Oregon economists expect a nearly $1 billion bonus tax credit for 2026 because the state will bring in a lot of money. However, lawmakers are telling people to be careful with their spending to deal with inflation and rising costs.
Oregon’s Projected $1 Billion Kicker Tax Credit for 2026 Boosted by Strong Revenue Performance
The Statesman Journal reports that Oregon economists now think the kicker tax credit will be almost $1 billion in 2026, which is a lot more than the $582 million they thought it would be. The state’s income has been strong, with more tax returns being filed and personal and business taxes doing better than expected.
Oregon’s economy seems solid, even though inflation is going down and the job market is slowing down. In 2023, the state’s personal income tax payments went up by 3%. By the end of the year, the Rainy Day Fund and the Education Stability Fund should have a lot of money in them.
Lawmakers Urge Cautious Spending and Avoidance of New Kicker Tax Credit Amid Rising Costs and Inflation
Lawmakers want people to be careful with their money because they are worried about inflation and prices going up. To keep Oregon’s economy strong and stable, they want us to focus on important services and avoid adding new taxes.
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