Tag: tax


Portland’s Temporary Gas Tax Should Stay Just That

By Rachel Dawson

Portland’s temporary gas tax should stay just that: temporary.

Portland voters approved the 10 cent per gallon gas tax three years ago to fund a road repair and traffic safety program. Since its implementation, the program has failed to live up to all expectations.

Gasoline-using vehicles pay for 100% of the tax but only receive a little over half the benefits. Only 56% of tax revenues go to street maintenance projects, while 44% is spent on pedestrian and bicycle safety.

The program is also poorly managed. A 2019 audit on the tax found that program oversight has been ineffective, many projects have not been completed on time, revenue goals have not been met, and completed projects have cost $900,000 more than what was told to voters.

City staff admitted that project schedules were not realistic and took longer to begin “because the scopes of individual projects were not yet well-defined.” This lackadaisical approach to project planning would never fly in the private sector, so why is the city getting a pass?

Portland commissioner Chloe Eudaly will send the expiring gas tax back to voters in May 2020. The region needs better roads, not another poorly managed tax. For these reasons, Portlanders should vote “no” on extending the gas tax in 2020.

Rachel Dawson is a Policy Analyst at Cascade Policy Institute, Oregon’s free market public policy research organization.

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Taxpayers Should Demand Accountability Before Passing (Another) Metro Bond Measure

By Miranda Bonifield

Last November, Metro gained approval from Portland voters to borrow $652 million for low-income public housing projects. In 2020, they’ll ask for $850 million for a light rail project.

This year, the regional government is proposing a $475 million bond measure to fund parks and nature projects. While Metro argues this is not a tax increase, the reality is that borrowing $475 million will cost taxpayers over $800 million between principal and interest payments. And judging by precedent, Metro will ask for additional funds before they’ve completed the projects currently on their roster. Metro has owned its largest nature park, Chehalem Ridge, for nearly a decade without making it accessible to the public—making it a nature project, but not a park. Metro continually asks voters to pay full costs without delivering full benefits.

In 2016, Metro persuaded voters to approve additional funding for similar projects despite concerns that the regional government ought to make smaller demands and demonstrate its reliability. While audits have found some improvements since 2016, Metro still struggles to demonstrate measurable benefits from the thousands of acres they already possess.

The Metro Council will be finalizing the bond language and hearing public testimony in their Portland headquarters at 2 p.m. on June 6. Voters should require accountability and consistency from Metro before indebting ourselves for another twenty years.

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

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QuickPoint! – “They Left Out Radio!” – The Human Genius Behind Economic Growth

By Kathryn Hickok

Bull market? Bear market? Growth? Uncertainty? What does 2019 have in store?

Economies are described in numbers, percentages, and quarterly comparisons. But the picture is richer than dollar values of production and consumption. No economy exists without millions of unique people bringing to the marketplace their creativity, intelligence, initiative, and effort. The knowledge, skills, and experiences of people are the true wealth of a society.

President Reagan once remarked on the limitations of economic predictions that can’t measure human genius. He said:

“You know, back in the twenties I think they did a report for Herbert Hoover about what the future economy would be like. And they included all their projections on industries and restaurants and steel, everything. But you know what they left out? They left out radio! They left out the fantastic rise of the media, which transformed the commercial marketplace….

“And now they make their projections, and they leave out high tech….”*

Fostering economic growth requires a tax and regulatory climate that’s friendly to businesses and the people who start them. The Oregon legislature should remember this when it convenes in February.


* Peggy Noonan, What I Saw at the Revolution: A Political Life in the Reagan Era (New York: Random House, 1990), 146.


Kathryn Hickok is Executive Vice President at Cascade Policy Institute, Oregon’s free market public policy research organization.

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