It is good to see
Governor Brad Henry and Oklahoma's legislators hard at work as
they prepare for the upcoming Legislative Session. Over the last
few weeks state officials have been trotting out their proposals
for new spending and for new tax cuts. This promises to be an
entertaining session as officials debate these important issues.
Interestingly, the more intense the debate, the less of a need
there is for TABOR--the so-called Taxpayer's Bill of Rights.
Conservatives in
Oklahoma (and around the nation) have long decried the growth in
government. According to the Tax Foundation--a conservative
group that monitors taxes across the nation--Oklahoma's tax
burden for supporting its state and local governments has risen
from 8.0% in 1970 to 9.4% today (it reached a high of 9.9% in
2001). In other words, today Oklahomans must pay more of their
income to support government than 35 years ago. However, this
number is still smaller than the national average.
As a result of the
growth in Oklahoma's government, some Oklahoma conservatives are
proposing that we impose new constitutional limits on how fast
government can grow. The proposal--known as the Taxpayers' Bill
of Rights (or TABOR)--would limit the growth in state government
spending to the sum of the rates of inflation and population
growth.
But many seem to
forget that we already have a limit on government growth--the
political process. Over the next few months, liberals and
conservatives will be debating whether Oklahoma's government
should be larger or smaller. A few months after that, we will
get to decide which side we like the best. The political process
helps to ensure that the Legislature follows the will of the
people. After all, if we do not like our legislator's
performance, we can pick someone new in November.
I know that many
conservatives have a natural distrust of the political process
and point to Congressional Republicans as an example of a
process that fails to serve the interest of society. I can
understand the frustration that some conservatives feel with the
Republican Party in Washington, D.C. After all, Republicans
gained control of the U.S. House of Representatives on the
promise that they would reign in wasteful government spending.
However, a decade later these Republican revolutionaries have
proven to be more wasteful than their predecessors.
The reason that
Republicans succumbed to the D.C. culture is that there is no
incentive (other than it being the right thing to do) for
Congress to stop wasting money. There is no punishment for being
wasteful, in fact Congress often reaps rewards for their
profligacy. Even when Congress wastes money to satisfy
supporters, they can still promise more tax cuts. In other
words, Congress can hide the cost to taxpayers. It is no
surprise that with these incentives, the U.S. government has
been in perpetual debt since the American Revolution. As of last
week, our nation has accumulated $4.7 trillion in debt.
Congress will not change because there is no incentive to
change.
This is why an
effective system of government establishes rules which give
policymakers the incentives to do the right thing. But in
Oklahoma, we already have a set of rules that limit spending
behavior--the Legislature must balance the budget each year.
Thus, every dollar the Legislature wastes means one less dollar
of tax cuts. Since Legislators are rewarded by limiting taxes,
they now have an incentive to limit wasteful spending. At the
federal level, Congress can give everybody everything without
worrying about how to pay the bills. At the state level, this is
not possible. Every penny spent by the Legislature necessarily
means an additional penny of taxes.
This is why the
debates in the Legislature in the coming months will be so
intense. Some Legislators believe the government should increase
spending on education, health care, roads, and prisons. However,
others believe that government should spend less so that they
can pass more tax cuts. This decision will be made (and should
be made) with one eye on the November elections. The will of the
voters will guide the Legislature to make the decision that
Oklahomans want.
Instead of trying to
impose more limits on the Legislature (like TABOR proposes), we
should use the upcoming session to watch the beauty of the
Legislative process at work. We should watch as they weigh the
competing interests of more government services and more tax
cuts. We should watch the debates, the disagreements, and most
importantly the decisions. And remember if you do not like the
result, you can express your discontent at the ballot box.
Feel free to submit your comments to
mhepner@ucok.edu.