Friday, July 23, 2004

Follower Of The Pack

As comforting as it is to read that Democratic gubernatorial candidate Christine Gregoire values the will of the people and opposes higher taxes, there is little in her history that gives this observer confidence that she actually adheres to either position.
At a debate Wednesday, the reigning attorney general, who would very much like to be governor, declared her opposition to a state income tax, basing her opposition upon simple inertia. The legislature doesn't have the courage to bring such tax reform before a skeptical populace. And Christine Gregoire certainly isn't going to risk her career by taking the lead. For the politician with ambitions that extend no further than personal advancement, it's safer to gauge public opinion and mold one's self to fit it. That certainly describes Christine Gregoire.
Both Christine Gregoire and her Democratic primary opponent Ron Sims declared themselves in favor of educated children, good health for all, a cornucopia of high paying jobs, along with clean water and fresh air. In doing so they starkly distinguished themselves from all politicians running for office who oppose such things. Where they did disagree was the issue of taxes. Ron Sims thinks that Washington's coffers need more money. Gregoire said that raising taxes would hobble a fragile economy. She's right of course. But as Sims pointed out, she supports more spending. Where's the money going to come from?
The King County executive professed his belief that Washington would be better off if it substituted some its current revenue stream with an income tax. There is really no good reason not to do so if there were a concomitant reduction in Washington's other taxes. Washington's over-reliance on its sales tax results in wild fluctuations in its revenue stream. And Washington's business and occupation tax, and its property taxes, contribute to its notoriously hostile business climate. Washington would be a better place if its property taxes and its business and occupation taxes were eliminated.
According to Sims, the state needs more cash. In his argument for increased education spending, Ron Sims declared, "You don't grow your economy with stupid, unskilled people." But, without a more favorable business environment, all that Washington's education system will do is turn out skilled workers for other states.
Gregoire has painted herself into the intellectually dishonest position by favoring much higher education spending (a popular position), while opposing higher taxes needed to fund her plans (another popular, but contradictory position). Sims succeeded in demonstrating that her mental Jello simply could not be nailed to the wall.
It's unfortunate that Ron Sims' one good idea will not come to fruition any time soon. Washington would benefit from a income tax, but not for the reason he delineated. He sees it as providing more money for him to spend should he become governor. But it would be much better to institute an income tax if it replaced Washington's far more onerous property and business and occupation taxes.
Republicans instinctively oppose the income tax, probably for the same reasons that Gregoire opposes it, for political expediency. But if they modified that position, they could make Washington a much better state.
Consumer spending fluctuates more wildly than income. Washington's current tax structure results in alternating periods of excess and famine. Unlike Joseph in Genesis, Washington's legislature has never managed to put the excess away for the lean times. As such, during the fat years, the legislature commits to new spending that it cannot sustain when the granaries go empty. An income tax would smooth that out.
Additionally, getting rid of the property and business and occupation taxes would yield a more hospitable environment for both business and property owners, particularly those wishing to retire in their own homes.
Sadly, Washington will continue to suffer under the governance of the personally ambitious rather than the courageous or the visionary. Washington will never enjoy meaningful tax reform until she elects politicians willing to place Washington's future ahead of their own ambitions.
An observation - Wasn't it interesting how quickly the mainstream press swallowed Sandy Berger's explanation that his underwear ate his homework, then got on to the real business of blaming Republicans for leaking details of the investigation? The New York Times best exemplified this bias. The original story was on page A-17. The story implying, without evidence, a Republican plot made the front page.


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