” and “have nots”
and to promote broad social
goals such as sustainability
and equity.
- They want tax breaks to assist
organizations and companies
that improve livability for
the City as a whole, as opposed
to those that are purely trying
to profit.
- Portlanders do not support
the following types of tax breaks:
- Tax abatement for developers
of close-in, high-end housing;
- Tax breaks to lure large
companies to the area (many
people spoke out against
this); and
- Tax breaks to encourage
well-off residents to purchase
high-end housing such as
condos in the Pearl and
South Waterfront.
- Many Portlanders support
tax breaks for the following:
- To encourage businesses
to adopt sustainable practices,
including “cradle to cradle”
technology and renewable
energy;
- To enable longtime residents
of gentrifying neighborhoods
to keep their homes and
businesses;
- To assist small businesses;
- To encourage the creation
of more affordable housing;
- To encourage/reward the
use of mass transit and
environmentally-friendly
forms of transportation;
and
- To support artists (attract
them to Portland, help them
obtain affordable gallery,
work, or living space).
| "Our
future may not be best served
by tax incentives to attract
large companies, rather
it may be better served
by helping to grow new,
small, local companies that
promote employee ownership
or community ownership of
profitable operations that
allow wealth to accumulate
where none has existed before.” |
| “…Please
keep the city out of the
business of trying to pick
the next economic winners
(biotech, etc..) They city
can best support economic
growth by ensuring good
infrastructure, excellent
education systems, livable
neighborhoods, effective
energy policies, and reasonable
(and fair) taxation.” |
- Tax based on waste
not profit, so those
companies that profit while
reducing waste get a tax break.
- Give a tax break or credit
to stay-at-home
parents who provide
their own childcare.
- Use tax incentives to “encourage
Portlanders to participate in
local boards governing community,
water and land management.”
- “Tax
land not buildings,
in every 'center' especially
Gateway…”
- Provide financial incentives
for planting
trees.
- Allow people to write off
a TriMet pass on their tax returns
or provide another tax benefit
to using public transportation.
- Subsidize free
parking spots for Flex
Car to encourage more people
to use this service.
- The
tax system must support high-quality
public education.
- There is incredible support
for our public school system
(see Education:
pre-K-12 Schools).
- A large number of respondents
want Portland's public schools
fully funded, and a tax
system that ensures educational
excellence, small class sizes,
art and music classes, physical
education and numerous high-quality
after school programs (see Education:
Funding).
- Frustration is expressed over
repetitive, short term, and
seemingly ineffective funding
“fixes” such as the Multnomah
County I-Tax.
- People want elected officials
to develop stable, long-term
solutions to the recurrent funding
crises in the schools.
| “Improve
our schools! I will pay
more taxes for that.” |
- Raise
taxes to support education.
- Institute a Sales
Tax and have the proceeds
fund education.
- Re-prioritize
how tax funds are used, so low-priority
projects receive less funding
and schools receive more funding.
- Reduce
administrative expenses
in the schools and find other
ways to use current funds more
effectively.
Note:
There are major disagreements
around what is needed in order
for schools to be fully funded.
For a more complete discussion,
see Education:
Funding.
|
- Are
taxes too high, too low or just right?
Portlanders express a range of attitudes
and feeling towards paying taxes. Some
are glad to pay taxes, no questions
asked. Many of these Portlanders feel
that the current tax burden is too low,
citing funding crises in education,
a growing homeless population and aging
City infrastructure as proof that more
funds are needed to solve the community’s
problems.
| “[In
2030] we would have a highly educated
populace. As such, they would be
even more concerned about the quality
of their city. People would pull
together for the common good, seeing
taxes going for value returned.
The anti-tax thing drives me nuts.” |
A larger group of people understand
the importance of taxes, but feel their
dollars are wasted and/or misused. Complaints
range from inefficient government as
a result of duplicated services to government
spending on the wrong priorities. This
group of Portlanders feels that the
problem is not the tax level but how
tax money is spent (see Government:
Spending). They want to see the
government produce maximum benefit with
the dollars it already has before asking
the community for additional funds.
| “If
the money from taxes is spent wisely
and effectively, I don’t mind paying
more taxes.” |
Finally, there is a very small group
of respondents that is suspicious of
taxes and would prefer to pay less,
regardless of how well funds are used.
These individuals tend to feel that
taxes are already far too high and that
government is involved in many activities
that are unnecessary.
| “[In
2030] taxes are lower and individuals
take more responsibility for their
special interests.” |
- Should
Portland adopt a sales tax?
There is a great desire for a strong
and sustainable tax base, although
Portlanders disagree as to whether
this sustainable tax base should include
a sales tax. People who support a
sales tax believe that it could solve
many of our funding problems, from
recurrent funding shortages in schools
to our need for a more extensive public
transportation system. They also believe
that it would help the state “weather
the ups and downs of the economy,”
providing more stable, reliable funding
for programs.
Those who oppose a sales tax cite
the lack of such a tax as one of the
best things about Portland and the
entire state. They also tend to believe
that government could be doing a better
job with the money it already has,
spending dollars more efficiently
and focusing on the public’s priorities
(see Government:
Performance and Government:
Spending).
| “I
know this is a state issue, but
I'd like to see Portland push it:
a State Sales tax with an across-the-board
reduction in property taxes (with
exemptions for food and medical
care purchases).” |
| "[In
the future] we don’t rely on a sales
tax, but instead have learned how
to budget our tax dollars more effectively.” |
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