A NOVEMBER AGENDA Now that the primary is almost behind us, there is an organizing principle for the general election. This state's addiction to the lottery began in 1984, when voters passed an initiative whose campaign was financed by Scientific Games,
a company that manufactures
lottery tickets. One of the more encouraging developments of this year's primary election is that a small--but growing--number of legislative candidates are beginning to recognize one of the most gnawing problems facing the state: the outright unfairness of Oregon's current tax code. One of the most telling signs of a society's character is its tax system. The way we choose to tax ourselves speaks volumes about who we are and what we value. Slowly but surely, some candidates are concluding that Oregon's character--as expressed by its tax code--has become impoverished. CONSIDER: * Our income tax system mistreats the poor. According to the Washington, D.C., Center on Budget and Policy Priorities, Oregon has the 10th-highest rate of income tax for families of four below the poverty line. This is despite the recent adoption of a low-income tax credit. At the same time, Oregon is one of a handful of states that have a lower corporate income tax rate than personal income tax rate. * Our property tax system has locked in huge inequities. Thanks to Measure 50, which freezes the assessed value of property, officials are unable to redress the unfair differences in tax rates among similar properties. In a telling study done earlier this year, union analyst Tim Nesbitt found a number of Portland homes that sold within the same month for virtually the same price but were assessed--and therefore taxed--at wildly different levels. In July 1997, for example, a house on Northeast 38th Avenue and a house on North Michigan Street were both sold--one for $128,000, one for $126,000. Yet one house had an assessed value of $34,290, while the other had an assessed value of $115,000. Measure 50 locks this absurdity in place. * Oregon's residential taxpayers are carrying too much of the load. In the past decade, the tax burden has undergone a shift of historic proportions. Businesses and individuals used to pay equal shares of all state and local taxes. Today, for every dollar paid by individuals, businesses pay just 66 cents. As a consequence, according to the Institute on Taxation and Economic Policy, the share of state and local taxes that Oregon households pay is the fifth-highest in the country. Conversely, the share of state and local taxes paid by businesses--many of whom operate here but have headquarters out-of-state--ranks 43rd. * Our growing dependence on the lottery is an embarrassment. This newfound addiction is perhaps the most depressing expression of our character. This biennium, the lottery will contribute more than $730 million to our state general fund. This means that proceeds from gambling, paid disproportionately by the poor, now finance 10 percent of the activities of state government. How can Oregon's leaders be so complacent in the face of this mess? Slowly, a few officials are beginning to stir. If the November general election is to have any meaning, many more candidates for offices, including the presumptive governor-elect, will need to get religion as well. |
