Income inequality in Oregon continued to grow in 2021, according to new tax data.
In 2021, the average Oregon taxpayer earned over $43,000. That's more than in any year in the last four decades, even when adjusted for inflation.
However, the top one-percent of earners greatly outpaced the general public. They saw an over 20% increase to their adjusted average incomes, setting a new record of $1.7 million.
These findings come from a new report from Oregon Center for Public Policy.
“It's continuing a trend that we've seen over several decades and generations at this point," said Tyler Mac Innis, an OCPP analyst.
In a previous conversation with KLCC, state economist Josh Lehner said the 2021 trends were linked to taxpayer behavior. He said investors and business owners cashed out when the market was good and stocks were high.
Lehner said with how markets fell last year, a situation like that one is unlikely to repeat soon in the following years.
Mac Innis said he's hopeful that Oregon’s new Kids’ Tax Credit will help lift low-income families in the future. But he thinks these findings show that the rich need to pay more taxes.
"It remains to be seen, years from now, when we're able to look back at 2023," said Mac Innis. "But it's fair to say we need to be doing more to make a dent in reversing this trend."
