Most Viewed Revenue Forecast / Oregon: Taxpayers will split a $3 billion kicker | News

Oregon taxpayers can expect to share a $3 billion kicker.

The kicker tax credit kicks in when actual state revenue exceeds projected revenue by at least 2%. An amount is then returned to taxpayers through a credit on their tax returns.

The new figures for the kicker tax credit are announced in the state revenue forecasts which have just been published.

“The economy continues to thrive. Jobs, income, spending and production are all growing rapidly. However, pessimism about the expansion is growing,” is the opening statement of the economic and earnings forecast from Oregon June 2022 published by the Oregon Office of Economic Analysis.

The summary indicates that the economic dynamics are changing.

See the full report attached.

“Inflation is at a multi-decade high, eroding household budgets,” the summary said. “Russia’s invasion of Ukraine has created an oil shock and raised fears of an upsurge in conflict. A new round of pandemic-related shutdowns in China are expected to exacerbate global supply chain challenges.”

The summary indicates that the economic dynamics are changing.

“The United States or Oregon is no longer in recovery mode, but in net expansion territory,” the summary reads. “The challenges, risks and trends associated with a mid-cycle expansion are different from those encountered during the initial recovery.”

The summary says the 2022 personal tax filing season “has been shocking.” Tax season payments will be more than $1.2 billion (70%) more than last year.

The summary says the unexpected revenue growth seen this year has left Oregon with record balances this biennium, followed by a record high in 2023-25.

  • The planned personal kicker is $3.0 billion, which will be credited to taxpayers when they file their returns in the spring of 2024.
  • The projected business kicker is $931 million and will be withheld for education expenses.

Even so, if the balances are not spent, the net resources for the 2023-25 ​​biennium will have increased by $427 million compared to the March 2022 forecast, according to the summary.

Statement from Governor Kate Brown

“Today’s revenue forecast indicates that we continue to see strength in Oregon’s economy as we round the curve in recovering from the pandemic. Strong state revenues, coupled with a unemployment rate which has returned to pre-pandemic levels, should be good news for Oregonians.

“However, I know that not everyone in Oregon is feeling these positive effects, especially given the rising cost of living. The good news is that the continued strength of the economy will allow the legislature to consider additional one-time investments in the upcoming budget cycle – like those we recently made in housing, behavioral health and childcare – to further spur growth and support working families, so that all Oregonians are seeing and feeling the benefits of our economic rebound.

“Even with growing revenues, it is still important that we proceed with caution and plan for the future. Strong leadership in Oregon has led the state to a place where we have ample reserves for us. to help weather unprecedented times.We must continue this forward-looking leadership as we move into the next budget cycle.

“Oregon clearly has a tough economy. Our forecast is up for the eighth straight time. We need to be cautious. Experts see storm clouds on the horizon. savings. We will keep moving forward.”

Statement by Senate Republican Leader Tim Knopp (R-Bend)

Oregon economists predict that Oregon budgets will have large surpluses, much of which will be returned to taxpayers based on the amount of taxes they paid.

“Thanks to the Kicker, Oregonians will get some of their taxes back and with them, a well-deserved break from the growing burden of inflation,” Knopp said. “The Kicker continues to act as a brake on the Democrats’ continued urge to blow up spending. Now more than ever, protecting the Kicker is critical. Too much spending has gotten us into this inflation mess. , that won’t get us out.

“Right now we have extra money, but our economists are predicting an economic downturn soon. We need to budget wisely for the future.