1- State income taxes can be deducted from federal income returns but sales taxes cannot - score one for income taxes. (Correction: through this tax year only - though it may be extended -you can choose to deduct either state sales tax or state income tax but not both. With a new sales tax and reduced income tax however, it likely means a lower deduction on your federal return)
2- However, income taxes that are too high can (and apparently do) influence wealthier households' location decisions and can make it harder for businesses to hire in a national job market. Oregon has one of the highest income tax rates in the country: 9% for income above $6,850 (only Vermont has a higher upper tax rate, 9.5%, but it is for over $330,000. California can get higher on income in excess of $1 million).