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January 27, 2010 at 8:21 AM

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Green light for tax increases? Gregoire praises Oregon vote

Posted by Jim Brunner

OLYMPIA -- In a closely watched test of Northwest voter sentiment on taxes, Oregon decided yesterday to raise taxes on the wealthy to stave off more cuts to government services.

The Oregonian's Harry Esteve has the lede:

"Oregon voters bucked decades of anti-tax and anti-Salem sentiment Tuesday, raising taxes on corporations and the wealthy to prevent further erosion of public schools and other state services.


The tax measures passed easily, with late returns showing a 54 percent to 46 percent ratio. Measure 66 raises taxes on households with taxable income above $250,000, and Measure 67 sets higher minimum taxes on corporations and increases the tax rate on upper-level profits."

Think that decision will embolden Washington lawmakers as they consider tax increases to close the $2.6 billion budget shortfall?

Well Gov. Chris Gregoire certainly wasted no time in praising Oregon's vote. She put out the following statement this morning:

"Oregon voters met the challenge of these difficult times and clearly said that schools, healthcare, public safety and other essential services cannot be forsaken. 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."

That was quickly followed by a statement from the "Rebuilding Our Economic Future Coalition," an alliance of liberal groups urging Washington Democrats to be bold in raising taxes instead of making further cuts in education, health care and services to the poor.

"The Oregon results should have a major impact on ongoing budget discussions here in Washington State. Oregon voters are a lot like Washington voters - we both recognize that deep cuts to health care and education would be devastating to those hit hardest by the recession, would destroy our quality of life, and would hurt our ability to rebuild the economy. "

Update: 3:52 p.m. Asked about the Oregon vote Wednesday afternoon, House Speaker Frank Chopp, D-Seattle, said he too was pleased with the result.

"What I take away from it is if you come up with common sense solutions to meet the priorities of the people, the people will sustain you," Chopp said at his regular media briefing.

"They have a different tax system than we have so it's not exactly the same, obviously," Chopp added. "But I think people, when they're faced with making a choice, they'll make it in favor of common sense investments in our values, programs like public schools and health care."

Of course, the task for lawmakers here may be more difficult since our most lucrative tax source -- the sales tax -- cannot easily be targeted toward the wealthy like Oregon's income tax.

Republican legislative leaders say Democrats shouldn't read too much into the Oregon vote.

"Oregon is a very different state than we are. They might be more socialist or whatever you want to call it than we are. I know we want to move that direction but I don't think we're as ready as they are," said House Minority Leader Richard DeBolt, R-Chehalis, during a news conference.

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Raising taxes in the middle of recession is disastrous economic policy. This is how recessions become depressions.  Posted on January 27, 2010 at 8:57 AM by AZBlue. Jump to comment
Our legislators and governor are color blind. The light on new and higher taxes in Washington is RED! Oregon's $14.7 Billion budget is...  Posted on January 27, 2010 at 8:46 AM by I'm Fed Up!. Jump to comment
Legislators are crapping in their pants from threats by their union supporters. If they don't raise taxes, the unions will campaign against...  Posted on January 27, 2010 at 8:51 AM by I'm Fed Up!. Jump to comment

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