Georgia, Oregon become economic test case
Ten years from now, it’ll be fascinating to look back and see who turned out to be right.
Across the country, falling tax revenues are forcing deep cuts in state budgets. Under Gov. Sonny Perdue’s proposed budget here in Georgia, for example, “per student state spending on k-12 education and the university system will fall to their lowest levels in a decade” after inflation, the Georgia Budget and Policy Institute reports.
Some states have tried to soften such blows with strategic tax increases that will raise a total of $24 billion in new revenue, according to the National Governors Association. But at a press conference Thursday, Georgia legislative leaders announced plans to slash rather than raise state revenue by cutting business fees and taxes and the state capital gains tax.
Asked about the impact on an already ravaged state treasury, state Rep. Tom Graves turned the question around: “We don’t see this as a cost to the state, we see this as a savings to the taxpayer.”
In Oregon, on the other hand, leaders are taking the exact opposite approach. They’ve already cut spending significantly, but this week, Oregon voters easily approved ballot measures that will increase taxes on business and on households with incomes higher than $250,000. The new revenue will close the remaining budget gap of $727 million and fend off further cuts in education and other public services.
That sets up an interesting test case. While Oregon raises taxes to preserve its public infrastructure and services, Georgia believes that it can stimulate a boom by offering investors a cheaper business environment. “We’re going to be the economic beacon and leader for the rest of the country” in recovering from this recession, Graves confidently predicted.
Today, median household incomes in Georgia ($50,861) and Oregon ($50,169) are quite similar. They start from a similar base on taxes as well, since Oregon voters have a tradition of fiscal conservatism equal to that of Georgia. In 2005, Oregon ranked 41st in per capita state taxes ($1,791) while Georgia ranked 42nd ($1,726), according to the Census Bureau. So it will be interesting to see where they stand in a decade.
Given Georgia’s already low tax structure and the condition of the national economy, I personally have a hard time believing that state taxes have been a significant hurdle to investment here. Dropping from 42nd to 44th or 45th in the tax rankings doesn’t seem like it will accomplish much except force more furloughs of teachers, but I guess we’ll wait and see.
This won’t be the first time that Georgia and Oregon have set themselves up as test cases. Beginning 15 to 20 years ago, the two states also took starkly divergent approaches to growth in their major urban areas.
Under Oregon law, the three-county Portland metro area was given the power to tax itself as a region for transportation. It has used that authority to commit to mass transit, investing in light rail, trolley lines and more recently commuter rail. That’s a stark contrast to the Georgia strategy, which has relied almost exclusively on highways and denied metro Atlanta the right to act as a region.
Wendell Cox, a highway advocate and a favorite transportation consultant for Georgia conservatives, argued in the Atlanta Constitution back in 1999 that the Georgia model would prevail. In fact, he predicted, “traffic congestion in Portland is likely to be worse than it is in Los Angeles by 2015.”
Well, it’s not 2015 yet. But when Cox wrote those words, Portland was 18th worst in the country in rush-hour delays per traveler; by 2007, it improved to 34th. Meanwhile, Los Angeles stayed at number one and Atlanta stayed at number three.
In the latest rankings, Portland has also improved significantly in the time-travel index, considered a standard measure of congestion. Again, Los Angeles and Atlanta didn’t budge.
Those trends have consequences on the quality of life a region can offer, a factor that in the modern world often has more impact on growth than low taxes. Quality of life has an especially strong appeal to the young college-educated people that high-paying employers need to prosper and innovate.
From 1995-2000, according to the Census Bureau, Atlanta was the fourth most attractive destination for that desired demographic. Portland was fifth.
Late last year, the Wall Street Journal took an updated look at what it called “the next hot youth magnets.” Portland was fourth; Atlanta didn’t make the list, and was mentioned only as another formerly ascendant Sun Belt city now in eclipse.
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466 comments Add your comment
Jenifer
January 29th, 2010
1:56 pm
TaxPayer,
No way was the dumba$$ Price going to come off as anything except, well, dumb.
TaxPayer
January 29th, 2010
1:56 pm
You best watch out Jay. I hear the Republicans are working on a new bunker buster.
Jenifer
January 29th, 2010
1:58 pm
“You best watch out Jay. I hear the Republicans are working on a new bunker buster.”
I’m ordering a case of screen cleaner today.
Whacks Eloquent
January 29th, 2010
2:00 pm
public education, defined by a former president. seems like it has worked pretty much as expected so far.
“We want one class of persons to have a liberal education, and we want another class of persons, a very much larger class of necessity in every society, to forgo the privilege of a liberal education and fit themselves to perform specific difficult manual tasks.”
