Democrats push sales tax on cars in bid to raise more flexible transportation funds

Rep. Mark Gamba speaking on the Capitol steps in Salem this morning. (Photo: Sen. Khanh Pham’s Office)

Where is the state transportation package?

With just three full weeks left in the legislative session, panic is setting in among advocacy groups and lawmakers alike as Democratic party leaders continue to negotiate behind closed doors on a long-awaited transportation funding package.

Instead of sitting on their hands, a notable group of Democrats — including Portland Senator Khanh Pham and Joint Committee on Transportation Co-Chair Chris Gorsek — attended a press conference on the Capitol steps in Salem this morning to unveil their vision for the package. It includes $665 million more than the $1.9 billion investment framework released by party leaders back in April.

This new proposal is from a group of Democrats that are decidedly more progressive than party leaders when it comes to transportation policy. Their vision, which they call the SMART (Safe, Modern, Affordable & Accountable, Reliable Transportation) Framework is based on a memo sent back in April to members of the Joint Committee on Transportation by House Representative Mark Gamba, a Democrat who represents Milwaukie.

Gamba and Pham are members of the Joint Committee on Transportation Reinvestment, a new version of the Joint Committee on Transportation (JCT) formed to oversee the new bill. They are both freeway expansion skeptics and have been solid voices for major transportation reform for years. Joining them in support of the SMART Framework are: Senators Gorsek, Floyd Prozanski, Lisa Reynolds, Courtney Neron Misslin, Jeff Golden, and Kathleen Taylor; and Representatives Rob Nosse, Thuy Tran, Willy Chotzen, Travis Nelson, Farrah Chaichi, Sarah Finger McDonald, Tom Andersen, and Lisa Fragala.

Their SMART Framework looks to raise about $2.5 billion and marks a very strong contrast to the austere proposal shared by a conservative wing of Republicans in early May. Pham, Gamba, and the proposal’s other supporters say the time is now for Oregon to increase funding for transit and ensure robust services statewide — while also making streets safer around schools, investing in ODOT’s urban highways that continue to plague cities with their unsafe designs, and invest more in bikeways, rail, and electric vehicle rebates for bikes and cars.

Joining lawmakers at this morning’s event were representatives from AARP, a school board, a transit worker’s union, and a transit agency.

Democrats enjoy a slim supermajority in Salem, but are reportedly working with a select group of Republicans to hammer out a bill. When they released an update on their package late last month, some transportation and environmental advocacy groups panned the plan’s provisions — which include a cap-and-trade scheme that would fund freeway expansions — as “cap and pave.”

Compared to the Joint Committee’s framework released in April, the SMART Framework includes: a higher gas tax increase; a 2% sales tax on new car purchases and 1% on used cars, instead of a 1% user fee (with sales taxes not being tied to the Highway Trust Fund, thus allowing lawmakers more flexibility in how the revenue could be spent); and a larger increase to the payroll tax that funds transit which would result in no cuts in service. Another difference from the JCT’s framework is something I hinted at back in April: a different approach to the bike tax. Democratic party leaders want to increase Oregon’s existing bike tax from $15 to $24.50; the SMART Framework would instead establish a new, Bicycle Privilege Tax of 0.8%. This progressive approach would replace the regressive, flat-fee structure of the current tax.

These revenue sources would allow the SMART Framework to raise $39 million more per biennium for off-highway bike and walking paths than the JCT’s initial framework, fund Gamba’s $6 million e-bike rebate plan, and more.

The provisions in SMART respond to the type of investments advocacy groups have called for in order to focus more of ODOT’s spending on safe streets, maintenance, and non-driving modes; instead of the traditional focus on freeway and highway megaprojects.

“The SMART Framework is accountable to the Oregonians who have spoken up by preventing cuts to transit service, fully funding our Safe Routes program to get kids to school safely, and by providing the resources necessary for cities and counties across the state to fix their local streets,” said Sen. Pham in a statement.

And Rep. Gamba added that now is not a time for transportation austerity. “We have underfunded our transportation system for decades now, and that continuing to do that will result in bridge closures and highway deaths,” he said. “Kicking the can further down the road will make it even that much more painful to recover. We have an opportunity to do the responsible thing and make our streets safer in the process.”

Whether or not Democratic party leaders heed this advice is hard to tell. But once they do release a bill, they won’t have much time to haggle over it and there are bound to be compromises to get something passed before the end of session on June 29th.


Download the SMART Framework one-pager for more details:

Jonathan Maus (Publisher/Editor)

Jonathan Maus (Publisher/Editor)

Founder of BikePortland (in 2005). Father of three. North Portlander. Basketball lover. Car driver. If you have questions or feedback about this site or my work, contact me via email at maus.jonathan@gmail.com, or phone/text at 503-706-8804. Also, if you read and appreciate this site, please become a paying subscriber.

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Bjorn
Bjorn
23 days ago

It seems very strange to increase the sales tax on bicycles to fund a rebate program for people to buy bicycles…

Watts
Watts
22 days ago

Those dollars are completely fungible, so that separation is a bit of a fiction.

Marvin
Marvin
22 days ago
Reply to  Watts

If the bicycle tax is dedicated to the Community Paths Program by law, then it would not be “fungible” at all. It would be a dedicated funding source.

Watts
Watts
21 days ago
Reply to  Marvin

If the bicycle tax is dedicated to the Community Paths Program by law,

Perhaps reading this will clarify the situation for you:

https://www.wweek.com/news/2025/05/27/portland-city-council-hits-the-links-to-find-spare-change/

In short if the legal dedication is in the city charter or state constitution, then you are right. If they’re not, you’re wrong.

Watts
Watts
22 days ago

“That’s not how it works Watts.”

That is exactly how it works. If I want to spend a million dollars on bike rebates, I need to get that money from somewhere. I might create a tax on car tires that will raise a million dollars, and I might say I’m doing it to fund the rebates, but the two are only tied in some rhetorical sense.

I can adjust my tax or my rebate program independently. If I want to spend more money on the police, I could reduce the amount I am spending on bike rebates, and my budget is still balanced. Suddenly, my tire tax is now helping pay for the police.

Money in has to equal money out, and there are very few rules (our constitutional restriction on spending gas tax funds being one of them) that limit how I slosh money around internally.

It’s kind of like I have a $20 bill in my wallet that is dedicated to bike parts, but if I spend it on beer, I can replace it later with a different $20 bill later, or forgo the bike parts this week.

Micah
Micah
21 days ago
Reply to  Watts

If the state government adjusts taxes to raise revenue by a specific amount and says it’s for a particular purpose and then subsequently spends approximately the same amount on the stated purpose, it seems fair to describe the situation as the tax adjustment “funding” the expenditure, as Jonathan did, despite the fact that the actual funds were commingled. If the revenue generation mechanism and the spending get much out alignment, you might have a point, but specifying a mechanism for funding a given expenditure is a legit governing move (one that I, in general, think we should expect of our government).

Watts
Watts
21 days ago
Reply to  Micah

it seems fair to describe the situation as the tax adjustment “funding” the expenditure

Yes, that’s what I meant by tying the two in a rhetorical sense. It helps you tell a budget narrative. But if the use of funds for other purposes isn’t restricted by the charter or constitution, then it’s only a narrative.

See the WW article I linked to above, or consider the state’s use of marijuana taxes. They were originally dedicated to schools, the M110 redirected them to drug treatment (which is a much better story). We just started paying for schools with other money, and everything shuffled around. The only thing that would have changed if M110 had instead been paid for with income tax was the story we told about the budget.

