The following is presented as part of The Columbian’s Opinion content, which offers a point of view in order to provoke thought and debate of civic issues. Opinions represent the viewpoint of the author. Unsigned editorials represent the consensus opinion of The Columbian’s editorial board, which operates independently of the news department.
He is enthusiastic, that much is certain. He is confident and passionate and eager to extoll the virtues of the state he has governed for the past six years.
Jay Inslee, in addition to being governor of Washington and a candidate for the Democratic Party’s nomination for president, is an effective and almost giddy cheerleader for our state. And when he visited The Columbian’s Editorial Board on Friday for a brief meeting (hey, governors have busy schedules), he brought that enthusiasm with him.
Mostly, he is excited about the budget passed by this year’s Legislature. That’s probably because it is the first thing we asked him about; if we had asked about the Seahawks, it’s likely he would have been stoked about them. And in the process, Inslee was unabashed in his support of an 18 percent increase in state spending.
You might think that sounds excessive. I might think that sounds excessive. But Inslee sells it without a hint of doubt.
“It’s a budget that makes both necessary expenditures and advancements,” he says, rattling off items such as mental health, tuition support for higher education, and clean energy.
“We’re a growing state; we have the best economy in the country. As a result, people are flocking to the state of Washington, and that means more services,” he said.
“It’s really hard to argue with success.”
Indeed.
U.S. News & World Report ranks Washington first for growth potential and fourth for business environment; CNBC ranks it second for business; Business Insider says we have the fifth-best economy; etc. There are many reasons Amazon has become a globe-conquering behemoth and Starbucks has changed the way the world drinks coffee, and some of them have to do with Washington’s business climate. In recent years, the state has annually ranked among the leaders in economic growth.
And yet the big question, the one that Republicans will hammer home as they try to regain majorities in the Legislature, revolves around tax increases.
Despite expanding state revenue thanks to a robust economy, Democrats found cause to pass a series of tax increases. Unlike the federal government, Washington lawmakers need to fund the services they approve and need to pass a balanced budget; that led to increases in the real estate excise tax and the Business & Occupation Tax, the removal of a sales tax exemption for out-of-state residents, and a tax on large banks.
When it comes to government revenue, Democrats seem to be saying, you can never have too much of a good thing. But the guess is that many residents won’t be as enthusiastic as Inslee about a $7.8 billion increase to the state budget for the next biennium.
All of which brings up some philosophical questions about economics and growth and taxes.
While critics complain that Washington has an oppressive tax burden that hampers business and drives companies out the region, according to WalletHub.com we have the 32nd highest tax burden among the states.
And while critics complain that progressive policies such as a high minimum wage cause employers to flee, the evidence does not support that assertion. Mississippi, West Virginia, New Mexico and Kentucky are ranked among the worst economies in the country, and they all have an exceptionally low minimum wage.
Correlation or causation? Well, it’s hard to argue with success. And it’s hard to argue with Inslee’s characterization of political opponents as being bounded by “fear and limited imagination.”
OK, OK, he used that in talking about the Interstate 5 Bridge, but it also fits in with the discussion of economics.
And so Inslee lauds the state and he sells the budget with the confidence of a carnival barker, saying, “We have covered the map on progress, and I think that’s the story, to be honest with you.”
But I wonder if taxpayers will share his enthusiasm for tax increases when the state already is awash with money.
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