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Initiative 732, carbon emission tax

Washington voters will decide whether to approve the nation’s first carbon tax in November, a measure supporters say would help the state cut greenhouse gas emissions and set precedent for a national climate policy.
But I-732 has failed to gain support from some of the groups that would typically back efforts to reduce carbon emissions. Both the state’s Democratic Party and the Sierra Club have opposed the initiative, saying it isn’t the right approach to climate policy.
Business and labor groups also are lobbying against it, saying I-732 would be a “job killer” that would shift employment to other states and countries.
The proposal is modeled after a similar carbon tax in British Columbia. Supporters say it is a fair, market-driven approach to reducing carbon emissions, spreading costs across both households and businesses. Supporters also dispute Kaiser’s position that the initiative would reduce the company’s global competitiveness. Supporters describe the initiative as a “tax shift” that raises the cost of carbon but mitigates the effect on manufacturers and Washington families, who would pay more for gasoline, heating fuel and electricity.
Under I-732, each ton of carbon produced in Washington would be taxed by $15 beginning in July 2017. The tax would increase to $25 per ton the next year, and would rise annually until it hits a maximum of $100 per ton.
Washington residents would see a 1 percentage point drop in the state’s sales tax over two years if the initiative is approved and manufacturers paying the new carbon tax would get a break on the state’s business and occupation tax, though some business leaders have said the cut in the B&O tax would not be enough to cover the new carbon tax.

Election results

155
Option Votes Pct
No 1,634,291 59.26%
Yes 1,123,568 40.74%

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