And maybe the actual dollars spent on M110 did come from the income tax — there’s really no way to know because it’s all coming from the same budgetary pot.

Micah
Micah
16 days ago
Reply to  Watts

Hi Watts,

If the government sets up an earmark and then changes it later (which is how I would describe both your M110 example and the Green/Morillo proposal to loot the golf fund) that is a change in policy, but, to my mind, it does not mean that prior to the policy change there was no connection between the revenue generation and the earmarked services. Sure, the connection is ‘merely rhetorical’, but the same description applies to lots of things the government does. There’s a difference between acknowledging that a negotiator may go back on a deal and writing off the whole idea of dealmaking as unworkable.

I hope the council does not redirect funds that are (in the political narrative) intended for some purpose to other purposes when the budget is tight. I think this applies to PCEF, the golf fund, the Prosper Portland bribery fund, etc. M110 was maybe a different beast, since the redirection was done by ballot initiative, but I think the council will harm the city’s ability to raise revenue if they are deemed to not honor the intent (merely rhetorical and not codified but widely understood in the political narrative) of specific revenue generation mechanisms. Voters will become less likely to approve revenue generation in the future, and that may hurt progressive projects in the long run.

Jake9
Jake9
22 days ago

About Bicycle Excise Tax

The Oregon Bicycle Excise tax was established by the Legislature in 2017. The Bicycle Excise Tax is a flat tax of $15, to be collected at the point of sale. Revenue from the bicycle excise tax goes into the Connect Oregon Fund to provide grants for bicycle and pedestrian transportation projects.

https://www.oregon.gov/dor/programs/businesses/Pages/Bicycle-excise-tax.aspx

Not completely fungible, but not exactly going into anything specific either. Grants are where the NGO higher ups make their money.

Watts
Watts
19 days ago
Reply to  Jake9

“Not completely fungible”

What stops the legislature from spending Connect Oregon funds on other things? See PCEF.

Jake9
Jake9
18 days ago
Reply to  Watts

I’m not a fan of absolutes, but if there aren’t checks and balances than I agree that it is completely fungible.
And yes, PCEF is a slush fund.

Watts
Watts
18 days ago
Reply to  Jake9

I read in the Oregonian yesterday that PCEF will start paying the fees for people to remove trees from their property. Talk about nuts!

Jake9
Jake9
17 days ago
Reply to  Watts

Its so strange, I could have sworn healthy trees helped to mitigate the ongoing climate crisis.

““We heard you. Permit fees have been a burden for many,” City Forester Jenn Cairo said in a statement. “With this new funding, we can remove those costs”

Nothing like just admitting that the fee structure’s sole point is to raise money and not actually regulate tree health. The icing on the cake of cynicism is that they are not actually removing those costs, they are just raiding another fund to pay for it.

I’m curious if those who wrote impassioned treatises that funds aren’t fungible will respond.

soren
soren
22 days ago
Reply to  Bjorn

A progressive tax would be a huge improvement over the current regressive MAGA-style flat tax. In fact, I would be very much be amused if “urbanists” started complaining about having to pay a 0.8% on their $8,000 bougie electric urban arrows. The icing on the cake would be if some of that luxury bike tax were plowed back into a rebate for more working class bikes/e-bikes (don’t care which).

My only complaint is that tax is obviously not progressive enough:
How about:
0% – up $1500
0.4% -1501-2000
3% – 2001-2000
6-9% – 3001+

Even better would be to just give low-income people funds to buy free bikes funded via luxury bike purchases…but we live in ‘murrica.

Middle o the Road Guy
Middle o the Road Guy
22 days ago
Reply to  soren

Is there anything you don’t complain about?

Hope you have zero dollars saved, otherwise you are hoarding wealth and therefore a capitalist.

qqq
qqq
22 days ago

Weird (and complainy) response to soren’s thoughtful comment.

Caleb
Caleb
22 days ago

Though some people with savings are capitalists, not all are. Ideology matters to those without an equivocation bent.

Watts
Watts
22 days ago
Reply to  Caleb

It sounds like your identity is “not capitalist”, despite participating in and drawing sustenance from a capitalist system.

Which is fine by me. You are not a capitalist.

These terms are totally squirrely anyway. Most people who call themselves socialists (not necessarily you) really mean “capitalist with a bigger social safety net than we have in the US.”

By that definition, I too am a socialist, though it’s not a declared part of my identity.

Jake9
Jake9
22 days ago
Reply to  Watts

 “capitalist with a bigger social safety net than we have in the US.”

Also, those in the US who have a personal safety net supported by family wealth have a tendency to believe themselves socialists.

Paul H
Paul H
21 days ago
Reply to  Jake9

I don’t understand (the point of) this comment.

Are you suggesting that people with robust personal safety nets don’t or can’t recognize/believe that social safety nets should also be robust?

Jake9
Jake9
20 days ago
Reply to  Paul H

Hi Paul,

I’m saying the wealthy have robust personal safety nets.
I’m agreeing with Watts in that most who consider themselves socialists do so because of that safety net.
I extended it out a bit further suggesting the trust fund folk amongst us look forward to wealth regardless of what they do so don’t understand the value of money.
Since they don’t understand the value of money (since they’ll always have plenty) they have a tendency to suggest everyone else share the money they worked hard for and are then mystified when no one else thinks that’s a great idea.

Caleb
Caleb
17 days ago
Reply to  Jake9

Your use of “most” might be a stretch. In my experience, millenials and gen z are the most vocal about identifying as socialist, and they tend to have very little, if any, personal safety net, which is why they see legitimate reasons for a robust social safety net and spurn the simplistic conservative narratives that have dominated our society for so long.

soren
soren
20 days ago
Reply to  Paul H

“I have a robust safety net and therefore want no one else to have a robust safety net” is exactly the kind of FYIGM thinking that has made this such a sh*thole nation.

Caleb
Caleb
17 days ago
Reply to  Watts

You are correct, Watts; I do not identify as an ideological capitalist despite the fact I must participate in our capitalism to merely survive. If I had to call myself anything, I’d say I’m a socialist.

Watts
Watts
17 days ago
Reply to  Caleb

I call myself a capitalist (when I call myself anything in this department, which is rare) despite a strong sense that my personal political beliefs are not so different than yours.

Jake9
Jake9
22 days ago
Reply to  soren

Have you joined in with certain other contributors in believing anything you don’t like is somehow “MAGA”?

Daniel
Daniel
20 days ago
Reply to  Bjorn

I’m not sure this plan would increase the tax. What is the cost of the average bicycle sold in Oregon? The SMART Framework plan’s tax doesn’t go up until a bike’s price reaches nearly $2,000 (0.8% of $2,000 = $16). I would not be surprised if the amount of revenue generated under this plan actually goes down, at least until tariffs kick in and boost prices. Anyway, I buy used bikes, which dodges the tax.

jw
jw
23 days ago

With a national sales tax on everything already in effect, we’re going to do this now?

Unlike many of my fellow Oregonians, I’m happy to see people from other states here, but if you want to pay sales taxes, there are plenty of states in any direction you care to go where they will be happy to charge you one.

Marvin
Marvin
22 days ago
Reply to  jw

Every other state/jurisdiction with a sales tax is typically 5% or more, so as long as Oregon adopts a lower sales tax than that, we would still be at a competitive advantage while actually being able to fund more government services.

meh
meh
21 days ago
Reply to  Marvin

Only if they drop the income tax rates and property tax rates. You have to look at the entire tax burden. .

Matt S.
Matt S.
20 days ago
Reply to  meh

I’ll never vote a sales tax unless there’s an equal reduction in income tax.

