Oregon Public Broadcasting

The filing deadline for taxes is about a month away. State economists expect Oregon's revenue to show less growth due to increased federal tax rates in 2013.

Oregon relies on personal income taxes to generate revenue. That amount changes every year depending on people's taxable income.

At the end of 2012, some people cashed out investment income due to the expiration of the "Bush Tax Cuts." That's according to the Oregon Office of Economic Analysis.

State economists expect Oregon revenue to reflect the fact that there's less money to tax because many high earners and others sold investments to avoid higher federal taxes.

Josh Lehner is a state economist. He says last year brought a bump in tax collections due to the stronger economy and more taxable investment income.

"We knew last year was going to be a pretty good year in terms of tax payments," Lehner says. "We know this year is going to be pretty lousy relative to the fundamentals."

Lehner still expects positive growth this year because more people are working, and the stock market is up. It's just that the rate of growth is expected to be lower.

This story originally appeared on Oregon Public Broadcasting.

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