Fujitsu is packing up and leaving Gresham. Several hundred factory jobs are gone.  Some government jobs will have to go.  Fujitsu was a major source of income for both the private and public sectors..

What is the local government's response to the situation?  An effort to save government, of course.  They are planning on submitting a special tax levy to residents in the next election. 

Local people lose their private economy jobs, so their government decides the solution is to raise taxes on their homes. What a good idea! 

Think of how higher property taxes will encourage some other company like Fujitsu to locate in Gresham.  Can you imagine the discussion in the corporate boardroom?

"Well, Pennypacker, which of the three new possible plant locations are you recommending?"

"Sir, Gresham, Oregon looks good.  They have just raised their property taxes, which will make it more expensive to do business there.  And, there's the extra benefit that our workers will find it more expensive to buy homes in the community. That will mean we shall have to raise our prices to cover the higher corporate costs and personal property taxes.  With luck, the higher prices for our products will reduce our sales volume."

"That's the place for us, Pennypacker.  Let's open a manufacturing branch in Gresham."

Russia goes broke, North Korea has mass starvation and you have to bring your own light bulb if you want to read at night in Cuban hospitals, but still American governmental bodies don't get it.

Including federal, state and local taxes, gas taxes and fees and regulation costs, the people of Gresham probably already fork out  half of their annual incomes to the government.

Why don't they get it over and just raise taxes to 100% and open an agricultural commune?  Good apple growing climate out east.  Everybody could get a shovel and wear a Mao cap.

Isn't there anybody in Oregon government who understands how an economy works?

(LL)

(C) 2002 Oregon Magazine