A departure from my usual blog posts

I don’t typically get political in this space, but I had a letter to the editor published in The Oregonian this week, responding to Portland’s proposed expansion of the city’s CEO pay-gap tax. I wanted to share it with you directly.

I am an estate planning attorney and a believer in progressive taxation. But Portland’s tax debates need to account for an unusual fact: Here, changing one’s tax picture can be as simple as crossing a bridge.

Over the years, I have advised hundreds of families. Increasingly, I see higher-income clients moving or considering moving. They move from Multnomah County to Washington County or from Oregon to Washington, or they establish residency in states such as Arizona while dividing their time.

These are rarely angry public departures. Most do not campaign against taxes or announce their decisions. They quietly consult their advisers, run the numbers and vote with their feet. Someone moving to Vancouver can keep the same friends, visit family and enjoy the same Portland restaurants while materially changing their tax burden.

The proposed Fair Share Tax applies to certain large corporations, not to the individual clients I advise. But the same geographic reality applies. Residents and businesses evaluate their overall costs; they can relocate more easily than policymakers may assume. Each new tax may be defensible when viewed alone. The cumulative burden is what ultimately influences decisions.

“Tax the rich” has understandable appeal. But progressive taxation works only if the expected tax base remains in place. As Portland’s budgets tighten, city leaders should consider not only what a proposal may collect next year, but also whether our cumulative policies make businesses and residents more likely to leave, or less likely to come. Portland is competing for a tax base, whether we acknowledge it or not.

You can read the original letter on OregonLive here.

I’d genuinely like to hear what you think about this, whether you agree with me or not. Just hit reply and let me know.