| Oregon's Big Spenders
The Media's role: (late January email)
The Oregonian (1-29) advocates building a "rainy
day" fund exclusively by imposing of a new tax designed especially for
that purpose -- confiscating the
tax rebate ("kicker") due from overtaxing corporations doing business
in
Oregon. Thus the legislature will not have to suspend its practice
of spending
every last dime of the ample tax revenues available, even during this
time of
plenty. Next year the legislature will surely confiscate the kicker
rebate due
individual taxpayers, with the Oregonian's blessing.
What the Oregonian is not telling its readers is
that increasing state
spending at the twenty percent rate recommended by Governor Kulongoski
will double state spending in only one decade, and triple the size of our
state
government in just fourteen short years. Oregon taxpayers cannot possibly
afford to pay for this excessive state spending trajectory, forcing
the
legislature to spend any "rainy day" funds accumulated. So this entire
process
is an elaborate ruse, designed to indirectly spend taxpayer tax rebates
.
It is no wonder free-spending Oregon's near-junk
bond rating is among the three lowest states in the entire nation (as reported
in the Oregonian 1-18) -- ahead of only bankrupt California and Katrina-ravaged
Louisiana. The only
real solution to Oregon's fiscal problems is for the legislature to
reduce its
overly-high level of spending.
The People's Representatives: (early
February email)
Democrats now control Oregon's government in a time when
we have over a $2 billion extra dollars of income tax revenue, and our
leaders tell us there is no money to prudently set aside in a "rainy day"
fund to use when our booming economy cools?
Further, our Governor has proposed collecting even
more tax revenue
from Oregon citizens through a $150 million new tax on cigarettes,
a $80
million new tax on auto insurance, a $40 million increase in the corporate
minimum tax, and a $275 million tax repealing the corporate kicker refund.
Plus there are supposedly in the works a new $100 million tax on beer and
wine, and a new energy tax of $80 million. And yesterday the legislature
proposed enacting a new $800 million five percent sales tax on top of all
these other taxes. This adds up to over $1.5 billion in new taxes to
supplement the extra $2 billion already on hand, or $3.5 billion in
additional tax revenue to spend.
There will probably never be a better time to build
the $1 billion rainy day fund the Governor says Oregon desperately need.
Yet our political leaders
have not put forth a tangible plan to save enough tax revenue for even
a small part of this fund, other than by confiscating the tax refund due
corporations. Sadly, it appears our politicians will never voluntarily
restrain their habit of spending every last dollar available, and then
raising our taxes to spend even more. And Oregon taxpayers will be hard
pressed to dig their way out of the spending spree instituted by this Democrat-controlled
legislature.
Ross Smith
910 SW 68th
Lincoln City, OR 97367
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