Monday, January 11, 2010

I respond to Mark Thoma's Op Ed

In responding to the tough choices facing Oregon voters, Prof Thoma recommends that Federal government step in a general liquidity provider for states which cannot adjust budgets on the boundaries.

I want to remind Oregon voters what the payback ratio is for states and federal taxes. The Tax Foundation's recent report shows New Mexico gains $2 in federal spending for each dollar of federal taxes, while Oregon gains $ .94. The more Oregon relies on federal largess, the less their total return.

Oregon voters would be better advised to practice flexibility in state government and avoid making long term labor commitments.

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