As the Republican wave swept over the country, liberal enclaves on the West Coast and the Northeast held onto the Obama dream, at least a little while longer. No place more so than Oregon, where the makeup of the House & Senate members remained unchanged (4 Democrats/1 Republican in the House, 2 Democrat Senators), and where an ex-two term liberal governor was elected to the post again. Oregon hasn't had a Republican governor since the '80's.In January 2010, while the country was slipping into a deep recession and Tea Party mania was sweeping the land, Oregon stood strong and voted in favor of Measure 67, which according to Ballot Pedia:
increase(d) taxes in the state by $733 million through increasing the state’s corporate minimum tax, raising taxes on the state’s high-income individuals and raising income taxes on businesses.I don't recall the ballot measure, but I know that in 2009, as the state unemployment rate was skyrocketing, my own Multnomah County voted on a property tax hike to make sure the teachers got their 3% pay raise, even while everyone else was headed to the unemployment lines. Such is the perspective of most Oregonians that anything and everything must be done to keep the State government unions fully funded and in power.
Oregon's success in implimenting its socialist policies is reflected in its unemployment rate, which is a full 3% higher than the already way-too-high national average.
Now the Wall Street Journal has come out with an article showing how the taxation of the rich has led to a loss of tax income for the state, a result that will surprise no RTP&GGer (the link is to the TaxProf blog as you need a subscription to see the actual WSJ article):
Oregon raised its income tax on the richest 2% of its residents last year to fix its budget hole, but now the state treasury admits it collected nearly one-third less revenue than the bean counters projected. ...How could this socialist policy fail? Taxing the rich is the way to prosperity for all, right? As Obama said, "I think when you spread the wealth around, it’s good for everybody", and "I do think at a certain point you’ve made enough money". Well, that kind of deep, perceptive thought, that could only come from the Ivy League-educated, results in this:
In 2009 the state legislature raised the tax rate to 10.8% on joint-filer income of between $250,000 and $500,000, and to 11% on income above $500,000. Only New York City's rate is higher. Oregon's liberal voters ratified the tax increase on individuals and another on businesses in January of this year, no doubt feeling good about their "shared sacrifice."
Congratulations. Instead of $180 million collected last year from the new tax, the state received $130 million. ...
One reason revenues are so low is that about one-quarter of the rich tax filers seem to have gone missing. The state expected 38,000 Oregonians to pay the higher tax, but only 28,000 did. Funny how that always happens. These numbers are in line with a Cascade Policy Institute study, based on interstate migration patterns, predicting that the tax surcharge would lead to 80,000 fewer wealthy tax filers in Oregon over the next decade. ...Barack and you other socialists, maybe you should make sure you imprison the wealthy so they can't pick up and leave before you rape them of their hard-earned or easily-earned dough.
The sad thing is, the majority of Oregonians embrace these kinds of policies. Heavy sigh.
