I would love to come back to my State Street column and tell you that things are alive and well in Salem and legislators, irrespective of background, geographic location, age, or political party affiliation are working side by side to overcome Oregon's economic crisis. But that would be a lie.
Gridlock for rent - 50 cents
At this moment the Oregon Legislature is hopelessly gridlocked in two camps: those who believe the entire deficit should be erased through cuts, and those who believe it should come from some cuts and some new taxes. The taxes being kicked around are on cigarettes (.50/pack) and beer and wine (.05/glass).
According to Confucius, "The superior man understands what is right; the inferior man understands what will sell." Given past elections and the current decisions to come out of Salem, what one would believe would sell is "no new taxes." However, in a recent poll conducted by Davis, Hibbitts, and McCaig, only 35 percent of Oregon voters think we should eliminate the budget deficit by cutting programs without raising taxes of any kind. Fifty-four percent think it should be eliminated by a combination of budget cuts and some tax increases.
Term limit resuscitation
Speaker of the House Mark Simmons (R-Elgin), who recently had life breathed back into him when the courts overturned term limits, said he could not support a 50-cent tax hike on a pack of cigarettes because it would unduly "hurt the poor." Forget the statistics about who pays for those who smoke when it comes to health insurance and that this tax would primarily affect teens. Forget that Oregon is sandwiched between two states that have such a tax. Forget that of those who were polled, a whopping 68 percent favor such a tax. Forget that Simmons received $6,000 in his last campaign from the tobacco industry. What's important to remember is while pretending to protect this illusive voting block, Simmons and other Republicans will have to slash health and human services, education, and OSP just so they can say they voted against any tax hikes come election time.
Bottom of the tax barrel
What about increasing taxes on beer and wine?
Nationally, Oregon is next to the bottom for beer and wine taxes and, as drafted, this tax would only affect those who manufacture more than 200,000 barrels per year, thereby excluding all of Oregon's wineries and distilleries. It turns out with this tax, that what is right is also what will sell: 71 percent of Oregonians polled support this idea, especially if it were dedicated to preventing cuts in drug abuse prevention and mental health programs. However, it is getting no play by the Republican majority. (To find out why, visit oregonfollowthemoney.org and see who received what from the beer and wine industry.)
Regardless of what polled voters may want, Republicans are saying no to both of these taxes, because, prior to the special session, many of them signed onto the "No new taxes pledge" that Portland radio talk show host Lars Larson uses daily to flog legislators who will not sign.
According to Lars, we pay the "highest taxes per capita in the United States." It must be true because he said it on the radio. What Lars isn't sharing or (more likely doesn't understand) is that Oregon, thanks to Measure 5, is now almost completely dependent on the state income tax. And that tax is very high. But state and local taxes as a share of personal income puts Oregonians in 46th place according the Oregon Center for Public Policy (
www.ocpp. org). Far from the number one slot.
A party not to attend
What about the Common School Fund? Established 143 years ago when Oregon became a state, the Common School Fund was implemented through revenues generated from leases on state-held land, harbors and waterways, and unclaimed property.
Designed to ensure that public education would always be funded, each year it funnels millions of dollars into the public school system. Of those polled statewide, 58 percent do not think we should raid this fund and 65 percent believe that it would be better to increase taxes over cuts in schools, healthcare, transportation, and public safety programs. That Democrats want to stay away from taking extra money from this fund is inspiring; to do so would mean greater disparity in future budgets.
Are there savings within government programs? Absolutely. No one is discussing privatization of distilled sprits to eliminate the $77 million OLCC budget nor are they considering selling the OLCC portfolio to increase funds. No one is looking at how state programs, such as those for the blind, come out of inefficient agencies and that the private sector is providing identical services for less money. Unfortunately, both sides are immobilized not knowing what could blow up as a campaign issue and thereby holding or throwing their party in the minority.
John Adams, who was deeply opposed to political parties, understood that factions in government ultimately could "tie the hands and destroy the influence of every honest man with a desire to serve the public good." The Oregon Legislature is a visual aide - a living museum, if you will - of how party politics can destroy a state.
Cathy Shaw is chief of staff for Rep. Alan Bates, D-Ashland; an author; and the former three-term mayor of Ashland.
By Cathy Shaw
