On Election Day, being careful about our decisions is always a good idea. But as a fiscally conservative Republican and former Oregon Attorney General, there are some things I believe call for particularly careful scrutiny:
* Money
* Fairness
* Changing our Constitution
* The future of our state.
Those are just four of the reasons Oregon should look carefully at Measures 8 and 91, and then vote a resounding no.
I’ll start with Measure 91. This measure offers individuals and corporations unlimited deductibility of their federal taxes from their state taxes. It sounds great — more money for taxpayers, right?
But most Oregonians won’t see a dime if Measure 91 passes. Because it would cancel the kicker next year, the majority of Oregonians would experience what amounts to a tax increase. The state Legislative Revenue Office reports that a typical family of four earning $81,000 would merely break even; typical families earning less would actually lose money.
Yet this is a $2 billion tax break. Who benefits? The top six percent of individuals enjoy a whopping 69 percent of the personal income tax benefit.
The $2 billion hit represents almost 20 percent of the state’s general fund, which supports health care, public safety and other vital services — including Oregon’s public colleges and universities. Not only is that the soul of unfairness, it is a direct hit to our ability to invest in our future.
And then there is Measure 8. Although it is advertised as a limit on government, it is written in a way that simply makes no sense for Oregon taxpayers.
The limit of Measure 8 covers far more than the spending of our state tax dollars. It also covers state spending of federal matching funds and grants, and dedicated fees that people willingly pay for services. And it would cut $5 billion in the next budget alone.
Measure 8 could force us to send back billions of dollars in federal funding that is rightfully ours and pays for things like transportation and services to seniors — and it wouldn’t even lower our taxes.
As a matter of fact, Measure 8 would actually remove the incentive for government to find ways to pay for services without relying as much on taxes. For example, universities could not raise tuition or accept donations to offset cuts, because any extra funds that come in would be counted against the limit.
Neither of these measures is really what it seems. They are unfair to most taxpayers. They are filled with unintended consequences that would be locked into our Constitution. And they will harm our economy, our state and our future. That is why an unprecedented coalition has formed to oppose these measures: Republicans and Democrats, business and labor, teachers and parents, seniors and Oregonians from every walk of life, from every corner of the state.
Tax reform and reasonable limits on government? I’d love to see them. But Measures 8 and 91 don’t even come close. Please join me in voting no.