Oregon GOP Bait and Switch

The GOP in Oregon is something of a joke, so it's no surprise that their shining light, Rep. Bruce Hanna (who I believe Coyote has already tapped for DeFazio's seat) cannot get through an entire editorial without revealing how completely bankrupt the Republican party is these days.

You may be surprised to find that the Oregon GOP opposes increases in government spending as a solution to the recession. Nope, they've got a better plan.

We must create an environment where businesses can succeed, create new family wage [sic] jobs and lead Oregon to economic recovery.

Prosperity can’t be manufactured in Salem. Prosperity is possible only when Oregonians can support their local small businesses and participate in their community’s economic success.

How is the GOP going to accomplish this goal? Well first, Bruce tells you how they are not going to do it.

Our plan doesn’t raise your taxes and fees, and doesn’t increase pork barrel spending on more “bridges to nowhere.” It won’t saddle your children and grandchildren with billions of dollars in new government debt, and it doesn’t depend on yet another taxpayer-funded government bailout.

In other words, the Oregon GOP's plan is emphatically not a plan that contravenes Oregon's constitutional balanced budget mandate, provide for the building of bridges in Alaska (let's hope that the bridge over I-5 in Eugene is deemed to be going somewhere because it would really be awesome if that was finished sometime), or bailout anything. In other words, the Oregon GOP will not pretend that it is the House of Representatives in DC. Thank God.

But how will the Oregon GOP revive this once glorious state? Not with higher taxes, they can tell you that right now. In fact, taxes must come down. For you. The low-income worker.

Our plan starts by reforming an income tax system that unfairly penalizes low-income Oregonians who work hard every day for their paychecks. Under the state’s marginal tax structure, a worker making $10 an hour pays the same tax rate as someone making $80 an hour. As a result, lower-paid workers must first give a larger share of their income to the state before meeting their own basic needs. By reforming income tax brackets, we can allow many struggling Oregonians to keep more of what they earn and give them more purchasing power in the economy.

Boom! We're done right there. Lower taxes for the working poor. You and I keep our hard earned money, spend it at the Bi-Mart, and we all go away winners. Lower taxes will necessarily mean less money for the state government, but I'm sure there is some fat we can trim somewhere. (Actually Hanna leaves the issue of decreased revenue completely undiscussed. The "fat" argument is mine. If you'd like, feel free to substitute in a rant about teacher's salaries, welfare cheats, and/or SEIU. Hell, you can even contravene all evidence fomr the past eight years and argue that lower taxes leads to increased tax revenue. I am sure Bruce would approve.)

How much of a tax cut will I be getting Bruce? Unstated. But wait! There's more! Heaven forbid the GOP stop at unexplained tax cuts for the working poor, there's more taxes that need a-cutting. But first, let's stop to think about the children.

House Republicans understand that Oregon families are struggling to make ends meet. Rather than asking families to send more of their dollars to government, we propose giving them greater relief by increasing the state’s child tax credit. This measure will help many Oregonians cope with the rising costs of maintaining a home and securing a better future for their children.

That's right, under the GOP plan, the state will pay you to have children, but it won't pay to educate them. I love the vacuousness of that last phrase. "Securing a better future for their children." How the fuck does an extra $100 (guessing!) per child help me secure their future? Am I supposed to sock that away in a college fund or something? Actually, I think I'm supposed to spend it. Possibly at the Bi-Mart. I'd also like to note that despite the GOP's deep, deep concern for working families, everyone would get this credit, regardless of income.

But let's get to the nitty-gritty, shall we? What does any state need to succeed? Capital, of course. And retaining the capital it has should be a number one priority. Capital retention is achieved through lowering the estate and capital gains taxes.

Now, you may be saying to yourself, "Dave3544, I have taken basic economic theory. I have taken advanced economic theory. I have read my Marx and I have read my Friedman. That shit don't make no sense. How the hell can lowering taxes on wealthy individuals keep money in the state of Oregon? Where was this taxed money going, if not into the coffers of the state of Oregon? Didn't those tax dollars get distributed to Oregonians in the form of salaries, safety net support, construction jobs, etc.? Didn't that money make it's way into the hands of hard-working Oregonians who eventually, surely spent it at Bi-Mart?" Don't ask me, ask Bruce Hanna.

With the current financial crisis, Oregon needs to keep as much capital within the state as it can. Oregon must help private sector industries succeed by reforming the state’s estate tax and capital gains tax rate, among the highest in the nation. Under the current system, Oregon can’t compete with the dozens of states that have strategically kept these taxes low to attract and retain businesses and encourage reinvestment.

The state’s high estate tax and capital gains tax rate affects everyone, from working families to middle class investors to large corporations. As securities and real estate markets begin a long and slow recovery process, Oregon should make every effort attract and retain capital. This will promote private investments to enable business to expand and create more family wage jobs.

You might also want to note that out of the 50 or so states in the US, "dozens" out perform Oregon, according to Hanna. Others disagree. But, of course, the main point is that this more of the same tired bullshit form the Oregon GOP. Apparently, the working-class people need to get on board with tax cuts for the rich so that they can get about the important work of creating jobs for the slobs. I feel like I have a very bad case of deja vu. Well not deja vu because that can be interesting and is (possibly) indicative of a glitch in the Matrix, this shit is just tired.

Does Rep. Hanna really think that Country Coach is laying off people left and right because the taxes on its owners and investors are too high? How much would we need to cut those taxes so that they don't shut their doors? Hynix layed off 1400 people. We slashed the hell out of their taxes. Freightliner shutting down in Portland was a killer; maybe if the estate tax was lower that wouldn't have happened. On the smaller business front, a restaurant in Eugene is closing and more are on the way. Too bad you didn't speak up sooner, or you could have cut the capital gains taxes enough to keep the customers flowing. Maybe we can get some sort of "eating out" tax credit in the works.

So Rep. Hanna starts out promising help for Oregon's working families and ends by giving us tax breaks for the wealthy. No surprise there I guess. I'm just glad to know that, with this kind of thinking, we can look forward to keeping the Oregon GOP in the minority for a very long time.