Oregon Public Broadcasting

You know the saying desperate times call for desperate measures? As Washington and Oregon grapple with yawning budget gaps, two potential "desperate measures" are not on the table: adopting an income tax in Washington and a sales tax in Oregon.

Olympia correspondent Austin Jenkins and Salem correspondent Chris Lehman teamed up to find out: why not?

This is Austin Jenkins in Olympia. Seven years ago Bill Gates' dad -- Bill Sr. -- headed up a group that looked at how to reform Washington State's tax structure.

It recommended that Washington introduce a flat rate personal income tax. And at the same time reduce the state sales tax and eliminate the state property tax.

The goal: to make Washington's tax structure less regressive and more stable. But ever since, that study has been gathering dust on a shelf somewhere. And Governor Chris Gregoire has zero interest in dusting it off.

Gov. Chris Gregoire: "I have just come off a campaign trail. There's no appetite out there for a state income tax. I mean I'm sorry there are a few advocates for it. But let me just tell you the people I talk to -- there's no interest on an income tax."

It wasn't always that way. In 1932, 70-percent of Washingtonians approved an income tax. But it was thrown out by the State Supreme Court as unconstitutional.

In modern times, Washington voters have been just as adamantly against taxing income. Gregoire says she's not going to follow in the path of previous governors who've tried.

Gov. Chris Gregoire: "I've watched my predecessors fail. Iím not interested in that thank you very much."

You get a similar answer from House Democratic leader Lynn Kessler.

Rep. Lynn Kessler: "Why waste our energy on something thatís dead on arrival?"

Kessler says even with Democrats strongly in charge in Olympia, the issue has no traction. Which is not to say individual lawmakers don't support trying.

Senator Rosa Franklin, a Tacoma Democrat, is back with her perennial income tax proposal. She says it would be fairer when combined with a reduction in sales and property taxes. But the issue is politically radioactive she can't even get a hearing on her bill.

Sen. Rosa Franklin: "If could be on the table if the citizens, if they themselves put a push and say letís hear the bill, let us get the real information."

But that's not likely to happen anytime soon. Now for the mirror image from Salem, here's Chris Lehman. 

Thanks, Austin. Oregon has a state income tax. But it's one of five states without a sales tax. Just asking lawmakers here about a sales tax raises eyebrows.

Rep. Phil Barnhart: "I hope you're not suggesting that Oregon move to a sales tax. That's not something I support."

That's Democratic State Representative Phil Barnhart of Eugene. His thoughts matter because heís the chair of the powerful House Revenue Committee.

We'll get back to him in a moment. But first, take a listen to Elizabeth Harchenko. She's head of the Oregon Department of Revenue.

Here she's telling lawmakers that the good people of Oregon are not exactly playing it straight when they file their tax returns.

Elizabeth Harchenko: "If everybody was an angel and reported exactly what they owed there would have been $1.2 billion more reported and paid."

That's right. The state estimates that taxpayers are stiffing the government to the tune of a billion dollars or more per year.

The Department of Revenue wants to hire dozens of new tax collectors to hunt down the deadbeats. But wouldn't it be easier to collect money with a sales tax?

After all, when you buy a TV at your local box store, you wouldn't have a choice as to whether or not to pay the sales tax. But Representative Barnhart says people know how to dodge sales taxes, too.

Rep. Phil Barnhart: "People buy goods in Portland, transport them to Washington. I don't think there's any tax around that I know of that doesn't have some compliance issues."

Of course, Oregon is surrounded by states with sales tax, so it would't be as easy for Oregonians to avoid paying. But there's a reason why lawmakers here are skittish about adding a sales tax.

Oregon voters have rejected one nine times. And you're not likely to see it on the agenda this year.