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 FRIDAY, MARCH 12, 2010 2:38 am |
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Local News 
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Bill would suspend limits on tax hikes Senate Democrats move to put I-960 on hold as those in the House introduce a tax package. OLYMPIA — Majority Democrats moved Wednesday to dump strict voter-imposed controls on raising taxes and begin work on their first package of tax hikes for individuals and businesses.Senate Democrats put forth a bill that drives a dagger through Initiative 960 by suspending its requirement for a two-thirds vote of the Legislature or a vote of the people for new or higher taxes and fees. With that barrier knocked down, Democrats would need only a simple majority to carry out their goal of raising revenue to erase some of the state's $2.6 billion budget deficit while preserving education, health care and human service programs. House Democrats got started Wednesday, introducing the first — but not likely the last — tax bill of the 2010 session, a $363 million package that closes loopholes, eliminates exemptions and expands the universe of taxpayers well beyond the borders of the state. Wednesday's actions are no surprise as Democratic leaders announced before the session they wanted to get rid of the two-thirds requirement they view as a straitjacket on their legislative abilities. “We're in a very difficult budget situation,” Senate Majority Leader Lisa Brown, D-Spokane, said. “We feel (the initiative) puts an unfair limitation on the process in a situation where we have a short time to solve a big problem, and we want to be able to have a simple majority be able to respond quickly and effectively.” Tim Eyman of Mukilteo, author of Initiative 960, blasted the Senate action. “Everybody knew it was coming, but it is literally galling to watch them do it,” he said. Voters passed the measure in 2007 by a margin of 51.2 percent to 48.8 percent. Under state law, it could not be revised by the Legislature for two years, and that waiting period is over. Since Democrats vowed to set aside the measure, Eyman launched an initiative that, if successful, would re-impose the two-thirds vote requirement in 2011. He got his petition forms Wednesday and could start gathering signatures. “All this does is throw gasoline on the fire of enthusiasm for this year's Initiative 1053,” he said. For Republican leaders, it's the moment they've been anticipating and may prove defining in elections later this year. “I am incredulous that Democrats are setting the stage for raising taxes in this economy,” Senate Minority Leader Mike Hewitt said in a prepared statement. “Working people and employers are just trying to survive in this economy. They should not be asked to bail out poor state spending decisions through higher taxes.” As a matter of procedure, the Legislature must deal with Initiative 960 before tackling any tax increases. This afternoon, the Senate Ways and Means Committee is expected to hold a public hearing on the bill. If it survives unchanged through the Senate and House, it will take at least a week and likely longer to reach the governor's desk. As proposed, the two-thirds requirement for general tax increases would expire at the end of the budget in mid-2011. The bill would repeal the requirement permanently if the purpose of the increase is to pay for an unfunded voter-backed initiative such as those boosting teacher pay and keeping class sizes small. And it would eliminate provisions such as the initiative's requirement for nonbinding advisory votes on any tax increase approved by the Legislature that was not subject to referendum. As debate begins on the Senate bill, so too will it start on the 89-page tax bill. Among its provisions is one to end an exemption that now allows residents of Oregon and other states without a sales tax to avoid paying sales tax on purchases in Washington. Another revision would hit owners of private aircraft. They would go from paying a flat fee as low as $20 to being charged an annual excise tax based on plane's value, as boat owners now are taxed. A big chunk of the $363 million would come from requiring some out-of-state companies to pay a business-and-occupation tax for the first time. These firms have no physical presence in the state, but conduct business through online and phone sales. Some exemptions are being rewritten as a result of lawsuits. Several companies won their respective legal fights for exemptions to which the state didn't think they were entitled. That's resulted in a loss of as much as $150 million in anticipated revenue in this budget. Rep. Ross Hunter, D-Medina, chairman of the House Finance Committee and the bill's