Tag: Jakob Puckett

23 Million Reasons for Metro to Repeal Its Construction Excise Tax

By Jakob Puckett

How much do we have to tax something to make it affordable? You might think that’s counterintuitive, and you’d be right. But that’s exactly what the Portland-area Metro Council is doing with affordable housing through their Construction Excise Tax. So what is this tax? For every construction project valued at over $100,000, Metro taxes 0.12% of its value, with most of the revenue directed to fund grants to plan for affordable housing.

That number may not sound like much, but the Portland City Council also has a Construction Excise Tax, only it’s eight times higher than Metro’s, also for housing land-use planning. So two councils levy the same tax on the same people for the same purpose.

And the money raised rarely goes to constructing housing units. Metro recently approved 10 new grants; and while all of them fund more land-use planning exercises, none of them actually build new housing. This extra paperwork often leads to construction delays, creating an expensive, redundant mess for land developers.

And just how expensive has it been? Metro has renewed this tax twice, raising over $23 million for these projects, which has just made housing construction $23 million more expensive. And, in a city where every dollar put towards new housing counts, that’s 23 million reasons why Metro should repeal its Construction Excise Tax.

Jakob Puckett is a Research Associate at Cascade Policy Institute, Oregon’s free market public policy research organization.

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Supreme Court Janus Decision Upholds Public Employees’ First Amendment Rights

By Jakob Puckett

When’s the last time you went to a store, and the store forced you to buy something you didn’t want? That’s ridiculous, you might think. Sure, someone else might want it, but they can’t spend my money for me on something I’m not looking to buy.

For the past 40 years, this is how public sector unions had been operating, having the legal right to collect what are called “agency fees” (or union dues) for any employees they wish to bargain for, even if that person didn’t want to join the union.

But thanks to the recent Supreme Court decision in Janus v. AFSCME, workers now have the right to choose whether they want to pay union dues. Mark Janus successfully argued that since public sector unions operate by interacting with public officials, everything they do is inherently political, and forcing employees to be a part of it would violate their First Amendment rights of free speech and association.

Now, instead of involuntarily funding a union they don’t agree with, workers are finally empowered to make their own decisions with their own money for their own purposes.

Like the grocery store example, nothing in this ruling prevents unions from existing and continuing to offer their services. We’re just free to choose whether or not to purchase them.

Jakob Puckett is a Research Associate at Cascade Policy Institute, Oregon’s free market public policy research organization.

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