— Woodrow Wilson
RW-(the original)
January 29th, 2010
2:01 pm
Jay B,
If you read what I said rather than what you wanted see you’d notice that my focus was on the fact that Obama voted for every bit of it so it’s disingenuous to claim it blind sided him.
Bosch
January 29th, 2010
2:02 pm
Jennifer,
If you order a case, I give you a didscount.
Paul
January 29th, 2010
2:02 pm
Taxpayer
Well, as I’ve said all along, I viewed the $N Billion fraud waste and abuse as a magic asterisk for CBO numbers to look good. I give Dems credit for targeting Advantage but not for taking the position that was all they had in mind – the numbers aren’t there. Dems may continue to take a hit on that as all many seniors remember is ‘you’re the guys who wanted to take my Medicare.” They’ve got some work to do to overcome that perception, which is why I think we saw two dozen Democratic senators vote against the President’s commission proposal.
This’ll be interesting, though. Cut through the chaff and there are areas where Obama’s more in line with Republicans than he is with significant elements of his own party.
Mick
January 29th, 2010
2:03 pm
**Thru no fault of their own, Im sure. At any rate…that issue is never gonna change so lets just keep tossing money down the toilet….ya!
I’m not assigning blame but what are we supposed to do – look the other way? I try not to envy those that were born on third base either.
TaxPayer
January 29th, 2010
2:04 pm
I don’t imagine anything like that has been done before; certainly George W. couldn’t have pulled it off…
Well, maybe if had held the meeting on a flight deck, in a jump suit…
Jenifer
January 29th, 2010
2:04 pm
“Jennifer,
If you order a case, I give you a didscount.”
Hey, thanks!
Outhouse GoKart
January 29th, 2010
2:05 pm
As long as this Obama-come-lately character doesnt mess things up too too bad and I keep getting my quarterly stock dividend checks then things will probably be…well…ok.
Normal
January 29th, 2010
2:05 pm
I’m sick and tired of being sick and tired, so I’m starting music early, because I just don’t care…
http://www.youtube.com/watch?v=EDFKphodBQI&feature=fvw
md
January 29th, 2010
2:07 pm
Barry seems to be trying, but he needs to talk to both sides of the isle.
I see this as a bigger problem:
“Yes, we wrote the bill, we won the election.” – Pelosi.
That kind of talk is what brings DC to its knees. She needs to realize that it wasn’t her party alone that put her in power.
And for all you younguns posting here, the last time we had a balanced budget, we had a republican congress and a democratic president, just so you know.
It takes usually works better when they work together.
Jenifer
January 29th, 2010
2:07 pm
“I don’t imagine anything like that has been done before; certainly George W. couldn’t have pulled it off…
Well, maybe if had held the meeting on a flight deck, in a jump suit…”
MISSION ACCOMPLISHED
Bosch
January 29th, 2010
2:08 pm
Normal,
That video starts out with a nice photo of RW!
RW-(the original)
January 29th, 2010
2:09 pm
Bosch,
Did I tell you I go some new windshield wipers? Now every time I get in the car I’ve got two Bosch’s staring me in the face.
Whacks Eloquent
January 29th, 2010
2:10 pm
Paul,
“This’ll be interesting, though. Cut through the chaff and there are areas where Obama’s more in line with Republicans than he is with significant elements of his own party.”
Right you are, the first party to actually recognize that this is essentially a centrist nation will be able to get a lot more done. But the extreme elements of both sides have the juicier sound bytes and dominate the sensationalist media. The guys (and ladies) who truly have the workable ideas get unnoticed…but this has been going on for a very long time. I wish I could hope it would change…
TaxPayer
January 29th, 2010
2:10 pm
If you order a case, I give you a didscount.
Sorry Bosch but I finally just broke down and slid my whole PC inside one of those clear trash bags. They’re a lot cheaper and you swap it out when spewed upon and get double duty out of it by using it as a trash bag, like it was originally intended for. Oops. I hope my full and transparent disclosure does not have any negative impact on screen cleaner sales. My bad, dude.
Bosch
January 29th, 2010
2:11 pm
RW,
No, you didn’t mention that – so now every time it rains you can think of me and how my fine products are saving you. How pleasant a thought.
Outhouse GoKart
January 29th, 2010
2:12 pm
Normal
January 29th, 2010
2:05 pm
YOU GO GIRL!! UH HUH!
TaxPayer
January 29th, 2010
2:13 pm
Did I tell you I go some new windshield wipers? Now every time I get in the car I’ve got two Bosch’s staring me in the face.
