Taxpayers in the Pacific Northwest state are getting in line to get a $1.9 billion kicker refund credit in the next coming months. Moreover, if the kicker may occur if actual state revenues go beyond the perceived revenues by 2 percent or more over the two-year budget cycle. The excess, including the two percent trigger amount, is returning to taxpayers through a credit on their following year’s tax return. This is according to the State Revenue Department.
Below is a Pacific Northwest Revenue Forecast that is presenting to state lawmakers today. Moreover, the economic outlook remains bright. In fact, strong household incomes, which are boosted heavily by federal aid during the pandemic, are, in fact, the basic driver. In fact, consumers have no shortage of firepower, if they, in fact, want to and need to feel safe enough to spend.
Taxpayers: Underlying Driver of Income
Strong household incomes, which are boosting considerably by federal aid during the pandemic, are the underlying driver. Consumers have no shortage of firepower if they want to and feel safe enough to spend.
Actual Consumer Spending
Moreover, the key to the outlook does, in fact, remain to translate this firepower into actual consumer spending. In fact, this would be particularly in the hard-hit service industries. Today, the firms are trying to staff up as quickly as possible. This would be to meet this growing demand. Therefore, the actual number of jobs created this year will be the largest on record in Oregon. Now, the state’s labor market is now expecting to regain all of its lost jobs by next Summer. Or in one quarter sooner than in the prior forecast. While these dynamics still remain intact, the risks are weighing, in fact, toward the downside.
There is growth in a supply-constrained economy that is very challenging. Firms are struggling with supply chains and as well as a tight labor market. Moreover, the wages are going up quickly to attract and then retain workers. Still, prices are increasing as the demand does continue to outstrip supply. On top of this, the present delta wave of the COVID-19 pandemic does complicate the pressing term outlook. In fact, what does matter most economically are the shutdowns. An unpretentious pullback in consumer spending in small categories will not lead to mass layoffs.