Raising Taxes in a Down Economy

In this morning's column, I write about Idaho's attempts to capitalize on the Oregon tax vote.

Some left-leaning think tanks contend that tax increases will have the happy effect of stimulating economic growth. Oregonians may just have made their case for them. The Beaver State’s recent vote to boost taxes on business and the wealthy may well deliver a much-needed jolt … to the Idaho economy.

Idaho Statesman columnist Dan Popkey writes this week that Gov. Butch Otter is hard at work. He quotes Otter as seeking “incentives for folks to take flight from Oregon and come over here, because we’re getting a lot of phone calls about their tax increase.”

The state’s economic development office, Popkey reports, is developing strategies for luring businesses from Washington, Oregon, and California — Western states with higher taxes and aggressive business regulation. 

The Seattle Times again objects to the tax increases proposed by the governor, Senate Democrats, and the still-unreleased House Democratic plan. 

The affronts to taxpayers' sensibilities and their wallets were billowing out of the state Capitol Tuesday as legislative leaders released their proposed budgets with audacious revenue increases — the Senate would raise taxes by $918 million, including a boost in the sales tax, and the House by $857 million.

Last week, Gov. Chris Gregoire was a little more restrained, proposing about $605 million in new tax increases — still twice what this page feels is prudent while taxpayers struggle.

The Times also carries this example of the raise taxes to grow jobs argument.

And, in case you missed it, stories in the Olympian and Puget Sound Business Jounral discuss the Senate tax plans. 

Finally, see this Washington Research Council analysis of Gov. Gregoire's tax plan.