| I think we have to recognize a couple of things here. I think first of all we have to recognize that the majority caucus in the state Senate has essentially resigned itself to being an impediment to substantively and positively reforming and restructuring government -- not just how services are delivered, but how they are paid for (restructuring revenue before services would, you know, tend to make the most sense). I think we also have to recognize that eventually it's going to be up to the people of the state to take the road of acknowledged failure, which is bringing questions of tax reform directly to the people. Today, we have Alma Wheeler-Smith: Smith also wants lawmakers to lower the overall state sales tax rate to 5.5 percent and extend it to services, a move she says would raise $1.5 billion. If lawmakers fail to act by early next year, Smith would like to put a proposal on the May 2010 ballot and let voters decide. The change from a flat income tax to a graduated one would require a ballot vote, which she said could be done in August or November. Under her proposal, 80 percent of taxpayers would pay the 4.35 percent rate they currently pay now or a lower percentage, while taxpayers with higher income would pay more. That proposal would raise $2 billion.
The purpose of the citizens initiative is supposed to be a relief valve, a way to move truly popular proposals that the Legislature fails to act on. Indeed, this avenue has at least twice been used to dislodge ineffective legislative bodies -- the bottle deposit and the minimum wage hike a couple of years ago. |