Eric Leifsdad
Eric Leifsdad
22 days ago

If drivers want people on bikes to get out of the way, they should pay for separated bike infrastructure. We’re still failing to address decades of deferred increases to the gas tax, subsidizing car overuse by over half of the per-mile cost. Until drivers pay for what they get (or get only what they pay for), everything will continue to get worse.

Taxing bikes and pretending we have a “user pays” model is silly relative to how heavily we continue to subsidize cars.

Watts
Watts
22 days ago
Reply to  Eric Leifsdad

We basically do have a users-pay model of road funding, even though roads benefit everyone in our society, including people who don’t drive.

CC_rider
CC_rider
22 days ago
Reply to  Watts

We basically do have a users-pay model of road funding, even though roads benefit everyone in our society, including people who don’t drive.

Roads disproportionately benefit people who drive. Moving goods would be much more efficient, cleaner, and safer if it were done on rails. And heavy freight disproportionately destroys roads.

If we actually cared about benefit to everyone in society, we’d cut all the automaker infrastructure welfare and shift it to rail.

Watts
Watts
22 days ago
Reply to  CC_rider

“Roads disproportionately benefit people who drive.”

Do they? Does a driver get more benefit from roads than a bus passenger or a bike rider? If so, why?

And, as you touched on, we all benefit from good and services delivered by roads, perhaps those unable to leave their houses most of all.
We all benefit from the larger society that is held together by roads.

Whether rails would be better is beside the point, but my feeble mind is unable to see how that could work.

RetiredPirate
RetiredPirate
22 days ago
Reply to  Watts

Roads for moving goods and people around certainly benefit everyone, but we have more road capacity than we need to realize those benefits. We have so much road capacity, and so few alternatives that most people simply cannot get around without buying, maintaining, and driving their own vehicle.

For those who don’t meet the financial barrier to afford that, opportunities are missed, and the economy suffers for it. “Roads” in general are good, but they only benefit everyone equally when everyone has the same level of access.

Watts
Watts
22 days ago
Reply to  RetiredPirate

but they only benefit everyone equally when everyone has the same level of access

Yesterday I walked along a street near my house. I saw other people walking, biking, and driving, as well as two buses carrying passengers along it.

It’s unclear to me why those in cars had more access than I did, or the other people I saw there. It is true that taking the bus is in many ways an inferior experience to the other modes, but it is also true that my crappy econobox offers an inferior experience to my friend’s wife’s Mercedes with its blessed heated seats.

Except for a few odd cases, we all have equal access to the roads, certainly more than we do to, say, schools (restricted by age) or even libraries (which require going to a sometimes distant place rather than, in the case of streets, just stepping out of my home). And, except for a few online services, neither of those can be accessed without first using city streets.

CC_rider
CC_rider
22 days ago
Reply to  Watts

Do they? Does a driver get more benefit from roads than a bus passenger or a bike rider? If so, why?

Well yeah,of course they do. You could remove 75%+ of the roads in Portland and transit users and freight wouldn’t be impacted at all. Most roads exist for the sole benefit of motorists.

Whether rails would be better is beside the point, but my feeble mind is unable to see how that could work.

Its only in the last 60 years of human society that we’ve become dependent on cars.

Here is a map that shows how rail works.
http://transitmap.net/portland-1943/#jp-carousel-5124

eawriste
eawriste
22 days ago
Reply to  CC_rider

CC_rider. Fantastic points. Imagine looking at cities for over 7000 years, where compactness/density, pedestrian plazas, mixed use development, organic growth based on people’s need were all thrown out the window for one new individualistic mode of transport.

We’re living in a historical blip. Cities like Paris and Barcelona are dramatically re-allocating space to people just as that space was dramatically allocated to cars in the 50s.

SolarEclipse
SolarEclipse
22 days ago
Reply to  eawriste

compactness/density

European cities have narrow streets because in the “old days” this would help thwart armies invading cities. Remember movies with men lined up shoulder to shoulder in very wide formations? The narrow streets would break up those formations.

eawriste
eawriste
21 days ago
Reply to  SolarEclipse

I urge you to examine that assumption, do a bit of research and reread what I wrote above a little closer.

blumdrew
21 days ago
Reply to  SolarEclipse

This is patently false. The risk of invasion is not a historically relevant aspect of roadway width, how the roads are used in every day life are. Medieval roads were narrow because it’s cheaper to have a narrow road and most traffic was on foot.

There are specific cases where military motivations have impacted roadway width – Haussmann specifically created modern Paris with wide boulevards to allow the army to clear up Paris Commune style revolutions – but that says nothing about why Paris had narrow streets to begin with, and the need for internal order is probably more relevant in most city’s history than the threat of outside invasion.

qqq
qqq
21 days ago
Reply to  blumdrew

Nevertheless, “facilitation of movements of invading armies” could be an additional reason to oppose ODOT’s freeway widening project.

Watts
Watts
22 days ago
Reply to  CC_rider

Most roads exist for the sole benefit of motorists.

And, following the same reasoning, bicyclists and pedestrians.

John V
John V
22 days ago
Reply to  Watts

Well, no. If they solely supported pedestrians and cyclists, they could be tiny paved paths for a fraction of the cost. Don’t be silly, the roads exist for cars.

Watts
Watts
22 days ago
Reply to  John V

Sorry, I didn’t mean solely bicyclists and pedestrians, I meant bicyclist and pedestrians and cars. There are not many, if any, streets in Portland that are closed to all modes except cars. Urban highways, for example, are closed to non motorized vehicles, but used by transit.

John V
John V
21 days ago
Reply to  Watts

Why do most roads exist? To benefit cars. Period. They wouldn’t exist if not for cars, ergo that is the reason they were built. The fact that (with great resistance) other modes are allowed to use them is besides the point. Crows use the road to drop nuts on to break the shells, and utilities are often buried under them, those are just side effects.

Language can be fuzzy, but when someone says
“Most roads exist for the sole benefit of motorists.”
I think this should be read as “but for motorists, we wouldn’t have all these roads”. Which is obviously true. CC_Rider can correct me if I misunderstood.

Watts
Watts
21 days ago
Reply to  John V

Roads wouldn’t exist if not for cars, ergo that is the reason they were built.

Rome begs to differ.

CC_rider
CC_rider
21 days ago
Reply to  Watts

And, following the same reasoning, bicyclists and pedestrians.

Pedestrians use sidewalks because we had to create separate spaces to try and keep them safe from motorists.

PBOT isn’t repaving roads for the benefit of cyclists. Cyclist benefit is ancillary at best and cyclists are given the gutter of the road when they are given dedicated space.

Watts
Watts
21 days ago
Reply to  CC_rider

Pedestrians use sidewalks because we had to create separate spaces to try and keep them safe from motorists.

This is patently false. Pompeii had sidewalks. There were no motorists there, ever.

Watts
Watts
22 days ago
Reply to  CC_rider

Most roads exist for the sole benefit of motorists.

Following that same reasoning, they also exist for the benefit of bicyclists and pedestrians.

I’m aware of the trolley based history of inner Portland, but I did not know (and probably still don’t) that freight was also distributed throughout the city by rail, or that there were no cars here in Portland’s early history.

Claiming Portland of the 1920s as an example of a city based on rail is the same as claiming that today we are a city solely reliant on buses.

Fred
Fred
22 days ago
Reply to  Watts

Hi Watts: Looking foward to seeing you ride your bike across the Ross Island Bridge at rush hour.