By the way, you cannot install both of them on the right. It takes a left and a right to work properly.
Whacks Eloquent
January 29th, 2010
2:13 pm
md,
“And for all you younguns posting here, the last time we had a balanced budget, we had a republican congress and a democratic president, just so you know.”
here is for hoping that history repeats itself again, I remember being quite impressed by Clinton at that point. Too bad his personal life came to dominate headlines, it was really blown out of proportions. Oops, probably not the best choice of words! Bygones…
Jenifer
January 29th, 2010
2:14 pm
“Sorry Bosch but I finally just broke down and slid my whole PC inside one of those clear trash bags. They’re a lot cheaper and you swap it out when spewed upon and get double duty out of it by using it as a trash bag, like it was originally intended for. Oops. I hope my full and transparent disclosure does not have any negative impact on screen cleaner sales. My bad, dude.”
Hey, there’s a thought! Cancel my order, Bosch.
Whacks Eloquent
January 29th, 2010
2:16 pm
“By the way, you cannot install both of them on the right. It takes a left and a right to work properly.”
What does it mean if a certain German car has only one in the middle? I thought we took care of that problem about 65 years ago!
Bosch
January 29th, 2010
2:18 pm
Taxpayer,
No worries – as you can see, my income is supplmented quite well with sales of my other fine products.
Bosch
January 29th, 2010
2:19 pm
Jennifer,
Well, FINE then.
md
January 29th, 2010
2:20 pm
” I remember being quite impressed by Clinton at that point.”
I was quite impressed by all, as they knew they needed to get it done and did. Now, its like Barry said, an ongoing election. They aren’t worried about us, they are worried about them.
Maybe its time for an amendment that puts equal numbers from each party in congress and if they don’t play nice then send them home.
Jenifer
January 29th, 2010
2:21 pm
“Jennifer,
Well, FINE then.”
Did I tell you I have your refrigerator? It works great! I’m saving up for the range.
Bosch
January 29th, 2010
2:24 pm
Jennifer,
Oh, well okay then. Sorry for the tantrum – the range is great! I’m telling you – it runs like a dream.
Paul
January 29th, 2010
2:25 pm
hey getalife
You struck out with Prejean, maybe you’ll have better luck with Rielle?
“Bid To Quash John Edwards Sex Tape
Politician’s ex-mistress gets restraining order over “personal video” ”
http://www.thesmokinggun.com/archive/years/2010/0129102rielle1.html
If there was any doubt Edwards was a couple bricks shy of a full load…..
Bosch
January 29th, 2010
2:26 pm
Paul @ 2:25 –
That’s just plain ewwwwwww.
Paul
January 29th, 2010
2:29 pm
“House Democrats don’t trust Senate Democrats, House Majority Whip James Clyburn (D-S.C.) said late this week….
“”I think what has happened to us is that Democrats have been defined by what the public sees going on in the Senate,” Clyburn said. “People keep acting as if we don’t exist. The House members passed a comprehensive healthcare bill that was very popular with the American people .”"
House Democratic leadership still doesn’t get it.
http://thehill.com/blogs/blog-briefing-room/news/78719-clyburn-house-dems-do-not-trust-the-senate
Whacks Eloquent
January 29th, 2010
2:29 pm
Did y’all hear that atheists are upset that the Postal Service will soon have a Mother Teresa stamp out?
Paul
January 29th, 2010
2:32 pm
Bosch
No kidding. Even reading that I wanted to go bathe in bleach.
Paul
January 29th, 2010
2:33 pm
Bosch
SmokingGun has a copy they claim is the real deal. As proof they point to the hairdresser who keeps popping on camera with a can of hair spray -
Bosch
January 29th, 2010
2:34 pm
Paul,
Can I borrow the bleach to burn that image out of my brain?
Matilda
January 29th, 2010
2:35 pm
Jenifer, Tom Price has not yet posted praises to himself on his facebook page for today’s question, but the sycophants are already on it.
getalife
January 29th, 2010
2:36 pm
“You struck out with Prejean, maybe you’ll have better luck with Rielle?”
Saw her on TMZ with her tit hanging out.
She’s a freak!
Paul
January 29th, 2010
2:36 pm
Bosch
Sure! I’ll even FedEx ya’ some -
Paul
January 29th, 2010
2:40 pm
getalife
I just don’t understand what happens to some people when they get that high up the ladder.
I read an account of Stephanopoulos that ratcheted up my respect meter. Seems when he first saw Monica making the rounds he called over an assistant and all he said was “keep that woman away from me.”
getalife
January 29th, 2010
2:40 pm
Well, if I had a blond following me with a video camera, they would probably be a sex tape if she is willing.