sponsor, considered most of the bill to be fixes and updates to the state's tax code that cannot be done swiftly because of Initiative 960. It is an “impenetrable roadblock to reasoned government,” he said in a statement. “It's hard to get two-thirds of our Legislature to agree on when to adjourn for dinner, let alone agree to end a bad tax exemption that has outlived its usefulness,” he said. “We're proposing careful changes to I-960 that maintains its intent, but allow legislators to do their jobs.” Learn more Read Senate Bill 6843, which would suspend Initiative 960, and House Bill 3176, which would raise taxes, at www.leg.wa.gov. Highlights of the tax package: Tax proposals and their estimated revenues through June 30, 2011: Eliminate sales-tax exemption for nonresidents: $37 million Repeal of public utility tax deduction for out-of-state trucking firms: $6 million Levy excise tax on privately owned aircraft: $4.5 million Extend business tax to certain out-of-state firms: $73 million Cap allowable deductions by banks for interest on first mortgage loans: $62 million Target tax avoidance schemes: $12 million Revise tax code in response to lawsuits: $105 million Source: House Finance Committee Reporter Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com |
- Woman still in critical condition after Monday crash on Highway 9
- Cut through solid-white lines and it could cost you $411
- Study: Boeing tanker seen as big job producer
- County to pay builders $1.7 million to settle suits
- Marysville girl on bike in critical condition after struck by car
- Lawmakers act to roll back state ferry workers' travel perk
- Fugitive charged in toddler's slaying accused of robbery
- Mariner notes
- Special session likely to finish budget, tax increase
- Everett man pleads guilty to murder on Tulalip reservation
- Cut through solid-white lines and it could cost you $411
(22) - Tulalip man accused in a toddler's death is a no-show (19)
- Special session likely to finish budget, tax increase (12)
- Fugitive charged in toddler's slaying accused of robbery (11)
- County to pay builders $1.7 million to settle suits (10)
- Woman still in critical condition after Monday crash on Highway 9 (10)
- Marysville girl on bike in critical condition after struck by car (8)
- Community Transit cuts will hurt; just ask a rider like Crystal (4)
- Senate votes to end free rides for ferry workers (4)
- New high-tech tool aids searchers after avalanches (4)
- Meadowdale boys refuse to fold, but rally falls short in 3A state opener
- Prairie’s zone defense stymies Lynnwood at Class 3A state girls basketball tournament
- Ellensburg takes it to Archbishop Murphy girls at 2A tourney
- Beyond the ‘Woodstock Generation'
- Magical run for Jackson
- Schools, public debate budget cutting ideas
- Farrand watercolors on exhibit at MLT library
- FD1, FD7 could merge
- Boeing to Offer NewGen Tanker to US Air Force
- New CEO at Valley General Hospital
- Dan Koffman's ‘TopSpin' marketing astounds, inspires, motivates, produces — just for starters
- Economic forecasts for Snohomish County, Everett, Marysville offer some bright moments
- Government officials influencing home prices
- Massive EPA energy regulations meet challenge
- Washington state healthcare reforms also needed
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COMMENTS
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The politicians just don't get it. They will on the next election when most every incumbent hopefully will be voted out. We are not red or blue, democrat or republican, we are Americans first. Now do your duty and defend the constitution.
Huckbolt | Feb 4, 2010 11:23 pm | 0 replies | Request removal
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I heard it passed, hide your wallet. They spent more than they had to spend so they want more of your hard earned cash. Bend over, hear it comes.
Stan Jones | Feb 4, 2010 3:09 am | 1 replies | Request removal
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Jez, I was seriously looking into wanting to move to Washington, but after reading this, IT'S WORSE THAN CALIFORNIA!!!
It's really bad here in southern California due to the massive spending and hyper taxes rates(9.75% sales tax plus rising state income taxes) the Dem controlled state congress have put on our backs for the past 20 years, but if Sacramento EVER did what Olympia is planning to do to you poor guys, there'd be riots in the streets here for ignoring the people's vote!
True, most people in California are just fooled and lied to by the Dems here, and they believe them every time (like most believe the Obama sweet talk), but there's a limit, even to fooling fools!
Wake up people, it's YOUR money and YOUR power, don't become the new California!