And that’s just ONE small example of a road that exists for the sole benefit of motorists. There are many others – too many to list here.

You are disingenuous, as usual.

Watts
Watts
21 days ago
Reply to  Fred

Looking foward to seeing you ride your bike across the Ross Island Bridge at rush hour.

I’ve done it, even once or twice before they consolidated the walkways onto the north side (it used to be less than half as wide as it is today).

Wouldn’t recommend it, though.

Buses (though not TriMet), trucks, and motorcycles make regular use of that bridge, in addition to cars. I sometimes see pedestrians there as well. So not even an example of a road (or bridge) that exists only for cars at all.

blumdrew
21 days ago
Reply to  Watts

If you look at old maps of Portland, you’ll find pretty extensive freight rail distribution systems, particularly in the central east side and the modern Pearl. There’s also examples of trolley companies doing some freight distribution as well (Pacific Electric in LA comes to mind, but I’ve also seen pictures of freight being delivered on PRL&P tracks here locally).

By 1920, motor vehicles would have been significant parts of a local goods distribution network (displacing horse-based modes), but I’m sure if you had the numbers on how each good sold in Portland arrived at its final destination, rail would be the bulk of the journey, and it would be fair to say that the distribution system was essentially built on rail transport. But that has less to do with Portland and more to do with the lack of other options for shipping goods any appreciable distance.

I think it’s fair to say that “the modern roadway network is for cars” – as the bulk of the cost associated with roads (paving, repaving, traffic control, widening, etc.) is primarily in service of the car.

Watts
Watts
21 days ago
Reply to  blumdrew

if you had the numbers on how each good sold in Portland arrived at its final destination, rail would be the bulk of the journey

This sounds plausible, but we’re not talking about nationwide freight logistics, we’re talking about whether we could have a rail network in lieu of a road network. I’m trying to get my head wrapped around train-based ambulances and fire vehicles, train-based shipments to bakeries, and so on. I just can’t comprehend that.

blumdrew
21 days ago
Reply to  Watts

We have a partial user pays model for road funding, but I’d hesitate to say it’s “basically a users pay model”. At the national level, the Highway Trust fund has been bailed out more than once, and at the state level ODOT gets a significant amount of revenue from registration fees (which do not neatly map on to road use), and some revenue from the general fund and lottery funds.

Watts
Watts
21 days ago
Reply to  blumdrew

In Oregon, the lottery mostly pays for safety campaigns around seatbelt use, and isn’t a significant dollar amount in any case. The national highway trust fund has been bailed out, and that may happen again, but still the vast bulk of the dollars being spent in Oregon are paid for by vehicle owners, either in the form of gas taxes, registration fees, meter fees, or freight assessments.

It may be “partial” but I’ll bet it’s over 90%.

More importantly (to me, at least) is that I no longer think this is an interesting question, because I’ve concluded that there is no compelling reason why roads should be paid for by user fees. Yes, the money needs to come from somewhere, and gas taxes and vehicle fees are a good way of raising that money, but I’m not sure I see a rationale for tying one to the other, because roads are much closer to a universal benefit than many of the things we pay for from the general fund.

Tom
Tom
22 days ago

I think the bill would be a lot more appealing without the inclusion of any new type of sales tax. Oregon voters are especially wary of letting the camel’s nose into the tent regarding sales tax, as any seemingly small sales tax put in place now will be difficult to prevent growing larger in the future.

Instead of a tax on the entire vehicle, I’d like to see a push for a tax on tires specifically, as this seems like an ideal way to offset the loss of money brought in from gas taxes caused by EVs. It also fairly targets the vehicles that put the most wear and tear on our infrastructure – heavy and high mileage vehicles have to replace tires more often and therefore pay their fair share. And you can apply this tire tax to bicycles too if necessary.

Watts
Watts
22 days ago
Reply to  Tom

Hi Tom — You don’t by chance own a tire shop in Vancouver, do you?

resopmok
resopmok
22 days ago
Reply to  Tom

But I’m so tired of being taxed..

.. sorry couldn’t help it.

soren
soren
22 days ago
Reply to  resopmok

I’m not tired at all. Tax me and tax other people like me and redistribute to low-income people — especially to those who do not live in the USA* and need it the most.

*I do realize that this is ‘murrica and that having empathy for “those people” is about an unamerican as ossau-iraty cheese made by mondragon worker-owners.

Watts
Watts
22 days ago
Reply to  soren

He’s not tired, he’s tired. See?

Trike Guy
Trike Guy
22 days ago
Reply to  Watts

That’s a pretty circular pun.

Watts
Watts
21 days ago
Reply to  Trike Guy

It feels like there’s a pretty big hole in it.

SolarEclipse
SolarEclipse
22 days ago
Reply to  soren

You don’t have to wait to be taxed, right now you can send all your income to numerous reputable organizations that will redistribute your money to those in need.
GO GO GO!!!

Watts
Watts
21 days ago
Reply to  SolarEclipse

I most especially recommend the Watts Foundation. And yes, they accept cash.

soren
soren
21 days ago
Reply to  SolarEclipse

to numerous reputable organizations

To the best of my knowledge, there is only one deeply flawed org that enables ultra-low-cost no-strings-attached transfers to very low-income people. That alone says something about how the so-called “west” views redistribution.

It’s darkly comical that so many ‘murricans view redistribution as unimaginable and wrong. I live in a dying-empire* full of toddlers that never learned how to share.

*maybe civilization works better here

Jim Calhoon
Jim Calhoon
22 days ago
Reply to  Tom

So here is a lesson on tire wear. These examples of my own vehicles. My 2012 Ford Focus (3000 lbs.) burned through the original tires in 24,000 miles. My 1997 Legacy GT (3000 lbs.) had to replace the summer tires after 35,000 miles. My 5500 lbs. F150 gets about 55,000 miles out of the AT tires I run. The tiires on the two cars were considered Extreme Summer Tires. These are a softer tires which is better for fast cornering. The Michelin Pilot Sports that came on the Focus are very sticky and expensive. If I had replaced them with the same tires it would have cost me more than the tires for my pickup.

Most tires (not all) will have a milage warranty. They also have a load rating. The milage warranty is the same across all load rating.

J1mb0
J1mb0
22 days ago
Reply to  Jim Calhoon

If there was a tire tax, then you’d probably opt for more durable tires on your lighter vehicles. Given the same model of tire, they should wear out slower on lighter vehicles because physics.

Watts
Watts
22 days ago
Reply to  J1mb0

You mean the way the gasoline tax has encouraged people to drive smaller and more efficient vehicles?

Tom
Tom
22 days ago
Reply to  Watts

When gas prices get high enough, people do trend towards smaller vehicles. Look what happened in the 1970’s. Gas taxes today just aren’t high enough to have that effect.

Jake9
Jake9
22 days ago
Reply to  Tom

Endless taxation of a needed resource (like it or not, gasoline is a necessary resource in the here and now) without providing an alternate in the form of safe and even moderately timely public transportation is not a tax, but a punishment that hurts those who can’t afford it.

Watts
Watts
21 days ago
Reply to  Jake9

We already have what is by most accounts a superior alternative — EVs. I would happily support a much higher tax on gas and diesel — we need to stop using it and electrify transportation ASAP.

Jake9
Jake9
21 days ago
Reply to  Watts

As always I respect your optimism. The grid we have now though is all it’s going to be and I don’t foresee it getting any better or stronger. Another hot summer is almost here, what are the odds of rolling black outs and subsequent heat related fatalities happening as the wealthy try their best to keep their various electronic devices, bikes and cars going?

