Oregon expects budget pain, then surplus from Trump tax law

SALEM, Ore. (AP) – A report from Oregon’s state economists released Friday warned the federal tax overhaul could cost the state more than $200 million in revenue in the short term, amid an overall bright outlook for state businesses and workers.

The report, released by the Oregon office of Economic Analysis, predicted that state tax revenues would drop, then eventually begin to rise after changes made in the Tax Cuts and Jobs Act, signed by President Donald Trump late last year.

Oregon uses federal tax law to calculate state taxes, meaning that changes in federal code automatically impact state revenues.

Economic volatility, including the sharp drop in US markets earlier this month, is expected to have a delayed effect on the state.