Page 4A East Oregonian Thursday, September 6, 2018 CHRISTOPHER RUSH Publisher KATHRYN B. BROWN Owner DANIEL WATTENBURGER Managing Editor Founded October 16, 1875 OTHER VIEW Kicker will land on Oregon’s backside The Eugene Register-Guard he state Office of Economic Analysis could not have conjured a better illustration of the perversity of Oregon’s kicker law: In 2020, the office’s forecasters predict, Oregon will return $686 million to individual income taxpayers — just as the state tips into a recession. It’s the fiscal-policy equivalent of spending your savings on a vacation the week before you need to pay for a kidney transplant. To taxpayers, it looks a little different — at first. The median Oregon household, with an income of $36,000, will receive a state income tax credit of $162 in 2020, a relatively small but welcome infusion of cash that will arrive when Oregon’s long economic expansion comes to an end. It could even have a modest stimulative effect on the state’s economy. But the credit will be tilted steeply toward those who need it least, with the top 1 percent of households — those with incomes higher than $400,000 — receiving credits of $6,787. Households in the bottom 20 percent will get $13, and those in the second quintile, with incomes between $11,200 and $26,300, will get $75. These lowest-income households are most likely to be affected by recession-induced cuts in state services, cuts that could have been ameliorated with the $686 million in refunds triggered by the kicker law. The kicker law was passed by the Legislature in 1979 in an effort to head T off a California-style property tax revolt. The revolt came anyway when voters passed Measure 5 in 1990, which capped property tax rates and shifted responsibility for financing local schools to the state. In 2000, voters approved a legislatively referred ballot measure to add the kicker law to the state Constitution. The kicker law is unique to Oregon. It requires that when state revenue exceeds official forecasts by 2 percent, the entire amount above the projected figure must be returned to taxpayers. Before the start of the 2017-19 biennium, the state’s economists projected $18.4 billion in revenue from sources other than the corporate income tax, mostly the personal income tax. The latest projection, released last week, revises that figure upward to $19.2 billion — a 3.7 percent increase, well beyond the kicker law’s 2 percent threshold. A separate kicker applies to corporate income taxes, which are also flowing into state coffers at a higher-than-expected rate because of a strong economy and changes in federal tax law. In 2012, voters amended the state Constitution’s kicker provision to divert the corporate kicker funds to school funding. After nearly 40 years, the personal- income-tax kicker appears to have become a permanent fixture of Oregon’s fiscal policy. An outright repeal would be a tough sell politically — particularly with the prospect of another refund on the horizon. But Oregonians might be willing to modify AP Photo/Andrew Selsky, File This Jan. 11, 2018, file photo shows dark clouds over the Capitol in Salem. the kicker law in a way that makes public services, particularly education, less vulnerable during economic downturns. The vulnerability stems from Oregon’s heavy reliance on personal income taxes — the state has no sales tax, and property taxes are reserved for local governments. To a greater degree than sales or property taxes, income tax revenue flows freely during periods of economic growth, and slows dramatically during recessions. One way to dampen this volatility is to build up a rainy day fund during boom times, and use these savings to cushion the effects of a downturn. The kicker is an obstacle to such a countercyclical practice. Oregon has two rainy-day reserves — the Oregon Rainy Day Fund and the Education Stability Fund — that are fed by corporate taxes, lottery revenues and other sources. These reserves will contain $1.2 billion at the end of the 2017-19 biennium, according to the latest projection. That would not be enough to carry Oregon government through a recession that is deep, long or both. The kicker law could be amended to require that all or a portion of refunds be deposited in the rainy day reserves until they contain savings equal to, say, 15 percent of the general fund, which would amount to about $3 billion. After that threshold of adequacy was reached, kicker refunds to taxpayers would resume. Such an adjustment to the kicker law would ensure that larger-than-expected income tax receipts aren’t immediately spent, and provide refunds to taxpayers once a degree of fiscal stability is achieved. Such a system would entail some deferred gratification for Oregon taxpayers. But it would be more sensible than providing big tax refunds on the eve of a recession. OTHER VIEWS Too much secrecy keeps public in dark N ational leaders of all stripes have complained for decades that Washington keeps too many secrets. Too much of the government’s information is classified, the argument goes, making it nearly impossible for Americans to know what their leaders are doing. “Secrecy is a mode of regulation,” Sen. Daniel Patrick Moynihan wrote in 1997, when the congressionally created board he headed, the Commission on Protecting and Reducing Government Secrecy, released a report. “In truth, it is the ultimate mode, for the citizen does not even know that he or she is being regulated.” Moynihan hoped that a “culture of openness” would develop to balance the culture of secrecy. It didn’t happen. A dozen years later, in 2009, The New York Times editorialized that the federal government’s creation of “107 different categories of restricted information ... seems designed not to protect legitimate secrets but to empower bureaucrats.” Still more recently, when the House held hearings on secrecy in 2015, the journalist Terry Anderson testified, “The Moynihan commission recommended some changes in the law, including an office of declassification. Nothing was acted upon.” Today, the culture of secrecy is keeping the public from learning some Byron basic facts about York the Trump- Comment Russia affair, even as newscasts and newspapers are filled with reporting, speculation and debate about it. When it comes to allegations that the Trump campaign conspired with Russia to fix the 2016 election, the Justice Department and other agencies