Micah
Micah
21 days ago
Reply to  Jake9

Are you seriously holding that a robust electrical grid is impractical but petroleum extraction, refining, and distribution is easy? Gas taxes need to go way up. If the climate damage associated with petroleum fuels was reflected in costs borne by the end user, I think a lot of things would become electrified pretty quickly. And we would figure how to generate and distribute the necessary electricity just like we erected gas stations where needed to power all our ICE applications. Or built railways to haul coal around before that.

Jake9
Jake9
21 days ago
Reply to  Micah

Hi Micah,
Yes, that is what I am saying and I say that because a robust grid does not now exist and there are zero indications anyone in government (in Portland and the greater PNW specifically) or the utilities themselves are budgeting or preparing to upgrade the current system.
I’m just going to drop some of the bigger events that made the news in the last little bit….

https://www.oregonlive.com/silicon-forest/2024/12/soaring-data-center-electricity-demand-could-trigger-northwest-blackouts-industry-insiders-say.html

https://www.wweek.com/news/2025/05/07/city-council-rejects-pge-plan-to-run-new-transmission-lines-in-forest-park/

https://www.koin.com/news/oregon/heat-related-death-list-multnomah-coos-klamath-jackson-washington-county-07122024/

https://www.oregonlive.com/weather/2024/01/portland-power-outages-77000-homes-without-electricity-as-new-storm-looms.html

https://wfca.com/wildfire-articles/power-lines-and-wildfires/

https://abcnews.go.com/US/2-power-substations-attacked-washington-state-7k-lost/story?id=95812232

The grid is old, weak, vulnerable and being given over to tech corporate interests while not being upgraded.
That the climate crisis is caused or exacerbated by fossil fuels does not magically mean that electricity will be there to save the day as the trends are looking like it will not be.
Like it or not, fossil fuels are transportable and storable in ways electricity is not (at least not yet).
Also, as far as the end user paying for the costs of ICE use, I (and all of us I’m guessing) are paying for it. I feel it in my lungs, on my skin and it burns my eyes at times. I realize people want to remove that from daily life, but as I’m using the resource I understand I’ll suffer the ill effects of it.
With electricity, the end user is physically removed from the coal plants that pollute only the immediate vicinity, hydro power that kills the natural fish and the laughable wind power that slaughters migratory birds while not really reaching a point of being carbon neutral and let’s not discuss what to do with them when they’ve reached the end of their lifecycle.
So hang on, it’s going to be an interesting ride as we as a society desperately try to upgrade to EVs that can’t supported by the current grid. The time of change is happening now and the grid is staying the same.

BB
BB
21 days ago
Reply to  Jake9

Laughable wind power that is 10% of US energy and 12% of Europe….. Domestic cats kill far more birds than windmills.
Talking points right out of Trumps mouth but you get all sad when someone refers to you as MAGA.

Jake9
Jake9
20 days ago
Reply to  BB

Citation on that 10% wind power please and I didn’t know domestic cats were killing so many geese, hawks and eagles. I won’t be able to look at my kitty the same way now.
Since you and Soren have taken to calling anyone you disagree with MAGA, it’s kind of taken the sting out of that phrase.

Watts
Watts
20 days ago
Reply to  Jake9
BB
BB
20 days ago
Reply to  Jake9

https://en.wikipedia.org/wiki/Wind_power_by_country
This is really difficult to look up.

Jake9
Jake9
18 days ago
Reply to  BB

Fair enough and thank you.

Watts
Watts
20 days ago
Reply to  Jake9

I don’t know where it went, but I posted a citation showing that the 10% number is largely correct. Google it, it’s easy to find.

Micah
Micah
20 days ago
Reply to  Jake9

Hi Jake9, thanks for the reply!

You point out many challenges faced by our electricity distribution system. And yes, fossil fuels present advantages to electricity for many applications. But the impediments to upgrading the electric grid are political, and I expect they will be surmounted when the need to do so is big enough. Electricity demand is growing in lots of areas, not just for transportation, so we will have to deal with the distribution system at some point. I don’t think society will just fall apart because we can’t get it together to put up some transmission lines. We should pressure our decision makers to tax fossil energy to provide economic incentives to reduce emissions and use cleaner technology for HVAC, transportation, manufacturing, chemistry, etc. We have already emitted way too much carbon.

Jake9
Jake9
20 days ago
Reply to  Micah

“We should pressure our decision makers to tax fossil energy to provide economic incentives to reduce emissions and use cleaner technology for HVAC, transportation, manufacturing, chemistry, etc. “

You did and you won. You got the PCEF fund. It’s not doing any of those things. More money is not the answer since it will just go to some something else besides crisis mitigation.

“But the impediments to upgrading the electric grid are political“

So what’s stopping dark blue Oregon, Washington and SoCal from doing the desperately needed upgrades? The evil republicans? The MAGAs?
Tell me what is the problem if you can. It’s been one party blue rule for decades so why hasn’t it been done?
The people in power now have been in power for decades. Kotek is a perfect example of this, if she hasn’t cared or tried while a representative or as Governor, when will she?
You say it’s political (and I agree), but it is also budgetary. The upgrade will cost a lot and take a long time and it’s probably already too late to start to get it done before it collapses. Of course, that will make the rebuild easier, but kind of a bummer for people experiencing the collapse.
It might sound like I’m anti-electrification, but I’m not. I agree the world you’re describing sounds great and I think EVs are a healthy mix, but I’m not blind to the overall problem that the grid hasn’t been replaced and there is no evidence it will be.
Portland and Salem will keep voting in the same people who will continue to maintain the status quo because that’s what they’ve done.
As I said, hang on because it’s going to be a wild ride.

Micah
Micah
20 days ago
Reply to  Jake9

You did and you won. You got the PCEF fund.

PCEF tax is not an energy tax to my understanding. I just bought gas for < $4/gal. It should be much more expensive. If it was, even more people would start driving EVs. I think your view of the grid is pretty pessimistic. Last night I charged my car and my phone simultaneously — no problem! My electrical service is pretty reliable, and I’m pretty sure if it started failing a lot, some corrective actions would be taken. If I did not have good electrical service, all those loathsome dark blue politicians would start hearing from me and my neighbors a lot.

I’m not one who will spend much energy defending the mainstream dems and their electeds, but they (democratic government officials) have actually done quite a bit of work to facilitate grid modernization. The current federal (republican) regime is, of course, doing its best to destroy this progress (and everything else that is worthwhile about our country). Your focus on democrats is curious to me. It’s not like the grid is in great shape in red states (Texas??).

Watts
Watts
19 days ago
Reply to  Micah

Texas generates about 13x is much energy from wind as Oregon does, and about 10x the solar power. They also have a huge amount of battery storage so they can use their solar in the evenings. Their actual grid infrastructure is probably worse than ours, but it’s not like they’re doing everything wrong.

Micah
Micah
18 days ago
Reply to  Watts

Agreed. My comment was in response to Jake9’s contention that the west coast states have poor electrical grids because democrats have controlled the state governments recently. Pointing out red state examples of aging power grids is a lazy rejoinder that shows that democratic control of state governments is not the biggest issue with the power grid. Texas’s success with ‘alternative’ energy sources illustrates that wind and solar are viable without a woke state bureaucracy.

Jake9
Jake9
18 days ago
Reply to  Micah

“Agreed. My comment was in response to Jake9’s contention that the west coast states have poor electrical grids because democrats have controlled the state governments recently.”

