In Portland, a new report published by Councilor Mitch Green's office is taking a stand against the notion that higher taxes are driving wealthy residents out of Multnomah County. This report, authored by Dr. Erik Dean, counters the "tax flight" claims that have been a cornerstone of arguments by the Portland Central City Task Force, which has been advocating for scaling back on taxes like those funding the Preschool for All (PFA) initiative. Critics of the PFA program allege that the imposition of taxes on high-income earners will lead to their departure and ultimately dismantle the voter-approved preschool program.
The report, aptly named "The Illusion of Preschool Tax Flight," sheds light on recent data showing a 28.7% increase in households earning over $200,000 from 2021 to 2023, alongside a 16.5% increase in the number of filers paying the PFA tax, according to Portland's government news release. In direct opposition to the central narrative peddled by tax reform advocates, the data reveals income gains, not losses, within the county. Dr. Dean's analysis suggests that the apparent increase in average income of those leaving the county during the pandemic should be attributed to capital gains, interest, and dividends rather than a localized tax exodus, a pattern consistent across major cities irrespective of their tax policies.
Addressing the findings, Councilor Green voiced his defense of the Preschool for All program: "Preschool for all lifts families out of poverty, reduces disparities, boosts graduation rates, and makes Portland a place where young families can actually build a life." He pinpointed the narrative of crisis, spun by the opposition as a ploy to dismantle public programs that serve the wider community, especially working families. Instead, the "tax flight" theory, which Green's report dismisses as a "statistical sleight of hand," has been wielded to justify further tax cuts for the wealthy, even in the wake of significant federal tax reductions under the previous administration, as reported by Portland's government website.
As a result of these findings, Green, alongside several City Council colleagues, has submitted a persuasive letter to the Multnomah County Board of Commissioners, urging them to reject proposals for indexing the PFA tax to inflation as well as opposing any future attempts to means-test the program. "The real doom loop starts when we let them use fear and manipulated data to dismantle the programs that lift us out of crisis; when we abandon our democratic mandates; when we sacrifice our children's future to protect the windfall gains of the pandemic's winners," Green stated, as noted by Portland's government website. This move comes in defense of the program, which was established with strong backing of 64% of voter support and now serves as a critical support system for local families.
