Oregon's tax initiatives: Now's no time to party with taxpayer money

GOV. Chris Gregoire and top Democrats in the Legislature are all but popping Champagne corks in celebration of two successful Oregon ballot measures to raise taxes. Whoopee. Party!!!

At risk of interrupting the merriment, slow down. Washington is not Oregon. And the two tax referendums were constructed in a way that does not represent Northwest-wide enthusiasm for the brilliance — or lack of it — of raising taxes in a recession.

Oregon voters said yes to Measure 66, boosting the income tax on individuals with taxable income above $125,000 or households above $250,000. Voters also blessed Measure 67, raising corporate income taxes and setting higher minimum tax rates for businesses.

Increasing taxes on businesses in a state with nearly 11 percent unemployment does not make a lot of sense. Higher taxes will not produce more jobs and may limit the ability to add people to payrolls.

Even the most avid referendum supporter will admit the limitation of the process is it asks a simple up-or-down question. In the case of the two measures, the questions could be boiled down to: "Would you like to raise taxes on someone other than yourself?"

No wonder Oregon voters said yes by a margin of roughly 54 percent for both proposals. It was the first time since the 1930s that voters approved a statewide income-tax increase.

All of which led our governor to exult: "It is gratifying to see that the public understands the importance of preserving services to the most needy and providing education to the next generation — especially now when those efforts are most needed."

Oregon voters were presented with a difficult choice: tax increases or further erosion of education and other state services. These are daunting times for legislatures across the country.

Washington's political leaders may think they see a trend, that voters here will also be willing to pay higher taxes to preserve services.

But the Legislature's first task, and it is unpleasant, is to make sensible, long-term cuts to programs so the budget becomes sustainable year to year. This is no time for a tax party.