I am not making a moral judgement on whether red or blue states have a better electrical grid. I am concerned with Oregon and Washington because I have lived in Portland for 12 years, Washington for 7, hope to return to the Portland area and then retire.
I don’t care about the Texas grid. I won’t be living or visiting there. I do care about the grid here which is why I am focused on it and the way the current party who has been in charge for a long time hasn’t maintained it well or upgraded it. This is not about cheap digs on those silly Dems, if I had the misfortune to live in Texas I would be addressing that their grid is not doing well and the silly Repubs haven’t maintained it.
Just because I would like the government to do its duty to its citizens does not mean I hate the Dems. They are just the ones who are not doing anything about it.
It is okay to expect the Dems to do more for the citizens without being a frothing MAGA.

Micah
Micah
18 days ago
Reply to  Jake9

Tell me what is the problem if you can. It’s been one party blue rule for decades so why hasn’t [electrical power grid upgrade] been done?

By pointing out that red states also have trouble upgrading the gird I was implying that the the party in control of the state government might not be the main factor holding things up. Texas is kind of a special case, since I think they do run their own power grid (??). Most states, including OR and WA, which are the ones that are relevant to me also, don’t. I don’t know a whole bunch about the politics of the power grid, and I’m sure states play a big role in shaping things, but there are lots of parties that have an interest in what gets built and who pays for it. So I don’t know exactly what the problems are, but my instinct says you were on the money when you suggested that finding a way to pay for a new power grid was the problem.

Jake9
Jake9
18 days ago
Reply to  Micah

Fair enough on the PCEF, it’s not a punitive stick to wean people away from ICEs. It is however supposed to be mitigating the climate crisis and if in your eyes it is then I can’t debate with you on it.
As far as the grid, I’m honestly happy for you that yours is holding up and providing what you and your neighbors want.

From your link:

“the grid we have today does not have the attributes necessary to meet the demands of the 21st century and beyond. We are working with public and private partners to develop the concepts, tools, and technologies needed to measure, analyze, predict, protect, and control the grid of the future.”

Exactly what I have been saying. I certainly hope they can figure it out soon because the way that’s worded it doesn’t sound like they have a plan.

Micah
Micah
18 days ago
Reply to  Jake9

Hey Jake9! Thanks, as always, for the interesting discussion.

I think we agree on much, including most factual information about the current state of affairs. I agree with you that the power grid has big problems. I think where we differ is in the inference that this state of affairs means we should keep on with our large per capita consumption of petroleum, coal, and natural gas.

Do you experience a lot of power outages? I’m just going off the experience of myself and my acquaintances, but they all have sufficient (not perfect) service. Of course, that could go south pretty fast.

I certainly do not think PCEF has solved climate change, but I think that’s a ridiculous expectation of PCEF. I have criticisms of PCEF but generally support it.

What I am proposing (the “punitive stick”) is more or less a carbon tax, which is not a new idea. It has attracted support from conservatives (including republicans) at times, although it seems to be out of fashion right now. I think increasing the cost of fossil energy and/or emissions will lead to the most efficient reductions since market forces will find the places where it’s easiest to replace the taxed fuels with untaxed ones like wind-generated electricity.

Jake9
Jake9
17 days ago
Reply to  Micah

Hi Micah,
Always a pleasure to have a respectful conversation with another person. It’s much appreciated and I agree with you that we agree on far more than we disagree.

Fred
Fred
22 days ago
Reply to  Watts

Good point, Watts. We need to vastly increase the gasoline tax so that people notice the amount of gas they are burning.

Watts
Watts
21 days ago
Reply to  Fred

I’m all for it. The higher the better.

J1mb0
J1mb0
21 days ago
Reply to  Watts

That’s pretty funny Watts.

I am pretty sure you don’t need this explained, but I’ll do it anyway for posterity. My main point was that Jim (nice first name btw) Calhoon’s lesson, which I interpreted as showing that vehicle weight doesn’t contribute to tire wear, was fundamentally flawed because he was comparing completely different types of tires.

Jim Calhoon
Jim Calhoon
21 days ago
Reply to  J1mb0

You did not read the last part of my statement about load ratings and milage warranty. When a manufacture develops a tire it will be designed with a life span based on milage. When that tire goes into production it has to be made in several different load ratings to account for the varying weight of the vehicles it could be mounted on. Most passenger cars run on load range B where 3/4 and 1 ton trucks run on load range E (10 ply for the older generation). The only difference between the load range B and E is in the sidewall construction not the tread. My point with my examples is to show that a softer compound tread like a summer performance tire will wear out faster than a harder compound tire.

Paul H
Paul H
21 days ago
Reply to  Jim Calhoon

In all of your examples, my take away was that even soft compound tires last so long that extracting meaningful tax revenue from them would mean that the taxes would have to be very high.

If that was the case (tire taxes high enough to significantly alter the cost to consumers), I would then be concerned that some drivers would forgo/delay replacing worn tires even longer than they normally do, leading to reduced traction and during the wet season. That would impact vulnerable road users the most, I would assume.

Jim Calhoon
Jim Calhoon
18 days ago
Reply to  Paul H

That would depend on how the tax is applied. If it was a fixed tax (so much per tire). It could make some people think about paying more for a tire with a higher milage warranty to increase the time between paying the tax. If the tax is variable based on price or size I do not have a clear picture of how it could affect tire buying habits. The tax would have to be less the the sales tax of neighboring states. Otherwise most of Portland Metro would flock to Vancouver to buy tires. Or they could buy them online from say TireRack and have them installed by a local shop. You are correct in the fact that some people will run there tires past the safe tread depth. I think a good number of people do this now. I blame the larger size rim diameter. When I started driving most cars ran 13″ or 14″ rims and trucks ran 14″ to 16″. Now see rim sizes run from 17″ to 22″. As a rule of thumb the larger the rim diameter the price goes up. I think the auto manufactures are in a race to see who can put largest wheel on a factory vehicle. Chevrolet’s Silverado EV comes on 24″ rims. It will cost owners 2k+ for a set of new tires.(Sorry for my rant on rim sizes)
Since we (maybe just me) has gone down this rabbit hole I will give one more thing to ponder. Most of the less expensive tires are found in the 40 to 45K milage warranty range. This means that at an average of 15k miles driven per years means you will be putting on a new set every 3 years. So if a tax per tire was added people with lower incomes could be taxed more often.

Watts
Watts
17 days ago
Reply to  Jim Calhoon

Also consider that tires are already quite expensive. How much would a tax have to be to fundamentally change any cost-drive behavior associated with tire purchases?

SD
SD
22 days ago

All bike taxes should be waved until Trump tariffs that affect bikes are removed and clearly not coming back.

https://www.bikeradar.com/news/trumps-tariffs-will-be-devastating-for-us-bike-industry

https://www.peopleforbikes.org/news/bike-industry-update-on-tariffs-2025

Mark smith
Mark smith
22 days ago

Oregon has some of the best transit in the country and yet numbers are down. Ask a moms with kids if they want to use transit or drive? By and large, if they are being honest, most will say drive because it’s safer.

Tax the cars. Oregon won’t actually fund transit…but it will have more money..,

Fred
Fred
22 days ago
Reply to  Mark smith

Oregon has some of the best transit in the country

Oh god – really? I ride Trimet all the time and it’s just okay. If it’s the best in the country, then the rest of the country truly has terrible transit.

