Kotek’s Attack on Preschool For All Tax Makes No Sense

Governor Kotek wants us to feel sorry for high income people in Multnomah County.

 Stating that the Preschool for All tax “is not responsive to the economic realities of 2025,” the governor is pressuring the county to reduce the tax. She cites a decline in tax revenues from upper income filers between 2021 to 2024 and blamed the reduction on them fleeing the county, a fact disputed by county Chair Jessica Vega Pederson.

What “economic realities” is Kotek referring to? The idea if you raise taxes people will flee is an old right-wing claim that just doesn’t hold water. California’s population dropped during the pandemic but has gained back all that loss. And the last time I checked, Manhattan is doing just fine, thank you. Sure, some people will leave if you raise taxes, but that’s far from the whole story.

The economic reality in Oregon is that high earners have a lower total tax rate than most other working Oregonians when you consider the 6.2 percent social security payroll tax on wages up to $176,500. Most of us pay 6.2 percent on all our income. High earners do not.

The Preschool for All tax scarcely brings high earners up to the same total tax rate that most of us pay. Multnomah County should keep the tax, and Governor Kotek should stop promoting debunked theories to coddle the wealthy.

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