Ken Edwards | Feb 04, 2010 6:40 pm | Request removal
Question: If our vote is valid enough to put them in Olympia, why is it not vaild enough to be respected?
Thomas Jefferson | Feb 4, 2010 4:09 pm | 0 replies | Request removal
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We have just been proven, once again, that our vote, our voice, and our wishes don't matter to the ruling elite. It is decried that there is so much voter apathy, this is just another example that we do not matter.
The reason for the 2/3rds majority to raise taxes was to encourage our "elected" officials to be brave, to lead, in times of hardship. This is that time and they have failed us. Is there anyone in Olympia worthy of our respect? worthy of our support? We deserve better, we deserve leaders.
Thomas Jefferson | Feb 4, 2010 4:01 pm | 0 replies | Request removal
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As a Liberal Democrat even I can see that this is wrong. When the people all agree on something, it should STAND for something. Like it or lump it, we the people took a vote. More folks from one side had the support. Now Olympia has to aknowledge what they were handed and not just wipe their collective asses with the citizens said.
Mike Flavin | Feb 4, 2010 2:15 pm | 0 replies | Request removal
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Thanks Mike for proving my point. Sarasm is the best solution you have. Ive probably lived here longer than you. I 960 barely passed by 2 percent. If it only takes a majority to pass an initiave, then why 2/3 for a tax increase? I dont here you saying anything about not increasing class size and teacher raise initiatives being put on hold. Im for streamling government. Change the spend all you got or lose next year money mentallity, and they wont WASTE money. Im ready to do my part, Ill go with a group to help look at the budget. How bout you Mike?...At least Im willing to use my name and not hide behind ascreen name. The government doesnt change by party, if it did, then their would have been a budget surplus in Wash DC from the last 8 years.
Bill Proctor | Feb 4, 2010 1:27 pm | 0 replies | Request removal
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If the taxes make sense than a 2/3 approval should not be a problem. These politicians were voted in by the people. The PEOPLE voted for this tax limitation! The politicians need to do their job and not circumvent things that the people approved. I will be doing my best to vote out anyone that works to get rid of this tax limitation. It makes this Democrat want to turn away from his party. It makes me sick that they so blatantly ignore what we voted for.
Mike None | Feb 4, 2010 11:33 am | 1 replies | Request removal
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You are the typical washingtonian.You vote for anyone because he claims to be a democrat.Use your head.Explore the issues and vote for the person who will do the least damage.
mark s | Feb 04, 2010 12:00 pm | Request removal
You guys are rediculous. The usual rederic, its all about me. Its about time you guys looked at the real picture. If ya spend less then there is less in the coffers. Have you been spending less? Then you got a tax break. Tim Eyeman has been making it harder to be a legislator.
Heck Ive figured out why he doesnt run, his foundation pays him more money. The state has been making cuts, big ones. Do you want Washington to become like Colorado? Officers getting laid off, roads not being worked on, one in every three or four street lights being on? Oh yes Colorado is the great Eyeman example! Its not working there. Now you are starting to see the bad side of the Eyeman economic example. The legislature looks like its trying to free its hands up some. Im all for streamlining government, but WE all enjoy a certain quality of life here. Tim old boy, Ill say it again, run for office, try and balance a state budget. Heck even start a commission to micro manage our budget, then I might listen to your ITS ALL ABOUT ME! agenda.
Bill Proctor | Feb 4, 2010 8:13 am | 3 replies | Request removal
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Try managing the money currently being collected. Isn't it about time for the taxpayers to pay off another multi-million dollar DSHS lawsuit? OR... Maybe the state should be buying up some more land for future parks. OR...Maybe Gregoire needs to go on a China junket to see how they are doing over there? OR...Maybe the legislators should all get a new raise for their hard work trying to figure out how to raise taxes? OR... and here's a wild thought, how about making Washington a more tax friendly state so companies like Boeing hire Washington workers instead of scrambling to move their operations elsewhere? OR...(and I'm sure this is how Olympia thinks) Maybe if Washington can extract just a little more from the remaining citizens and businesses, we can use THEIR money to balance a final budget before they before they leave as well.
