Greg Anrig on why some states raised taxes during the recession: In July, Oregon's Democratic governor, Ted Kulongoski, and the state's Democratic legislature soaked the rich. They agreed on a budget that includes an income tax hike for married couples earning more than $250,000 a year and individuals making over $125,000. Corporations netting more than $250,000 annually also will pay higher taxes. At the same time, the Oregon legislature largely avoided the kind of draconian cuts to public services California approved at the insistence of its Republican governor, Arnold Schwarzenegger, even though Oregon has the second highest unemployment rate in the country and faced a huge budget gap of its own. The day after the legislature adjourned, Kulongoski said, "In a time when many states I know have gone backward, Oregon has the courage to look to the future. I will be the first to tell you I do not think Oregon is California." Still, the tax hikes could be challenged in a January statewide vote if 55,000 signatures are gathered by Sept. 25. If Oregon's voters were to reject the increases, as they have in the past for across-the-board income-tax surcharges, Kulongoski said, "I think there's a risk we're going to be like California." KEEP READING ...
