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Speaker Chopp repeating unpleasant history?

By Bob Williams
Some House legislative leaders seem determined to repeat the mistakes of the past. Despite Governor Locke and a bipartisan Senate supporting a balanced budget without new taxes, House Democrat leaders seem determined to flaunt the will of voters, as well as economic and political history. They propose to increase state government spending by increasing the tax burden on Washington families and businesses. All of this during a recession. What part of the electoral house cleaning of the early 80s and 90s do they not remember?

Both parties have been swept from power following their support of tax increases during similar economic periods. The last time this occurred (in 1993), voters angrily responded by bouncing the Democrats out of power and by passing Initiative 601, which established spending and tax restrictions. Governor Locke was then Chairman of the House Appropriations Committee. This may account for his current lack of support for tax increases for anything except education.

While history reflects poorly on those trying to raise taxes, it shines brightly on measures undertaken by the Senate and Governor.

In the early 90s, many states were facing budget problems similar to those facing our state today. Governors who not only refused to raise taxes, but actually cut them, were rewarded when their state's economies recovered more quickly than other states. These governors, including John Engler (Michigan); George Pataki (New York); Frank Keating (Oklahoma); Zell Miller (Georgia); and Christine Whitman (New Jersey) also seized upon the opportunities that inevitably will arise in a time of crisis in order to institute much-needed reforms. All of them were rewarded with re-election or were elected to higher office.

Fiscal analyst Steve Moore, in an October 2002 study for the bipartisan American Legislative Exchange Council (ALEC), wrote, "In sum, the fiscal lessons of the 1990s confirm nearly two decades of academic research. State tax policies can have a profound impact on the relative economic performance of the states. States with low and falling tax burdens—especially falling income tax burdens—outperform states with high and rising tax burdens. Most importantly, however, states that attempt to balance their budgets with higher tax rates are likely to lose jobs and businesses and thus create even larger long-term structural deficits."

The Governor and Senate understand this. It is likely that some members of the House Democrat Caucus do as well. The question is: Will Speaker Chopp let them have their say and their way?

Chopp has before him two no-tax increase budgets (the Governor's and the Senate's). Four Senate Democrats have already seen the wisdom of supporting a no-tax-increase budget based on funding the core priorities of government first. Unfortunately many House Democrats seem unable to discern the difference between core priorities and other state funded programs. Do they all deserve spending increases? These Democrats seem willing to incur the wrath of voters to raise taxes to get the money!

Our state treasury's well has not run dry. Lawmakers have six percent more revenue to spend this budget cycle than last. If just a handful of House Democrats will break ranks to support a no-tax increase-budget, lawmakers could pass a balanced, responsible budget and go home for the year.

Or, Speaker Chopp and his allies can pursue raising business and household taxes, in which case voters may very well send the Democrats home for many years to come.

Bob Williams is president of the Evergreen Freedom Foundation, an Olympia-based policy research organization.

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org