Well, election day is soon here, and once again I am amazed at the total lack of good candidates on the ballot. Oregon’s governor Kitzhaber is due to leave office in January (thank God, it’s about time!) and we have our choice of two idiots to succeed him. Knowing that Oregon is going through major financial woes, I can see that regardless of who makes it to the governor’s mansion, within two years, Oregonians will once again have to vote on a proposed sales tax. These people think that the previous nine times of trying (and failing miserably) to get their sales tax mean nothing. I enjoy not having a sales tax. Yet, despite this nice liberty, Oregon also has one of the highest tax rates of all in this great nation. I’ve thought long and hard about the possibilities of a sales tax making it, and here is what I’ve come up with, a series of conditions if you will. These are the only conditions in which I would consider voting for a sales tax. All others earn a swift and resounding “NO!”
1. If a sales tax were to have any chance of approval, it would have to replace a different tax. I prefer to see the income tax totally, permanently and irrevocably gone, never again to rear its ugly head in this state. Why not kill the property tax, some would ask. Easy answer. Property tax is collected by the individual counties and mostly used for local issues, such as public safety, schools, etc. Income tax is collected and administered by the state government. Since a sales tax would also be collected and administered by the state, it makes sense for the current revenue department to shift gears from income to sales tax administration. This would minimize the impact of job losses and would also keep each county from having to set up new departments. In this age of electronic banking and fund transfers, the collection of sales taxes would be relatively easy if all of it was directed to a single collection point. As with the income tax, money would be received in a steady stream on a daily or weekly basis.
2. The tax rate, not to exceed 5 percent could be changed only if a majority of voters approved an increase. Naturally, the laws in effect that govern tax approvals and increases apply, meaning that a majority of 50 percent of the registered electorate must approve. For example, if 10,000 people are registered to vote and only 4,800 vote, even if all 4,800 vote yes, the proposal fails because less than 50 percent of the electorate voted. The legislature and governor will have absolutely no option to tamper with the tax rate or rules associated with it.
3. Cities, counties and any other organizations would be prevented from adding a “local” sales tax on top of the state tax. These groups already collect enough of our hard-earned money. They don’t need to start a money grab and boost their coffers. They will most likely spend it as fast as they collect it anyway, so why give it to them? I’m sure the citizens of this state can think of better ways to use that money themselves.
4. Certain items will be exempt from the tax. Food, energy (electricity, natural gas, etc), motor fuel (gasoline, diesel, etc), large durable items (cars, houses, etc) and medical services will not be taxed. Questions? Why not tax gasoline? We already pay 24 cents for every gallon of fuel sold to the state. Right now, that’s about an 18 percent tax rate. I personally think that’s high enough. Why exempt large items? All housing and decent cars are already expensive enough. Why place their purchase farther out of reach of the average tax-paying citizen? Food is an obvious. Go ahead and tax restaurant purchases. Eating out is not a necessity most of the time. Feeding your family is. Doctors and hospitals are also expensive, especially if you do not have medical insurance (and even if you do, sometimes). Prescription medications are also exempt, for the same reason.
5. Since every state around us happens to have a sales tax, there won’t be an option for visitors to this state to avoid paying the tax. A 5 percent rate will be lower than the rate of every other state surrounding Oregon. I’m sure visitors to this state will not mind paying less than they would at home.
6. These provisions would have to be permanent as long as the sales tax would be in effect. That would mean forever, since these things have a habit of never going away once they are in place. Any elected or non-elected official who attempts to tamper with or change these provisions will be arrested, tried for treason and caned on the capital lawn before being forced to resign their position to someone else. This may sound harsh, but I am sick and tired of our government trying to steal another buck from us taxpayers every chance they get. There needs to be a penalty for trying to change the system without going through the right process.
7. As a side note, killing the income tax will also kill the kicker rebate that our governor and legislature have so long reviled. (For those less familiar, the kicker works like this: If the state collects more money than the budget spends by more than 2 percent, the overage is returned to the taxpayers. This law was passed some years ago and has been the thorn in the side of our government since. They have tried every time to keep the money, but eventually have given it back. I always thought if they actually kept the money, the whole lot of them should be tried and imprisoned for theft. It isn’t their money.) I’m sure they will accept the sad passing of this fiscally responsible law with all the hypocritical grief and words they can muster for the television cameras.
I suppose there would be some other caveats to consider, but these are the points that would allow me to consider a yes vote. I don’t see Oregonians approving a sales tax, but I feel my ideas would at least give it a fighting chance. In my situation, I would come out ahead at the end of the year. I generally pay about $1800 per year in income tax. If that 5 percent sales tax were in effect, I would have to spend $36,000 per year on taxable items to make up the difference. I know there are many who make considerably less than I do who would also benefit from this plan. I am well aware that there are many who make more than I do, and they will obviously contribute their portion. Also, visitors to this state will have an opportunity to give some of their dollars for our benefit, much as we do when we visit other states.
As much as a sales tax turns
my stomach, it may be what Oregon needs to help meet financial needs.
Killing the income tax would make it an easier thing for me to accept.
I would still hate it, but maybe it’s the best of a bunch of crummy options.
Any political candidates listening?