By John Bebow - January 28, 2010
Tremors from a big vote in Oregon Tuesday can be felt in Lansing.
"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 Oregonian reported. "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. The results triggered waves of relief from educators and legislative leaders, who were facing an estimated $727 million shortfall in the current two-year budget if the measures failed… The double-barreled victory is the first voter-approved statewide income tax increase since the 1930s. Other states, facing similar budget woes, are watching the outcome closely because Oregon, after all, is a state that capped property taxes and locked a surplus tax rebate program into the constitution."
The Oregon vote is striking because of the similarities between the pro-con arguments in Salem and in Lansing.
Oregon Democrats, labor groups, and educators were emboldened by the public's vote to tax themselves more in hopes of better investment in services they deemed crucial… "It means the February session won't be focused on cutting hundreds of millions of dollars from schools, public safety and health care," House Speaker Dave Hunt, D-Gladstone, told the Oregonian. "It's a great sign of hope that Oregonians continue to be ruggedly independent and continue to be focused on a long-term vision for the state."
Oregon Republicans and business interests are smarting from losing a tax-the-rich campaign — they argued unsuccessfully for more intense reforms before higher taxes, and fear the higher levies will kill economic growth.
The same arguments are festering here in Michigan, with some possibility in the next year or two of a grand bargain of reforms mixed with tax reapportionment including possibly lower business taxes and possibly higher sales taxes.
Last week, Michigan Republicans were emboldened by the surprise election of a GOP senator in liberal Massachusetts. This week, Michigan Democrats are emboldened by the Oregon vote.
How will Governor Jennifer Granholm play all this in her state of the state and budget addresses?
6 Comments
I dont see any other way for us to survive the next few years without a similar push. Michigan is spiraling downward, with no end in sight.
You don't need to go all the way out to Oregon to get the warm and fuzzies over this kind of stuff. Save your money. Just go to Detroit they've been doing this sort of thing for the last 3 or 4 decades. Oh boy!!!
What is Oregons unemployeement rate ? Where do Oregon public employees rank nationally in term of compensation and benefits ? Where does Oregon rank in terms of average compensation ? Where does Oregon currently rank in terms of being business friendly ? How about unionized work force ? Maybe were not very similar.
Michigan needs tax *reform*, not tax *cuts*. We also don't need our employees (state or private) pushed down from the middle class to the lower class. Think we don't need a big middle class to grow profitable business? Think again!
Taxes are always a sore point with a lot of voters. Michigan is far from the highest taxing state on individuals. Expanding the sales tax to many services like other states do is a good first step. Adding to the gas tax to bring in more federal road construction dollars would also be a good idea. Not only would it help rebuild our crumbling infrastructure (a deterrent to attracting new business) but it would employ people to do so, helping our unemployment problem.
I fail to see how you can compare Oregon & Michigan when it comes to taxes and budgets.
Oregon's primary business is agriculture, while Michigan's (was) manufacturing.
But if you want to see the effects of a "tax-the-rich" campaign, Matt hit the nail right on the head, take a visit to Detroit (or if its closer to you, Flint) and see how that approach went.
"Tax-the-rich' may sound appealing on paper.
In practice, it has failed time and time again in Michigan.
I'm surprised that Mr. Bebow failed to acknowledge that.
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