Dems ignore Sheketoff's advice

As I wrote yesterday, the Oregon Center for Public Policy's Chuck Sheketoff strongly recommended that Oregon raise taxes on the wealthy to close the impending state budget deficit.  He also advised that any cuts in state services would exacerbate the economic downturn.

So what does Governor Ted Kulongoski do?  He proposes across the board cuts in ALL state spending, including for schools and in aid to the poor.  No mention of a tax hike for Oregon's fat cats, like PGE CEO Peggy Fowler who plans to retire soon with something like $11 million smackeroos.

It could be worse, I suppose.  The Republicans, rather than the tax-averse Dems (in fairness Kulongoslki HAS proposed an increase in the  gas tax) could be in charge.  Senate Republicans have called "..for a tax cut to stimulate the economy." 

Apparently they don't know that tax hikes, not cuts, stimulate the economy.

I'm going to start to publish selected pieces of Larry Beinhart's wisdom every day.  I'll start with this bit:

"High taxes create an incentive to reinvest profits into long-term growth. ...

"The higher taxes are (and from 1940 to 1964 the top rates were around 90 percent), the more this is true."

Comments

[Steve R.]

Democratic governors of Oregon have ignored the revenue crisis for years. Now that they have a super majority in the house, they have no excuses.

Now Ted, who has been extremely erratic about the looming crisis (is ed sacred or not?), wants across-the-board cuts.

Our revenue stream needs a comprehensive overhaul. If the coming legislative session doesn't address this, we're all screwed. And they're not likely to address it if Ted doesn't take the lead.

Why the hell are Oregonians so flippin' timid?

[anne t.]

I agree Steve. Every two years as Oregon legislators approach a new budget cycle, the governor and legislators seem surprised that we don't have enough money and talk about the agonizing decisions they have to make about which essential service they will have to cut. How about changing the state tax structure?

Phil Knight just gave millions to OHSU for a cancer center which will have his name on it. People were praising him and I am thinking "When he starts paying fair taxes on NIKE earnings then I will celebrate." Until then Knight's charity and similar "gifts" from mega billionaires like Gates and Buffet do not impress me. This is chump change to them, and they get to control where it goes and how it gets used. I want the taxes and I want the public to decide. We don't need charity. We need justice and democracy.