People would go and live in places with lower costs of living. As a result of the increasing living costs, people aim at cutting on costs. Oregon favors most people and businesses. This is because there is no sales tax charged on items sold in this region. Those living in the surrounding states therefore envy this area. The Oregonian environment is thus considered to be a luxurious place for people to conduct their businesses. Other states are looking forward to adapting the type of systems used in Oregon.
Without the sales tax, businesses are able to reduce on costs. Sales tax normally consumes a lot of money forcing businesses to increase the prices of their items. Without it, production costs are greatly reduced making items more affordable. Oregon thus has cheaper items compared to other regions. As a result, this has made it possible for small businesses to develop. Compared to other regions, businesses in Oregon thrive well.
Oregonian businesses get to enjoy tax incentive programs. They are taught on how to improve their tax systems in these programs. The core objective of the programs is to increase participation of businesses in community projects and cut on their taxes. The state therefore strives at placing social responsibility in the hands of businesses. They are therefore made more responsible to the society. Independence of the business is also enhanced as they will not be followed up on frequently. They also get very low rates for other taxes. Businesses can however apply to get some of these tax obligations removed from them. This stimulates the growth of industries.
The tax systems in this region are as well a bit lenient. Businesses can be allowed to operate freely without paying tax for a certain period of time. This is for businesses coming up and have not reached certain levels of income. This allows businesses sufficient growth time. The business gets to improve on its performance as the money they would otherwise use for tax is put back into the business. Businesses also acquire more freedom of operation and are not constantly interfered with by authorities.
The Oregonian tax system needs to be adopted by all states. This is because through it, businesses have gained equal opportunities for growth. The sales tax exemption also applies to businesses based in Oregon and have branches elsewhere. Removal of the sales tax ensures that businesses get to diversify and focus on their development. To enable expansion of industries and boost growth of businesses, states surrounding Oregon have to adapt removal of sales tax. This is a great step towards achieving free trade.