Oregon manages to cherry-pick consumers from CA and WA, mostly along the State borders, by holding to a “no sales tax” policy. High hotel/motel room taxes help to make up for this, and the dollars spent in Oregon add to economic competitiveness, although there may be better ways to lure dollars and jobs to Oregon.

The WSJ today includes an op-ed article that provides some insight into why high State income and sales taxes drive people away. CA is used a great example; that while the weather in CA, especially So. Cal, is compelling, this has not been enough to keep its immigration balance out of negative territory.

So where does Oregon sit on the list competitive States? Nowhere in the top ten.

Oregon has managed to avoid large-scale home price re-adjustments in 2007. If the State remains economically less competitive than other Western States, there is no guarantee that this impressive NW bubble of home price protection will protect Oregon homeowners for years to come. It’s human nature to believe that during good times, those good times will last forever..

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