Worst is over for state (Oregon), says Kulongoski | The Oregonian

Worst is over for state, says Kulongoski
The governor notes Oregon's improving economy and political mood, points at progress and sets out initiatives

03/06/04
HARRY ESTEVE

Oregon has hit bottom and is on the rebound, Gov. Ted Kulongoski declared Friday in a speech aimed at boosting the hopes of a rattled state.

The wounded economy is healing, the once-sour political mood in Salem has mellowed, and state government has begun to repair damage wreaked by billion-dollar revenue shortfalls, he said in his second State of the State address.

"The worst is over," Kulongoski told a sold-out Portland City Club crowd in a downtown hotel ballroom. "Oregon really is strong and getting stronger."

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"Thank you, Ted, for the nice bedtime story". Now, let's get on to reality. The facts are that Oregon is in worse shape than it has been in decades. The voters recently turned down a huge income tax surcharge.

Unemployment is still much higher than the rest of the nation (together with Washington state). I believe we have the country's highest hunger rate.

Oregon is still seen as being unfriendly to business because we have prohibitive taxes and fees which discourage companies from moving here.

Most of my friends are struggling financially. Many have lost their jobs, or are afraid that they are the next to go. I'd say the Beaver State has a long way to go, yet.

I voted for him, but only because I didn't want that nitwit Kevin Mannix to be governor.

I'm jobless in Oregon for 15 months now.

However, I disagree with the whole "Oregon is unfriendly to business" meme. Which prohibitive taxes do we have that prevent businesses from locating here that other states don't have?

Last time I checked, PGE/Enron only paid $10 in corporate taxes. That's why we have Texas oilymen scrambling here to run it, right?

Don't fall for that one. That's Lars Larson talk.

Having lived in Oregon until July 2003, I know that the state absolutely pampers corporations when it comes to taxes--while levying a highly regressive personal income tax that hasn't been adjusted for inflation in years. Everyone earning above $10,000 a year pays the same rate.

That makes anti-tax feelings understandable, but what Lars Larsen and the rest of the shills for the robber barons conveniently neglect to mention is that corporations have not only enjoyed state tax reductions but have also benefited from Measure 5's property tax reductions to a far greater degree than homeowners have and have received local tax incentives to move plants and offices to local municipalities.

Besides, taxes have nothing to do with job creation. A corporation can already deduct wages and salaries--including the CEO's salary, whatever it is--from its pretax income. Hiring more people actually lowers a company's taxes. These cries for low taxes are all about creating more dividends for the wealthiest of the shareholders and bonuses for the executives, not about creating jobs for the masses.

Repeating claims made on talk radio or even on television or especially by David Reinhard is dangerous to your thought processes.

Oregon has gotten bad publicity around the country for its drastic school funding cuts and for its refusal to fund its university system to the levels that are typical of the rest of the region.

I'd like to add that Ted Kulongoski is a bland do-nothing. I made the mistake of voting for him in the primary because I thought he was "electable." I guess he was--but only barely.