have withheld information from the public because such information is classified, or because it is purportedly critical to an ongoing investigation, or because officials just want to keep the department’s secrets secret. Remember the Comey memos? Starting in the transition, then-FBI director James Comey wrote notes on each of his encounters with President Trump. Later, he leaked some of them to the press in hopes of setting off a firestorm that would result in the appointment of a Trump-Russia special counsel. His plan worked. But even after that, the Justice Department kept the Comey memos tightly under wraps, as if they were one of the nation’s highest-level secrets. When members of Congress of both parties demanded to see the memos, the Department would allow only a few lawmakers a glimpse -- and then only with an FBI minder present, and no copying or note-taking allowed. The situation changed only when Comey began a book tour, with much of his presentation clearly based on the memos. After that, even the Justice Department couldn’t come up with a reason to keep them secret. The public finally got to see the memos, and the country -- and the investigation -- survived. This year, House Intelligence Committee Chairman Rep. Devin Nunes wrote a memo, based on classified information, about the FBI’s rationale for wiretapping the Trump campaign’s volunteer foreign policy adviser Carter Page. The FBI and Justice Department protested that releasing the memo would endanger both lives and national security. President Trump ordered it released, and the public finally learned that the FBI had used the opposition research known as the Trump dossier as part of its wiretap application. The country -- and the investigation -- survived. Then there are the Michael Flynn papers. On Jan. 24, 2017, just four days into the Trump administration, the FBI went to the White House to interview Flynn, ostensibly on the suspicion that during the transition he might have violated a never-enforced law on U.S. contacts with foreign officials. It was that interview that led Flynn to plead guilty to lying to the FBI. But Comey told Congress the agents who interviewed Flynn did not think he lied to them. The public has no idea what happened -- a situation that could be remedied by release of the write-up, known as a 302, that the agents did immediately after the interview. But the Justice Department, along with the special counsel, is steadfastly refusing. There are also the Sally Yates emails. Congress has asked for emails to and from Yates, an Obama appointee who played a role in sending the FBI to question Flynn. Even though Congress limited its request to just 10 days of emails, the Justice Department said no. Finally, there are the remaining parts of the Carter Page wiretap application. Some, but not all, of it was released in the wake of the Nunes memo. Now, Republicans claim some critical information is still being withheld. The public has no way of knowing. The need for the government to stop reflexively classifying and keeping secrets is especially acute in a case like Trump-Russia, when there is endless public debate over every aspect of the case, and some of the president’s adversaries hope to use the affair to remove him from office. Nothing could be of greater public interest and benefit than the release of more facts. But for the moment, too many people are too set in their ways to bring a culture of openness to this politically charged affair. That group can even include journalists. Back in 1997, when the Moynihan commission report was released, The Washington Post’s E.J. Dionne wrote: “A journalist can win acclaim by publishing a ‘secret report’ leaked by a government official who also benefits from the transaction. But other citizens robbed by secrecy of any knowledge beyond what was leaked have no way of judging what the published account means.” That was true in 1997. And it is true today. ■ Byron York is chief political correspondent for The Washington Examiner. YOUR VIEWS Democrat McLeod-Skinner sanitizing her message to voters I have a number of friends who are far to the left of left. At the behest of some of them I took a look at Jamie McLeod-Skinner, Democratic candidate for U.S. representative in the second district of Oregon. Under her gun safety values tab of her website the candidate spelled out what she would do if she could in regard to what she described as military-grade weapons. She would, if she could, require the confiscation of millions of guns she or her language committee deem military grade. She would, of course, somehow compensate owners with our money. She did hold out possibility of ownership if stored at a gun range and the gun nuts pay dearly. I pointed out I could not support this Unsigned editorials are the opinion of the East Oregonian editorial board. Other columns, letters and cartoons on this page express the opinions of the authors and not necessarily that of the East Oregonian. candidate, although it was refreshing to see honesty as to her intentions. Soon after that the tab was sanitized to a more “can’t we just all get along and work together” message. This says a few things to me. The candidate has not a clue about 75 percent of the constituents she hopes to represent. She is no different than Greg Walden in that regard, only she represents the left side of the state and political spectrum. She is willing to make criminals out of good law-abiding citizens for exercising their constitutional rights. She is willing to sacrifice important things like health care for all to pander to her core support group. And she covered up her deeply held belief in the hope of winning. I don’t tell anyone how to vote but I will hold my nose and vote Walden on November 6. Bruce Staley Pendleton The East Oregonian welcomes original letters of 400 words or less on public issues and public policies for publication in the newspaper and on our website. The newspaper reserves the right to withhold letters that address concerns about individual services and products or letters that infringe on the rights of private citizens. Letters must be signed by the author and include the city of residence and a daytime phone number. The phone number will not be published. Unsigned letters will not be published. Send letters to managing editor Daniel Wattenburger, 211 S.E. Byers Ave. Pendleton, OR 97801 or email editor@eastoregonian.com.