Are all the people retiring to Oregon dragging the economy down? (Corvallis: real estate, house)

[willy_mays]

Saw an article in Oregonlive talking about 13 (?) rural counties where deaths outnumber births and what the state is worrying about with that.

Got me thinking.
Does the tax haven status for retirees hurt Oregon?

Is it even a 'tax haven'...?

What would you propose doing to help these dwindling rural outposts...if you would do anything at all for them.

Thanks.

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[hamellr]

Retirees have been moving to Oregon for decades, almost centuries. A lot of older people were told by Doctors to move to Oregon in the early 20th Century because of the environment here.

The fact that the US Government owns, what 75%, of the State is hurting Oregon more then retirees. It can be argued some what that the Urban Growth Boundary hurts the state too, but even without it there isn't a lot of businesses moving to more rural cities in the first place.

[Tulippsy]

I don't think you can call anyplace with state income tax a tax haven.

[willy_mays]

Supposedly, seniors are exempt? Is this correct?

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[PNW-type-gal]

Originally Posted by willy_mays

Supposedly, seniors are exempt? Is this correct?

Not really. Oregon doesn't tax Social Security benefits but taxes all other income (IRA withdrawals, pensions, etc).

[Larry Caldwell]

Social Security is exempt, pensions, interest income, dividends and 401k distributions are not. Capital gains are taxed like ordinary income, so it can be a big whack if you sell stock or real estate. Oregon also has an estate tax. No way is Oregon a tax haven for seniors, except for the ones who don't have anything to tax anyway.

[Billy_J]

Money flowing into a city or state from outside the area is GOOD for that area's economy.

Example 1: A small town with just national owned fast food and retail businesses - no other jobs. The profits from those businesses flows out of the community. Money is "drained" from the community.

Example 2: A small town off the freeway. Lots of travelers from outside the area stopping at fast food businesses - lots of money flowing into the community from outside the area. Money "flows into" the community.

Example 3: A bunch of retired people living in a community. Their income comes from the federal government or pension funds. Lots of money from outside the area flowing into the community.

Basically national/international businesses which get their income from outside the city/state will bring money into the community. Like selling burritos or computer chips nationwide from Oregon. Same with retirees.

[Deezus]

Originally Posted by hamellr

A lot of older people were told by Doctors to move to Oregon in the early 20th Century because of the environment here.

Really? That's fascinating.

"Mr. Thompson, I'm writing a presciption for Dr. Brown's patented nerve tonic and a one way ticket to Corvallis."

[tablemtn]

A lot of older people were told by Doctors to move to Oregon in the early 20th Century because of the environment here.

Right. The coast used to house several sanitariums for tuberculosis patients, too. The thinking was that the cool fresh salty ocean breeze would have a healing effect on the lung tissue, as opposed to the "malarial" heat of areas further south. There is still a population of older retirees who stay on the coast for similar reasons.

It's not so much that Oregon is a retirement "haven," though. What has happened is that people from more expensive areas (not just California, but even from the Seattle region) looked at Oregon real estate prices, found them reasonably cheap, then cashed out and put the extra money toward other ventures, like RVs or vacations.

There is a similar effect going on in parts of Idaho.

[jjpop]

Marge: Maggie! We've got a surprise for you. [brings in the cake. Everyone takes photos of her, and Maggie gets frightened by the flashbulbs, candle flame, and darkened room. She whimpers]

Abe: Ooh! Put some Lister's Carbolic Unguent on a wad of cotton, and stick it in her ear! That'll stop them shakes.

Jackie: No, no. What she needs is a balsam specific.

Abe: Balsam specific?! Oof! While we're burning money, why don't we give her a curative galvanic belt too?

Bart: [raspy] Don't forget to give her Smeckler's Powder.

Abe+Jackie: Don't make fun!