Oregon and the Estate Tax

Oregon is one of only two states west of the Mississippi River that has an estate tax. The other one of course is Washington. Between the two of them, there is a constant competition as to which can adopt the latest nonsense that passes for a progressive agenda. Not even California with its insatiable appetite to tax everything that moves, glows or is edible (with the possible exception of hallucinogenic drugs) has an estate tax. California’s exception to taxing wealth that has already been taxed while you were accumulating it is probably due to the mega rich denizens of Hollywood and the Silicon Valley adjacent to San Francisco – politics being mostly about raising campaign funds and satiating their requests for chump change has extraordinary advantages for the one-tenth of the one percenters.

Be that as it may, Oregon’s estate tax is one of the principle reasons that individuals and business have left and continue to leave the state of Oregon. (Virtually every estate planner or wealth manager has a single piece of advice – don’t die in Oregon.)

The net outward migration in 2024 for Oregon. An October 2024 study by the Common Sense Institute summarized it thusly:

“Recent estimates from the U.S. Census Bureau indicate significant shifts in Oregon’s migration patterns, altering its long-standing net gains of both domestic and international migrants. Historically, Oregon consistently ranked within the top 20 states for population growth from net migration. However, since 2020, the state has witnessed profound changes in its demographic dynamics. Although migrants continue to be drawn to the state, some residents are leaving and the birth rate has been very low, leading to small population losses. The last time Oregon saw its population decline was in the early 1980’s when wood product mills closed across the state. The current environment is much different, with the job market healthy in most regions.

“According to the latest Census figures, between 2022 and 2023, Oregon’s population experienced a decline of approximately 6,000 individuals, equating to a 0.14% decrease within a single year.”

While Oregon does not yet require an exit visa for those choosing to leave, you can bet your bottom dollar that Oregon’s penchant for increasing taxes ranks high as one of the reasons. Right behind that, of course, is the way Oregon spends those tax dollars – waste, fraud, dalliance with the latest sexual perversions, diversion to political supporters, and just plain stupidity rank high as to the causes. Regardless, you can also count on the fact that virtually all of those 6,000 individuals who left took their wealth, their skills, and their jobs with them.

But Oregon’s demographers are busy with their graphs, charts and statistical manipulations in an effort to put lipstick on this pig. There principle argument is that Oregon, on a per capita basis, is one of the largest beneficiaries of “international inward migration.” A July 13, 2025, article in Oregonlive.com – the online edition of the failing, of he left leaning Oregonian – noted:

Oregon’s population has grown very modestly over the past few years, a sharp contrast to the robust expansion during the 2010s. But even that modest growth has relied upon people moving to Oregon from other countries, according to newly released census data.

International migration netted Oregon nearly 24,000 additional residents last year. Meanwhile, 1,200 more people moved away from Oregon to other parts of the U.S. than moved to the state from elsewhere in the country.

But that is precisely the same description of the massive surge of illegal aliens under the administration of Joe Biden. Analysis of information obtained from those illegals briefly detained indicated that while the overwhelming majority crossed into America through our southern border, they in fact were from everywhere in the world including nations designated as harboring terrorists. But Oregon’s political class including its media seem to embrace what should be an embarrassment and a cautionary tale. The Oregonlive.com continues:

‘”With the Trump administration working to stem the flow of people moving into the U.S. — both legally and illegally — Oregon may not be able to continue looking abroad to maintain or grow its population. Most Oregon counties had more migrants from other countries than from other parts of the U.S. between 2023 and 2024, according to census data first noted by Portland pollster John Horvick.”

As noted above, those leaving Oregon took their work, their jobs and their skills with them, not so with Oregon’s those coming to Oregon for its generous – no questions asked – welfare state. An October 23, 2024 article in That Oregon Life noted:

“Oregon’s homeless population has surged dramatically in recent years. According to The Oregonian’s article, the number of people experiencing homelessness in the state increased by 23% between 2020 and 2022, and by another 12% from 2022 to 2023. In total, there are now 20,142 Oregonians without permanent housing, with a staggering 48 people per 10,000 residents experiencing homelessness. Experts believe these numbers are likely an undercount, given the challenges in accurately tracking unhoused populations.”

And government statistics indicated that those relying on welfare in Oregon continue to increase. According to the Federal Reserve Bank in St. Louis (FRED), the number of welfare recipients – Supplemental Nutrition Assistance Program (SNAP) – in Oregon in 2020 was 704,964 and rose to 733,747 by 2022, – I could not find similar date from FRED for 2024, but according to USAFacts the number of SNAP benefits increased to 757,700.

And while the apologists for Oregon’s misguided politicians may revel in the diversity and international flavor of its new migrants (legal and illegal) the cold hard facts are that Oregon’s net inward migration is a further drain on its resources. Nobody should be proud when they drive those who contribute away nor celebrate when they encourage those who continue to be a burden on the resources of the state. And while that may boost the changes of progressives to win elections, it is a steady march towards economic suicide.

So, congratulations to state Sen. Kevin Mannix for trying to eliminate Oregon’s burdensome estate tax as a means to convince those producing wealth to stay and those with wealth to return.

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