Ask the average Portlander, and they will tell you that the rich should be paying for all the free government services they want. They proved this multiple times by passing a Homeless 1.5% income tax on taxable income over $125,000. They did it again by passing a Preschool for tax in which income over $125,000 is taxed at rate of 1.5% and an additional 1.5% (3% total) on income over $250,000. This makes Portland the 2nd highest tax rate city in the country at 14.69%.
“Good!” say many of the local reddit and forum communities. Eat the rich! Well – it turns out the rich don’t just sit around to be eaten – they leave. Despite claims this could NEVER happen, it is happening. Portland has seen 3 straight years of population decline since 2021. And who is leaving? Overwhelmingly it is the higher earners.
This isn’t academic or speculation – it’s been happening for 3 years straight with no signs of stopping.
The average income of households moving out of Multnomah County was nearly $105,000 a year in 2022, according to newly released tax data. That’s up by more than a third from 2020.
Among those moving into the county, the average household income was about $74,000 – up just 8% compared to 2020.
That disparity may help explain why Multnomah County’s population has declined this decade, reversing rapid growth in the early 2010s.
WWeek
While the activist groups are cheering this heavy tax for ‘rich’ people – actual government and economic leaders are sounding serious alarm bells for years now. Portland economists are even calling it an economic ‘doom loop‘. This trend first frightened state economists, and now we’re seeing basic services like ODOT so badly defunded that they are laying off hundreds and may not be able to make even essential safety work on roads and bridges. Additionally, 36 counties are facing major budget cuts.
It’s a sadly common failure of Oregon government leadership. Portland has gone from the 2nd fastest growing city, to one of the 6th fastest shrinking major US cities.
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