Tax and Budget Reform

Last Tuesday, Oregonians overwhelmingly approved two ballot initiatives that ratified legislative action last year to increase high-end personal income and corporate taxes.  The failure of the anti-tax movement in Oregon is one more in a long stream of right-wing initiatives rejected by voters at the ballot box.  In fact, progressive revenue generation as part of a balanced approach to addressing state deficits has been popular with both voters and legislatures for years.  This Dispatch will provide both the facts and messages to debunk opposition to smart revenue options, while outlining a few of the best revenue approaches to filling budget holes.

Portending a sharp increase in corporate political spending, the Supreme Court has ruled (Citizens United v. FEC) that corporations enjoy the same speech rights of citizens when it comes to advocating the election or defeating political candidates. Elected officials, including U.S. President Barack Obama, have denounced the ruling as striking at the heart of our democracy by putting corporations on an equal footing with real people when it comes to basic constitutional rights.

Gridlock.  Slow fulfillment of promises of change in D.C.  A health care bill so compromised that even supporters are unhappy with many details. Frustration with D.C. seemed to be the clearest message from Massachusetts voters on Tuesday. But what can we expect other than gridlock and resistance when a 59-seat super-majority in the U.S. Senate is insufficient to pass serious legislation?  Or when monied interests in D.C. buy off support to block serious reforms on financial regulations, health care and climate change legislation? This is why bold, progressive leadership in the states matters. 

In a meeting with Texas officials last week, Kevin Concannon, Under Secretary of Food, Nutrition, and Consumer Services at the United States Department of Agriculture (USDA), claimed that there had been a drastic reduction in the timeliness and accuracy of food stamp provisions in the state following the implementation of a privatized system.  In fact, Texas now has the worst performing food stamp program in the entire country.

As this Dispatch will highlight, the first step is to fund jobs that support long-term economic competitiveness, notably by investing in people and physical infrastructure.  While the economic climate for profit-making business opportunities is more limited, investments in education, health care, transit and energy efficiency can create immediate jobs while strengthening building blocks for long-term growth.

In 2009, Oregon lawmakers approved HB 2649 and HB 3405, a balanced approach to dealing with their fiscal problems that included increased taxes on the wealthiest state residents and corporations.  These revenue increases were combined with lowered taxes for people receiving unemployment insurance benefits, offering tax relief to many families. 

With the new year, Progressive States Network is working with allies to launch a campaign to demand a new, federal job creation plan that includes fiscal relief to state and local governments in order to foster economic growth and create and maintain jobs. We are asking state legislators to sign onto a letter to promote this job creation plan, the full text of which can be seen at www.progressivestates.org/jobcreation. Legislators can sign the letter at www.progressivestates.org/jobcreation or by emailing jobcreation@progressivestates.org. 

On Tuesday, December 8th, President Barack Obama delivered an address to the Brookings Institution on the need for increased focus on the job crisis that is affecting so many working families across the country. 

As part of the Progressive States Network’s 2010 Shared Multi-State Agenda, we are advancing a corporate transparency initiative in coordination with key allies and experts.  Demand for transparency in government is rising, but most states still do not collect even the most basic, critical data from recipients of state grants, state contracts or tax breaks.  In this Dispatch, we will examine the need for corporate transparency, recent cases relating to the subject, and how the policy will benefit states dealing with massive deficits.

While the governors' races in New Jersey and Virginia got most of the headlines, other state races around the country delivered a mixed message by voters on a number of issues. Read more about anti-tax forces continue to fail at the ballot box, a split vote on gay and lesbian unions, how voters continue to support public investments, and more.