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New Allred ad zeroes in on economy
October 19, 2010
Contact: Shea Andersen
208.720.9904m
shea@allredforidaho.com
Idaho’s growth stalls under Otter
Today the Allred campaign released a new ad comparing Keith Allred’s strategy with Butch Otter’s failed leadership on the economy.
The ad is available to viewers at the Allred for Idaho YouTube Channel.
Idaho lags under Otter
“Economic Geography” states that Idaho’s economic decline is not just the result of a general economic downturn, but of Otter’s failed strategy. Instead of focusing on economic growth, Otter tended to special interests and even tried to hike gas tax and registration fees during the worst economic downturn in our lifetimes. He also cut education for the first time in Idaho history. Lacking effective leadership, Idaho’s economy has suffered more than surrounding states during these tough economic times.
Personal income stalls
Otter’s failed economic leadership is evident in almost every economic measure. The Allred ad focuses on per-person income growth—perhaps the most fundamental measure of an Idahoan’s economic well-being. During the Otter years of 2006-2009, Idaho showed 0.2 percent growth, worse than all surrounding states except Nevada.
This represents a reversal from economic leader to straggler. For the 20 years prior to the Otter administration, Idaho was a regional leader in income growth. From 1986 to 2006, through good times and bad, through Republican and Democratic administrations, the income of Idahoans grew 168 percent. Compared to the eight states closest to Idaho, we were second in income growth only to Wyoming during those years.
GDP fades
Other measures demonstrate Otter’s failed economic leadership just as clearly. Otter’s Project 60 focuses on growing Idaho’s Gross Domestic Product (GDP). However, Idaho’s GDP growth rate actually dropped relative to the rest of the nation on Otter’s watch. From 1986 to 2006, Idaho had the seventh fastest rate among all states. The last year reported is 2008. Two years into the Otter administration our GDP growth rate had plummeted to 48th place. That's right, only two states in the nation grew more slowly than Idaho. Idahoans can’t take another four years of Project 60.
Similarly, in 2006, Forbes ranked Idaho the sixth best state for business. After four years of Otter, we’re ranked 12th.
Time for change: Lower taxes
Idaho needs a leader with a sound plan to reverse the Otter decline. Instead of trying to hike taxes and cut education like Otter, Keith Allred’s plan is to cut tax rates by closing special interest tax breaks that don’t make sound economic sense and make cost-effective investments in education.
These actions will return Idaho to the ranks of economic leaders. Cutting tax rates by closing special interest tax breaks will ensure that the new and small businesses which generate most of Idaho’s economic growth aren’t penalized by outdated political deals that benefit only old and big businesses. Making cost-effective investments in education will ensure that all Idaho businesses have access to a highly skilled workforce.
A strategy that works for Idaho
Allred’s strategy has already worked in other states. While Idaho dropped from sixth to 12th on Otter’s watch, Utah vaulted from fourth to first. How? Forbes cites Utah’s recent success in cutting income tax rates while still providing a highly educated work force.
Sources as diverse as the Tax Foundation and noted business expert Clayton Christensen agree: States with strong economies share a commitment to keeping their tax rates low and broad, and remove special interest preferences.
“I believe that the market makes the best choices of winners and losers in our economy, not state government,” said Allred. “As governor, I’ll work to give everyday Idahoans and small businesses the same low tax rate as the powerful and politically connected. Idaho needs fair play, not special deals.”
Data & Sources
The 2006-2009 per capita personal income growth data from the Bureau of Economic Analysis at the U.S. Department of Commerce show:
| Rank | State | Per capita personal income growth rate, 2006 – 2009 |
| 1 | Washington | 8.5% |
| 2 | Montana | 8.1% |
| 3 | Wyoming | 7.8% |
| 4 | Oregon | 4.3% |
| 5 | Utah | 4.2% |
| 6 | California | 2.4% |
| 7 | Idaho | .2% |
| 8 | Nevada | -3.9% |
| Average for surrounding states | 4.2% |
The 1986-2006 per capita personal income growth data from the Bureau of Economic Analysis at the U.S. Department of Commerce show:
| Rank | State | Personal Income Growth Rate, 1986 – 2006 |
| 1 | Wyoming | 213.6% |
| 2 | Idaho | 168.3% |
| 3 | Montana | 160.5% |
| 4 | Colorado | 160.3% |
| 5 | Washington | 156.5% |
| 6 | Oregon | 146.4% |
| 7 | Utah | 146.2% |
| 8 | Nevada | 145.4% |
| Average for surrounding states | 158.3% |
For all BEA, Department of Commerce data go to: http://www.bea.gov/regional/index.htm
For the Forbes article on 2010 business climates, go to: www.forbes.com
For the Forbes 2006 data, go to: www.forbes.com/lists/2006/9/06beststates_The-Best-States-For-Business_land.html
From the Tax Foundation: “Good state tax systems levy low, flat rates on the broadest bases possible, and they treat all taxpayers the same. Variation in the tax treatment of different industries favors one economic activity or decision over another. The more riddled a tax system is with politically motivated preferences the less likely it is that business decisions will be made in response to market forces.”
Here’s the link: http://taxfoundation.org/files/bp59.pdf
Clayton Christensen: “By eliminating special interest tax exemptions, Keith Allred will remove barriers to market entry for new enterprises that will more rapidly grow the economy.”
More here: http://allredforidaho.com/Endorsements/Endorsements-Other/Endoresement_ClaytonChristensen.aspx
Economic Geography ad: Article citations
1. “Because Otter focused on helping special interest cronies instead of creating jobs.”
-Spokane Spokesman-Review 7/20/10
-Associated Press 12/15/09
The Pam Lowe case
“New questions in transportation department firing case”
Spokane Spokesman-Review July 20, 2010
“Lowe’s wrongful termination lawsuit alleges, in part, that the Otter administration pressured her not to trim back the contract – even though lawmakers called for cutbacks – and when she persisted, she was fired.”
http://www.spokesman.com/stories/2010/jul/20/new-questions-in-itd-firing-case/
Helping Qwest, stiff-arming Syringa Networks
The Associated Press, December 15, 2009
“In the lawsuit filed in 4th District Court, Syringa's attorneys say an impartial evaluation team selected by the Department of Administration found the company was the most technically proficient bidder and also the least expensive. But, Syringa contends, department director Mike Gwartney decided to award the contract to Qwest Communication Co. anyway, depriving Syringa of an estimated $60 million in work over the next two decades.”
http://www.kmvt.com/news/state/79357752.html
2. “And Otter even tried to raise taxes and fees”
Eye on Boise, Spokesman Review
“Otter wants gas tax hike, fee increases”
Dec. 3, 2008
http://www.spokesman.com/blogs/boise/2008/dec/03/otter-wants-gas-tax-hike-fee-increases/
Or
State of the State Address
January 2009
http://gov.idaho.gov/mediacenter/speeches/sp_2009/sp_sos2009.html
Keith Allred
governor
Clayton Christensen
economy
Idaho
Butch Otter
