Populism - Class Warfare

Commentary By Ron Beasley

The voters of my state, Oregon, did something they hadn't done since 1930 - they voted to increase income taxes.

It looks like Oregon corporations and high-income earners will pay
higher state taxes as voters weighed in Tuesday on two hotly debated
measures.

 The latest results indicate both Measure 66 and 67 passed in 11 of Oregon's 36 counties.

........

Measure 66 raises the income tax paid by households earning at or above
$250,000 a year or individual filers who make $125,000 or more. Measure
67 raises the state's $10 minimum corporate income tax.

As the LA Times reports this represents a shift:

Over the years, voters here have capped property taxes (saddling the
state with two-thirds the cost of running the schools) and passed a
constitutional amendment requiring rebates whenever tax receipts come
in 2% over budget. Nine times they have been asked to OK a sales tax --
and said no. Proposals to increase the state income tax? Down in flames
twice.

But now the Legislature is taking a tack that analysts
think could finally pull the rug out from under the tax revolt: soaking
the rich.

So what does it all mean?  Jonathan Singer:

After the Beltway elite read the results of the special Senate election in Massachusetts last week as an indication of conservatism on the rise, Oregon voters clarified the message: It's not conservatism, but rather populism that is on the rise.

The notoriously anti-tax voters in Oregon went to the polls this month to vote on measures that would firm up state finances by raising taxes on corporations and the wealthy. The state's fickle electorate had spurned countless tax measures in past years, and indeed had not approved an increase to the state's income tax since 1930.

......

The message out of Oregon, like the message out of Massachusetts, is
resonating: Voters are in a populist mood right now -- not an
anti-government one, necessarily, but a populist one nevertheless. The
progressive brand of populism that resonated with Oregonians this month
is slightly different than the one that rang true in Massachusetts. Yet
the message is just as clear.

The real question now is whether DC will listen, or if instead it will continue to cling to its common wisdom.

One real surprise here was the yes campaign outspent the no campaign.  Normally we would have expected millions of dollars from out of state.  With Oregon's history as an anti-tax state I think the special interests were caught off guard.  Oregon is a vote by mail state.  By the time those opposed to the tax increases realized they had a problem over half the votes had already been cast. Oregon's technology companies, including it's largest private employer, Intel, remained neutral.  While they might not want to pay the additional taxes they also need an educated work force and realized that cuts in education would hurt them.