James Maule | Feb 04, 2010 8:48 am | Request removal
Now we are blaming the government for Boeing adding an extra line East. Do they have an income tax there? Ill agree we dont need more money for parks right now, Im a moderate. Im asking for some solutions, not rederic. Cutting taxes isnt the ONLY answer, obviously that doesnt work, look at the federal budget. Oh yes "Sarcasm is the lowest form of wir"
Bill Proctor | Feb 04, 2010 10:03 am | Request removal
You are speaking from your proctor.The people have said no.Move back to Colorado
mark s | Feb 04, 2010 10:32 am | Request removal
What right do they have to over ride VOTER IMPOSED LIMITS? When will politicians understand that's not what the majority wants? Stop spend spend spend. And don't buy any more police cars. If that were you or I, we would have got a ticket for driving to fast for the road conditions.
Cranenut | Feb 4, 2010 9:06 am | 2 replies | Request removal
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Well 960 BARELY passed. I didnt see anyone complaining when they changed the teachers iniative, or the class size iniative. Well ya cant have it both ways....
I say let them figure it out, Ill agree we need to streamline government. All this babble about them being crooks blah blah.
Lets have a group of citizens break the budget down.... Thats a start! Im not not just spewing rederic
Bill Proctor | Feb 04, 2010 9:55 am | Request removal
With a name like proctor we can tell where you're speaking from.The people as a majority are fed up.Anyone with a sixth grade education can spell rhetoric. You are out of touch.THROW THE BUMS OUT>
mark s | Feb 04, 2010 10:13 am | Request removal
In this economy, I don't see a whole lot of problem with adding taxes with the following caveat:
Pols need to address the gorilla in the closet- high wages and hyperexpansion of numbers of state employees.
So far from the news articles, the legislative and executive branches haven't shown the 'guts' it takes to confront the gorilla.
Some of us have had our incomes halved and probably on an average about 20% as average across the board, and yet, we are not seeing that with public sector employees.
Could get flamed here, but we all have to chip in and so far the electeds haven't shown the guts to confront the total picture.
BTW, tax increases are only good if people are working and consuming. People should keep that in mind.
ted trepanier | Feb 4, 2010 8:36 am | 0 replies | Request removal
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No accountability! It's time to vote out these politicians who spend legislative time focused on how to extract more money from the voters. It's time to actually remember what they are doing now when they come up for re-election. You voted these bums in. Make them pay on election day for what they do after elected. VOTE THEM OUT!!!
James Maule | Feb 4, 2010 8:22 am | 0 replies | Request removal
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It seems the elected officials who want to raise taxes have a hearing and reading problem. Maybe we the remaining tax payers in the state should start collecting old hearing aids and reading glasses so those dingbats in Olympia can finally hear our voices and read our letters.
What other logical explanation can there be? Oh excuse me, logic and Olympia cannot be used in the same sentence unless mutually exclusive is also used.
George Schlosser | Feb 4, 2010 8:15 am | 0 replies | Request removal
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If there anything left that we dont pay tax on I am sure they will find a way to tax it. May they should start paying tax on thier wages like everyone else. Oh but thats right thier special and dont have to. I see no problem with getting 2/3 vote for thier B/S tax bills . After all wouldnt that reflect what the people want?? Or would that be to simple. I belive they forget who they are working for. Like I said maybe they should start paying taxes and see how it feels for a change.
Rich Wynn | Feb 4, 2010 6:35 am | 0 replies | Request removal
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"No taxation without representation" has no meaning to these morons.
The Constitution appears to be a just a minor speedbump in their agenda of tyranny.
Patty Murray, hang on for the ride of your life. The rest of you will also be on that ride when your time comes!
hope floats | Feb 4, 2010 6:15 am | 0 replies | Request removal
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Ignore the vote of the people??
I guess I shouldn't be shocked by their "We don't care what the people want" attitude anymore, but I still am!
That's a great way to govern!
I say throw all the dems out come the next election!
Rodney Hovde | Feb 4, 2010 6:05 am | 0 replies | Request removal
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