Gov. Butch Otter smells election year political benefits in venturing into Oregon in hopes of luring businesses to Idaho with the promise of more favorable taxes. Good politics doesn't equal good government, however.
Otter should realize that businesses of any stature or size that would significantly increase Idaho's payrolls do not up and move to another state because of a governor's election-year promise of lighter tax burdens. Otter may catch some small fish with that salesmanship—companies with a few employees, not much capital investment in real estate and always on the lookout for a few bucks in savings. In time, they can be seduced to move to yet another state.
Corporations relocate where the quality of life is high—fine public schools, arts and culture, environmental protections, good law enforcement, stable and mature politics. On some of these, Idaho has much work to be done.
Stubborn, low-tax theologians in the Legislature have nearly ruined Idaho's ability to fund sensible, reasonable services by piling up tax waivers and exemptions that have soared to absurd heights.
Idaho's Division of Financial Management reports that in the 2010-11 fiscal year, Idaho will collect an estimated $989 million in sales taxes while exempting $1.75 billion—spelled with a "b"!
The state exempts more than it takes in. How's that for fiscal policy?
Meanwhile, virtually every state agency and program has been put on a starvation budget or perhaps eliminated.
Gov. Otter, come home. The state can't afford your promising more tax breaks.