SolarEclipse
SolarEclipse
21 days ago
Reply to  Fred

Just go north and check out the new train lines and stations in Seattle. Makes one wonder what all the billions of dollars TriMet took of our tax dollars really did with it.

blumdrew
21 days ago
Reply to  Fred

TriMet is very good for a Portland-sized economy, but really shines in a suburban context ironically. Milwaukee is about the size of Portland, and MCTS within Milwaukee proper is basically as good as TriMet is within Portland proper, but there is literally no suburban transit provider in 2/3rds of suburban Milwaukee, and getting anywhere outside the core urban areas is legitimately impossible. Here we have a world-class interurban light rail (Hillsboro to Portland at least) that is reasonably competitive with driving for at least some trips.

Here’s my ranking of Portland sized regions’ public transit I’ve personally ridden transit in:

1. Minneapolis/St. Paul
2. Portland
3. Cleveland
4. Milwaukee
5. Denver
6. Indianapolis
7. Columbus
8. Nashville

I might prefer Cleveland to Portland, or I would if the subway track conditions were better. GCRTA is really quite nice. I’m a Denver hater to my core, and that’s probably a pessimistic ranking based mostly on my Denver RTA experience riding in Boulder County specifically.

Obviously NYC, Chicago, SF, DC, and LA are way better than Portland for transit, but we do alright here at least. As long as you don’t buy the hype that Portland transit is somehow world class, I find it to be adequate to good.

Angus Peters
Angus Peters
21 days ago
Reply to  Mark smith

Well it’s not really the “best in the country” if moms with kids are too afraid to use it because they don’t feel safe.

aquaticko
aquaticko
21 days ago
Reply to  Angus Peters

Chasing the “safe feeling” is to chase a wild goose. The easiest way to feel safe on transit is to take it, and realize that it IS safe.

Contrast that with the intrinsic Russian roulette you get every time you get behind the wheel and join the roads with others, and it’s obvious we’re not dealing with rational calculation when people say they’re too scared to use transit.

Angus Peters
Angus Peters
21 days ago
Reply to  aquaticko

Wow that’s some gaslighting there…you’re discounting the lived experiences of those who have experienced things that don’t make them feel safe on Portland public transportation. If you want them to return telling them they’re wrong is not an effective approach.

Watts
Watts
21 days ago
Reply to  aquaticko

Chasing the “safe feeling” is to chase a wild goose. The easiest way to feel safe on transit is to take it, and realize that it IS safe.

Chasing the “safe feeling” is to chase a wild goose. The easiest way to feel safe on on a bike is to ride one, and realize that it IS safe.

PS
PS
21 days ago
Reply to  aquaticko

intrinsic Russian roulette

Ah yes, the rationality of not knowing what intrinsic means or the actual odds of Russian Roulette to shame people into being locked in a metal tube with the most unhinged members of society. Where do I sign up.

Angus Peters
Angus Peters
20 days ago
Reply to  aquaticko

Aquaticko,
Would you want to get on the MAX with this guy? Would you recommend parents with small children get on the MAX with this guy? This is current day Portland. Portland 2025.
https://www.instagram.com/reel/DKk4irjhqab/?igsh=Mzc3aXVxMnU0aHN4

Paul H
Paul H
20 days ago
Reply to  Angus Peters

No matter how safe any transit system is, there will always be people scared being in close proximity to random strangers and therefore scared of public transit (except when those people go to Disney Land)

blumdrew
21 days ago
Reply to  Mark smith

Driving is objectively less safe than riding transit by any reasonable metric. People don’t ride transit because it’s slow, doesn’t go where they are going, or it’s not something their accustomed to

Watts
Watts
21 days ago
Reply to  blumdrew

Driving is objectively less safe

The nature of the danger might have an impact as well. Driving creates the illusion that we are in control, and the danger of a crash feels like divine intervention, whereas the danger on transit comes from other users, and we primates are very closely attuned to threats from other primates.

Angus Peters
Angus Peters
21 days ago

Why is the Progressives’ answer to every problem MORE TAXES? The embarrassing local implementation and wasteful and ineffective use of the panoply of recently enacted taxes (PCEF, Housing Bond, Homeless Tax, Preschool Tax) are prime examples of the poor governance and simplistic thinking we seem to repeatedly embrace in Portland (and therefore Oregon). It’s time to realize that more $ from taxpayers is not the answer.

blumdrew
21 days ago
Reply to  Angus Peters

Why is the Progressives’ answer to every problem MORE TAXES?

Because we’ve collectively spent the last 50 years slashing taxes and lowering government capacity. You could argue that the impetus for at least some of those taxes and bonds is the fact that property tax revenues were permanently crippled by Measure 5 and 50 in the 1990s, but the impact of the retreat of the Federal Government in supporting housing, economic development, and other key aspects of urban policy shouldn’t be understated either.

Tax burdens are still historically low compared to even the early Regan years. Why is the reactionary take always that taxes are too high even when evidence points to the contrary?

PS
PS
21 days ago
Reply to  blumdrew

Depends on where you’re at in the tax burden strata, no? What was the tax burden of the top 10% relative to GDP during Regan and now? What was the effective tax rate of the bottom 50% historically relative to now? Has there ever been a time where a greater proportion of the populace had a negative net tax contribution than now?

If you don’t pay the homeless tax, the preschool tax and own an old home or rent an old place, you’re not seeing the burden at all, you just blab about it. If you’re seeing a couple thousand here, a couple thousand there, a property tax bill 4x your neighbors, all on top of the income tax, the capital gains tax at the income tax rate, we’ll I guess I’m of the belief you’ve earned the right to bitch about it while surfing redfin looking to leave.

blumdrew
21 days ago
Reply to  PS

What was the tax burden of the top 10% relative to GDP during Regan and now?

Why should it be relative to GDP? Surely the burden itself (tax payment relative to income and/or wealth) is the measure that matters. High income earners paid a top marginal rate of 50% until 1986, when it was cut to 38.5% before being cut to 28% in 1988 (source). This lasted until 1993, when it was raised back to 39.6%, and it’s been in the high 30s ever since. So high income earners pay less now than they did at least until 1986.

What was the effective tax rate of the bottom 50% historically relative to now?

Generally higher than it was in the 1950-1980 period. Governments at all levels have added lots of fees to make up for lost revenue elsewhere which are disproportionately bad for people who earn less money. Our taxation system was much fairer when the progressive federal income tax made up a greater portion of revenue. We’ve actively chosen to shift the burden onto the middle class and poor while simultaneously cutting social programs in favor of military spending, and we keep doing it too. I think this is bad for our society.

Has there ever been a time where a greater proportion of the populace had a negative net tax contribution than now?

Measuring net tax contribution is not simple, and it’s even less simple in a historical perspective. But according to this study of tax burden by income level prepared by DC in 2022, there are no major cities in the country where the lowest income level ($25k or less) have an effective tax rate less than 0%, despite some of those states having an income tax rebate type program (see page 14). $25k or less makes up about 15% of the US population (source). I don’t think I have the time or energy to answer this question in full, but suffice to say that I think there’s nothing wrong with social policy which lifts up those who cannot work to support themselves – which for the record, includes a huge number of people who have been left behind by the minuscule purchasing power of our minimum wage. Alternatively, you could look at these IRS reports but I couldn’t really make heads or tails of what to conclude.

you’re not seeing the burden at all, you just blab about it

I’m certainly guilty of blabbing, but I’m not sure why you think I am somehow incapable of understanding tax policy despite being a renter whose adjusted gross income puts them near the poverty line. We should have tax policy which benefits society at large, and society at large benefits from relatively low levels of income and wealth inequality. You can feel differently about this, that the rich should have gated fortresses while the poor beg at the door, but I’d prefer to live in a place where people actually have the ability to move up the social ladder, and where your zip code or parental income isn’t the strongest determinant for future success. If you think that only the already rich have the right to complain about things, the right to express their genuine political opinions, then I don’t know what to say to you.