Just sayin.
Outhouse GoKart
January 29th, 2010
2:45 pm
“Did y’all hear that atheists are upset that the Postal Service will soon have a Mother Teresa stamp out?”
Ive heard Podiatrists are also a upset.
Bosch
January 29th, 2010
2:46 pm
Paul,
I have to pick myself off up the floor first – I don’t think I can move.
Paul
January 29th, 2010
2:46 pm
BOSCH
MORE BLEACH!!!
Bosch
January 29th, 2010
2:49 pm
Well, looky there, them Blog Gods done gone and switch mine and Paul’s comments!
TaxPayer
January 29th, 2010
2:51 pm
Sometimes I feel as though I need to read the posts in reverse.
Mick
January 29th, 2010
2:57 pm
**Sometimes I feel as though I need to read the posts in reverse.**
At least you get it.
Mick
January 29th, 2010
2:59 pm
md
Bill Clinton worked well with a republican congress and what did he get for it? Impeached.
Lesson learned.
Whacks Eloquent
January 29th, 2010
3:02 pm
**Sometimes I feel as though I need to read the posts in reverse.**
You know what happens when you do that?
Republicans admit the Iraq war was wrong, Democrats say W really wasn’t the worst president, and sorry Paul but you are dead!
Whacks Eloquent
January 29th, 2010
3:05 pm
Mick @ 2:59,
Clinton got impeached (I thought it was stupid, still do) over his deceitful denial of extra-curricular activities. I always thought he should just have come clean. D’oh, another poor choice of words!
Luckily they did not have enough power to actually remove him from office.
Number1ninja
January 29th, 2010
3:06 pm
Clinton didn’t lie, the republicans trying to nail him were too stupid to ask the right questions so Slick Willy did his thing and laughed all the way home. Serves them right for wasting everybody’s time and money.
TaxPayer
January 29th, 2010
3:07 pm
And Bill Clinton led an effort to impeach Newt Gingrich… .
stands for decibels
January 29th, 2010
3:07 pm
If you’re interested in an actual transcript of the President-GOP get-together:
http://projects.washingtonpost.com/obama-speeches/speech/173/
Bosch
January 29th, 2010
3:09 pm
Whacks,
I always thought Clinton should have gone, “Yeah, I did her – what’s it to ya? Yeah, it was, eh, okay, ya’ wanna know all the details?” Ya’ know, kind of the Silvio Berlusconi route.
getalife
January 29th, 2010
3:11 pm
Fox cut it off early because Obama was refuting their talking points.
Whacks Eloquent
January 29th, 2010
3:11 pm
Bosch,
I think we found out more about it than we really wanted to anyway. ewwww
TaxPayer
January 29th, 2010
3:15 pm
Perhaps a little Reflection.
Mick
January 29th, 2010
3:16 pm
Whacks Eloquent
No sense goin down that road again.
Doggone/GA
January 29th, 2010
3:18 pm
“Luckily they did not have enough power to actually remove him from office”
They had the power, what they didn’t have was evidence of a “crime” bad enough to meet the legal requirement for a guilty verdict.
Jenifer
January 29th, 2010
3:20 pm
Obama Calls Out GOP Hypocrisy For ‘Going To Ribbon Cuttings For The Same Projects That You Voted Against.’
The only grown up in the room spanked the entire crowd of wingnuts.
http://thinkprogress.org/2010/01/29/obama-ribbon-cutting/
Mick
January 29th, 2010
3:24 pm
Notice how it all worked out in the end? Johnson impeached, Nixon would have been impeached, Cinton impeached, three times in history. W should have been impeached but there was no way anybody could put up with back to back impeachment. Besides, pelosi who the repubs hate like no tomorrow said its off the table – good grief.
md
January 29th, 2010
3:37 pm
“Bill Clinton worked well with a republican congress and what did he get for it? Impeached.”
Sorry Mick, I’m a believer in consequences – not excuses.
Bill should have put his hand in the air and said “I did it” and took his lumps, or better yet don’t do it at all. I’ll not lay blame on another party for the actions of others.
Midori
January 29th, 2010
3:41 pm
winter storm headed this way!!
Kamchak
January 29th, 2010
3:48 pm
Midori
Already got an inch on the deck.
Whacks Eloquent
January 29th, 2010
3:51 pm
yeah I am actually contemplating listening to Hannity this afternoon, so that I can get kirk mellish’s updates…
Midori
January 29th, 2010
3:59 pm
wow, Kammie!! an inch??