Final answer:
In Oregon, a military taxpayer can subtract all taxable military income earned outside the state from their income for state tax purposes.
Step-by-step explanation:
For Oregon, a military taxpayer can subtract from income: c. All taxable military income earned outside the state. This special tax provision is meant to offer financial relief to those in the military who are serving outside of Oregon by not taxing income that was earned while performing military duties in another state or country. Such state-level tax benefits for military personnel are essential aspects of the broader fiscal policies that ensure that individuals who serve are not unduly burdened tax-wise for their service to the country.