Every state likes to say itÕs No. 1 in something. California has the most people. Alaska has the largest land area. Maryland has the highest median household income.
And Oregon? In what regard are we No. 1? The Beaver State has a chance — a good chance — to push one of our perennial specialties, unemployment, right to the top of the national heap. At 12.1 percent, OregonÕs March unemployment rate was higher than any other stateÕs February unemployment rate.
Michigan got the unemployment gold last month with a rate of 12 percent, but Oregon was at least on the podium. Our rate then, 10.8 percent, was in the bronze position, with South Carolina (11 percent) one step ahead. But look out, weÕre gaining fast.
The Bureau of Labor Statistics hasnÕt released state-by-state data for March yet, but — dare we say it? — Oregon might soon become National Unemployment Champion. Moreover, we stand to accomplish this feat even without the benefit of an obvious performance-enhancing industry like, oh, auto manufacturing.
But our rise to the top isnÕt certain. Moreover, even if we do top Michigan, thereÕs no guarantee weÕll hold our position. Everybody knows, after all, that itÕs a lot harder to remain No. 1 than to become No. 1. With that in mind, policymakers should disregard Gov. Ted KulongoskiÕs very first executive order, in which he acknowledged that Ōthe private sector is the engine of growth for the economyĶ and commanded state government to Ōstreamline its regulatory processes.Ķ That sentiment is soooo 2003.
Senators and representatives, meanwhile, need to do some carb loading, polish up their wingtips and do, at the very least, the following:
1. Ram through that enormous tax on beer. Too many breweries have been pumping out kegs in recent years, aided by OregonÕs modest beer tax. This must stop, and raising taxes over 1,000 percent will help. Sure, the proposal has turned Oregon into a national laughing-stock (see the April 15 Wall Street Journal), but lawmakers shouldnÕt let cynical journalists stand between them and their dreams.
2.
Kill all destination resorts. Oh, sure, they
produce property tax revenue but few education-hungry kids; they provide
lodging amid OregonÕs natural beauty for tourists and their wallets; and they
offer Oregonians themselves choices — a bad word, we know — in
homeownership. But they generate jobs, and so they must die.
Especially terrible in this regard is innovation, by which we mean the most
dangerous of all destination resorts: the Metolian
eco-resort. Resorts that seek to disrupt the
environment minimally might actually catch on, generating more money and jobs.
They must be killed in the cradle.
3. Tax the bejabbers out of hospitals in order to expand health care coverage. Hospitals employ a huge number of people — just look at Central Oregon — and anything lawmakers can do to reduce their hiring capacity will help.
4. Expand the prevailing wage. Lawmakers beholden to unions are always seeking ways to expand the use of the prevailing wage — the inflated minimum wage applied to government projects. Such is the case during this legislative session, too. All such proposals must pass. Given a finite pot of money, forcing contractors to overpay their employees will inevitably reduce the number of people who get work. As a result, employment numbers will sag.
5. Tax fun and good health. ItÕs impossible to do that directly, but not indirectly. Legislative proposals are already afloat — so to speak — that would impose big fees on bicycles, canoes and kayaks. All fees must pass. Forcing Oregonians to cough up $50 every couple of years to register their little boats will reduce their discretionary income by that amount. Because they have to give this money to the state, they wonÕt be able to spend it in their local restaurants and shops, which provide jobs. The net effect will be hard to measure, but when it comes to killing employment every little bit helps.
6.
Approve lots of new tax credits for expensive
alternative energy projects. The solar panels and whatnot such tax credits buy
may or may not be made in Oregon, but tax credits reduce general fund revenue.
And general fund revenue pays for — guess what! — teachers and other school district employees, who certainly
do work in Oregon. More expensive solar arrays, fewer teachers!
As a side benefit, eroding education in this fashion will dissuade companies
from moving here and hiring people.
7. Do not by any means tinker with the Ōtransportation planning ruleĶ that has stymied projects like BendÕs Juniper Ridge. Had this rule not existed in recent years, a couple of big companies might have snuck into Bend and hired hundreds of people, perhaps even paying them really high wages. Thank goodness that disaster was averted!
8. Lawmakers are already working on the previous seven recommendations, but they shouldnÕt stop there. The interstate unemployment competition these days is vicious, and Oregon needs to consider every potential advantage, even if that means turning the capitol into a giant altitude tent. The possibilities for incremental change are nearly limitless, from a new tax on golf clubs (everyone knows that golf courses are bad for the environment, and besides, only rich people golf. ItÕs progressive!) to a tax on running shoes, which might goad that terrible job creator Nike to go someplace else.
But if lawmakers are as serious about becoming No. 1 and staying there as they seem to be — if they really want to make Oregon the Tiger Woods of the unemployment world — they should simply tax new jobs, say at a rate of $50,000 each. Naturally, theyÕd call it a Ōjob impact feeĶ and argue that each job creates costs, from the employeeÕs use of environmentally degrading plastic shopping bags to the carbon footprint of his pet goldfish. What could be more Oregonian than that?