Corporate tax collections also rose rapidly from 1993 to 1997, but a substantial part of the increased revenue was returned to corporations because of the surplus kicker law. Instead, Oregon relies on income and property taxes with highly visible large payments. As a result, some feel we are a high tax state. In reality in 1995-96, Oregonians paid less total taxes as a percentage of personal income than residents of many other states. Oregon's personal income tax burden, however, was second only to that of New York state residents.
Households do pay a large share of Oregon's taxes.
Ultimately all taxes are paid by individuals. Taxes that are initially paid by businesses are paid by owners as lower profits, workers as lower wages, or consumers as higher prices. It is not clear who finally pays Oregon's business taxes. We do not know how much is paid by Oregonians and how much by others. The legislature has appropriated funds to carry out a tax incidence study that should help sort who ultimately pays these taxes.