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Thoma touts sales tax

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High Five
Friday, May 22, 2009
One of Oregon's most prominent economists, Mark Thoma, believes it is time to wrestle with the most vexing tax question in the state.
Granted, a sales tax is politically unpopular, it can be unfair to
low-income households and there are worries it would make businesses less

But it does provide a needed stream of revenue that would be hard to match
through other tax increases or a broadening of the tax base, and the
politics may change as we face the difficult choices ahead. In addition, the
unfairness to low-income households can be reduced by exempting necessities and through compensating adjustments in other taxes and transfers. As for businesses, in that most other states have a sales tax of their own, it's hard to see how this causes a relative disadvantage to businesses in Oregon.

Read the full story at OregonLive.com.

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