Mary S
Mary S
20 days ago
Reply to  blumdrew

Look, I’m all for a fair tax system that funds public goods and gives people a shot at success—but this kind of over-the-top rhetoric is exactly why so many people are tuning out the far left. Saying we either support your vision or we want “gated fortresses while the poor beg at the door” isn’t just wrong, it’s lazy and divisive.
Here in Portland, we’ve seen what happens when idealism runs wild without any grounding in reality. Sky-high taxes, endless talk about “equity,” and yet somehow the streets are less safe, the schools are struggling, and working-class people can’t afford to live here. If that’s the model of low inequality we’re supposed to aspire to, count me out.
You’re also conflating inequality with injustice. Yes, there’s too much wealth at the top—but the solution isn’t to punish success or act like everyone who disagrees with your exact view is some kind of oligarch apologist. Upward mobility isn’t just about redistribution—it’s about competence in government, effective institutions, and creating real economic growth, not just chasing utopian slogans.
So no, disagreeing with you doesn’t mean someone wants a Dickens novel. It might just mean we’ve lived through enough poorly thought-out policy to know that slogans don’t solve structural problems.

blumdrew
18 days ago
Reply to  Mary S

this kind of over-the-top rhetoric

I was responding to a comment implying that only people who pay the Mult Co PFA tax have a right to complain about it. I think that’s wrong on its face, everyone has a right to consider and discus taxation policy. And for what it’s worth, places with high income inequality (South Africa, Brazil, Los Angeles) do tend to have gated fortresses for the rich with Dickensian slums surrounding. It’s a natural result of income inequality in the long run, and I think we should have public policy and institutions to prevent that.

Sky-high taxes

Citation needed. This bit from Watts in reply shows lower taxes at the Federal level for most income brackets since 1979. Sure, things are slightly different locally, but consider a wealthy family living in Irvington. If they make $500k/year, they pay 1.5% of that to the two bespoke taxes in Mult Co/Metro, which works out to $7,500. Let’s say they live at this random house. It’s assessed at $375k (despite being worth at least $886k), and they pay just under $10k in property taxes. If it were taxed at the same rate (relative to assessed value) of 2.5% on the amount it was actually worth, they would be paying $22k in property taxes. Even with recent changes to make the Portland area’s taxation structure slightly less regressive, most wealthy property owners pay less in total local taxes now than they otherwise would have absent Measure 5/50 in the 1990s – this family is saving some $5k. I think this is bad, but I think that the approach to the problem of “our local governments are broke because we neutered the property tax” of “a few top earner income taxes” is much worse than a better property tax system.

somehow the streets are less safe

Most aggregate crime stats in the US are lower than they were in the 1990s.

working-class people can’t afford to live here.

How is this issue solved by lowering taxes on the wealthy?

You’re also conflating inequality with injustice

Yes, because an unequal system that could be better for people is not just. I feel that we have a moral responsibility to have fair and just systems that do not create unnecessarily unequal outcomes. We create systems, and when we create unequal systems, we should change them.

the solution isn’t to punish success

I do not view progressive taxation policy as “punishing success”, I view it as a means of redistribution to the benefit of society at large. Equating “paying relatively more into a system that clearly benefits you” with “punishing success” is just as intellectually dishonest and lazy as me comparing Portland to South Africa for rhetorical flourish.

Upward mobility isn’t just about redistribution—it’s about competence in government, effective institutions, and creating real economic growth, not just chasing utopian slogans.

Evidently, I strongly agree with this. But to me, real economic growth requires interventionist economic policy, some of which should be a purposefully re-distributive taxation structure. I’m sure we disagree on that point, but these are not idle slogans that I read on DSA blog posts, they are things I have come by through lived experience and a lot of reading, research, and thought.

It might just mean we’ve lived through enough poorly thought-out policy to know that slogans don’t solve structural problems.

Right, like the tax-payer funded bailout of banks and automakers during the recession, or the neoliberal free trade agreements that shipped millions of union jobs to Mexico, Bangladesh, and China, or the continued erosion of civil liberties post 2001. In my opinion, most modern US government policy robs the poor to feed the rich (at least in relative terms), and we deserve to have government institutions that respond to the needs of the working class. I don’t think the solution to government ineptitude is slashing taxes, nor do I think that somehow the wealthy tax payers in Multnomah County are getting a raw deal. Given this, it should be obvious why I support relatively higher taxes – since I don’t think it’s true that everyone is overtaxed and I think most of our institutional ineptitude is at least partly a result of structural funding issues that are yet to be resolved.

Watts
Watts
17 days ago
Reply to  blumdrew

real economic growth requires interventionist economic policy

Does it? Why? When I think of companies that have grown rapidly over the past decades, they’re ones where the government has generally been non-interventionist.

I support relatively higher taxes and I think most of our institutional ineptitude is at least partly a result of structural funding issues 

There are many realms that are not well funded where this argument could be true (we just don’t know), but there are also many areas where Oregon’s performance has fallen far short of the funding we’ve allocated (education and drug treatment are in the forefront of my mind, and there are plenty of examples on the federal level such as rural broadband).

Those examples make me wonder if the problem is really money. I’m having a hard time identifying any government institutions that I could say are really doing a bang-up job given the level of resources we’re allocating to them… maybe some of the science agencies before 2024? Maybe social security?

Watts
Watts
21 days ago
Reply to  blumdrew

Tax burdens are still historically low compared to even the early Regan years 

This is most pronounced for those lowest on the income scale.

Here’s the data for those who are interested:

https://taxpolicycenter.org/statistics/historical-average-federal-tax-rates-all-households

taxes are too high…  evidence points to the contrary

This is a particular political outlook (that I don’t share), but I’m not sure how you would refute it with “evidence.”

Micah
Micah
19 days ago
Reply to  Watts

Here’s the data for those who are interested:

https://taxpolicycenter.org/statistics/historical-average-federal-tax-rates-all-households

That’s an interesting and useful link. Thanks!

blumdrew
18 days ago
Reply to  Watts

I wish that chart didn’t end in 2020 (the Covid era payments were definitely a one time thing that seriously impacted gross taxation rates), but that is very handy thanks.

I’m not sure how you would refute it with “evidence.”

Presumably by showing a chart like you did with different numbers where taxes now are much higher than they were in the past.

Watts
Watts
17 days ago
Reply to  blumdrew

Presumably by showing a chart like you did with different numbers where taxes now are much higher than they were in the past.

That, of course, presupposes taxes weren’t too high in the past. Whether taxes are too high or not is a political opinion, not a fact that can be demonstrated or proven.

Douglas K.
Douglas K.
21 days ago

Tolls. We need tolls. Tolls on state highways, tolls on bridges. Set them at the exact level needed to pay for necessary upgrades (or replacements in the case of bridges) and otherwise to the exact level to fully maintain the highway or bridge in perpetuity, and no more.

This could include congestion pricing, which can be balanced by reduced tolls (or no tolls) off of peak hours.

Electric vehicles don’t pay gas tax, so we’ll need tolls eventually anyway. Might as well do them now.

Smart Union Supporter
Smart Union Supporter
21 days ago

Smart move to engage the union. However, there are even larger Oregon state unions who want to pave roads with union labor. Until that mismatch gets ‘hammered’ out there won’t be much progress on smart transport. Anticipate OR Dems ramming through the same old transport package after paying out the Republican hold outs with freeway funding to Newberg.

Le sigh… same as it ever was…