Spin Control

Dem freshmen leap into tax reform

OLYMPIA -- Democratic freshmen in the House called this morning for tax reforms ranging from a state capital gains tax to an end to sales tax exemptions for out-of-state shoppers.

At a press conference, a dozen first-term Democratic reps also said they'd like the Office of Financial Management to do a detailed study of the state's revenue picture and the tax burdens its citizens have. They'd also like to swap the Business and Occupation tax for a 1 percent income tax.

Spokane Rep. Andy Billig, one of the 12, said they wanted a tax system that's "fair and stable and adequate."

It's Leap Day, as well as Day 52 of the 60-day session, so a reasonable question might be what's the prospect that any of this will pass before the gavel comes down on the session on March 8?

They're going to try to get proposals out of committees and onto the House floor for a vote, Billig said. But if not, they'll work over the interim to push these ideas. When they pushed for closing a tax exemption the state gives large banks on mortgages last year, they didn't get much support; this year members of both parties in both houses support it, Billig said.

The House is scheduled to vote sometime today on its version of a revised 2011-13 General Fund budget. Are they withholding their votes on their leadership's budget unless they get action on their package?

"We don't leverage votes," Rep. Chris Reykdahl of Tumwater said. "We will vote on our budget today."

Problems with the state's "structural problems" on taxes were a big topic of the House Ways and Means Committee hearing later in the morning, where Rep. Laurie Jinkins of Tacoma, another one of the 12, got a hearing on her proposal for a state capital gains tax. Chairman Ross Hunter of Medina tried to corral testimony by reminding witnesses that the panel consider fiscal issues, not policy matters. That wasn't too successful, so he warned the crowd that anyone who questioned the motives an any legislator, on any side, would have their testimony cut off.




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Jim Camden
Jim Camden is the Legislative and state government reporter, political columnist and blogger for Spin Control.

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