Spokane7
52°
April 10, 2009 in City
Sales tax increase could go before state voters
Income tax levied on high earners among other proposals to help bolster budget
OLYMPIA – Washington House Speaker Frank Chopp said Thursday that there’s a “better than 50-50” chance that voters will be asked to approve a sales tax increase this fall.
As envisioned now, the tax increase would be one-third of 1 percentage point more, or an extra 33 cents on a $100 purchase. It would bring in millions of dollars to help offset budget cuts to hospitals, nursing homes and health care programs.
Senate Democrats, led by Senate Majority Leader Lisa Brown, are floating the idea of a 1 percent to 3 percent state income tax on people earning more than $250,000. But critics, including Gov. Chris Gregoire, say that would likely be a steep uphill fight, both with voters and in the courts.
Brown, D-Spokane, insisted that the income-tax idea was still in play.
“I’ve always been realistic about the fact that it’s a short time frame for putting a big new idea out there,” she said. “… I still think it’s possible. I’m not going to say it’s likely, because … the governor’s made a pretty strong statement. It’s never easy when you’re talking about something like this.”
Facing a multibillion-dollar shortfall over the next two years, state lawmakers have proposed major budget cuts in higher education, health care, K-12 schools and some social service programs. A voter-approved tax increase would help offset some of those cuts.
Chopp also indicated support for a separate plan that voters may also see in November. It calls for the state to sell bonds to raise $1 billion or more to fix up schools and make them more energy efficient.
“I’m very pleased with that basic approach,” he said, although he said that lawmakers were still trying to agree on a way to pay for those 20-year bonds. Gregoire has also said she supports the idea.
Chopp and Gregoire also agree on a plan to let more than 70 school districts across the state – including several in and around Spokane – collect $62 million in voter-approved property taxes unable to be collected because of a state limit on property tax levies. Among House Democrats, “there’s real strong support” for that, Chopp said.
Some Republicans lawmakers maintain that the income tax proposal is a bluff to make other tax proposals look mild.
“This whole thing is gamesmanship,” said House Minority Leader Richard DeBolt, R-Chehalis. “You cut the most vulnerable. You cut the most atrocious things you can do. You send them to the voters. You show them pictures of people in basic states of panic. You tell them they have to give you more money. And then you take that money and you give it to the Arts Commission.”
Brown said the Senate is willing to discuss the sales tax proposal, but that many Democrats want it to be offset by a tax credit for low-income people. Under the state’s sales-tax-heavy system, she said, low- and middle-income families pay a far higher percentage of their earnings in taxes than the wealthy do. That’s why the income tax proposal is aimed at high earners.
“I’ve been really pleased with the fact that people are taking it seriously and having good conversations about it,” she said.
Cutbacks curtail campsite comforts 
vlange on April 10 at 7:57 a.m.
Just be aware.. when taxes are levied, they are NEVER rolled back.
I am just glad that the taxpayers are at least being given the opportunity to say NO.
Perhaps if our illustrious Governor hadn’t done the $9,000,000.00 improvement to her office suite, we wouldn’t need to raise taxes at all.
Virgil Lange
Ninch on April 10 at 9:44 a.m.
First of all… some facts to counter the gross misrepresentation of the previous poster. $9 million was spent on the “Legislative Building” and NOT to improve “her” office suite.
“The Legislative Building houses the Washington State Legislature and the offices of the Governor, Lieutenant Governor, Secretary of State, and Treasurer. This building is the dominant feature of the capitol grounds, with its dome reaching a height of 287 feet (87 m), making it the fourth tallest self-supporting masonry dome in the world…. The capitol dome, weighing 26,000 metric tons, was not held in place by any bolts or fasteners, but by gravity alone. During an earthquake, the dome could shift, along with the sandstone columns supporting it. The columns moved up to three inches (76 mm) during the Nisqually quake. Renovations completed in 2004 permanently fixed the dome to the rest of the building.” (Wikipedia)
If that other poster disagrees, then he needs to provide a factual source the rest of us can check… because I surely cannot find anything to confirm his statement.
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Having said that… I do not care if the taxes are temporary or permanent, because I am adamantly against ANY increase in sales tax… even with a rebate, exemption, or whatever. It is a stupid idea to raise taxes when the economy has taken a downturn, especially when consumers spending is down. It will only depress it more. In fact, I would not have purchased a new refrigerator last week if the taxes had been increased.
Also dumb is an “income tax” on “gross income” because it would hurt a lot of small business people who are not incorporated. ALL are BAD IDEAS. No new taxes, no way.