Thoma touts sales tax

Thoma touts sales tax

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
competitive.

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.