Spokane7
62°
April 10, 2010 in City
Gregoire: ‘Time’s up’ on session
Democrats unsure they have enough votes for tax plans
OLYMPIA – The Legislature returns today with time running out in its special session and only two options to fix its unbalanced budget, Gov. Chris Gregoire said Friday: Pass an array of taxes that covers everything from soda and bottled water to candy and cigarettes, or go home and have her cut the general-fund budget by 20 percent.
But don’t try to tinker with the tax package, she said. “You can pick it apart and it will fail.”
The tax package, which has not been seen by the public because it and the budget it supports were not final as of Friday afternoon, will be released within the next four days. Democrats in both houses will have to get at least a simple majority to pass it. Republicans remain united against any tax increase and want more cuts in wages, programs and state systems.
Based on comments by Gregoire, legislative leaders and versions of the tax plan leaked to news agencies or posted but later removed from a House Web site, the package collects an extra $800 million in taxes to help close a $2.8 billion gap between projected revenues and scheduled expenses. The tax proposal:
•raises the tax on soda pop by the equivalent of about 2 cents a can or 50 cents a case at the wholesale level;
•places the state sales tax on bottled water, candy and gum;
•raises the tax on beer from large national breweries by 50 cents per gallon, or about a nickel for a 12-ounce can (microbreweries would be exempt);
•increases the business and occupation tax on most of the service industry from 1.5 percent to 1.8 percent of gross receipts;
•adds another $1 per pack to cigarettes and similar tax increases to other tobacco products;
•changes systems for taxing out-of-state companies that do business in Washington.
Taxes on soda, bottled water, sweets, beer and the service industries would expire in mid-2013.
Even though the public and most legislators haven’t seen the tax plan in writing, some of those affected are fighting the inclusion of their products or industry.
Friday morning, a coalition of about 50 people representing soda bottlers, grocers and convenience store owners came to Olympia to try to talk legislators out of the soda tax. Most legislators weren’t around, however, because their first floor session in more than a week was rescheduled Thursday evening, from Friday to 2 p.m. today.
Ron Bradford, of the Coca-Cola bottling operation in Spokane, said a slight increase in the sales tax, which was in earlier plans but recently dropped, is fairer: “Overall, I think the people of Washington would accept it if this was a tenth of a cent or two-tenths.”
Joe Gilliam, president of the Northwest Grocery Association, also said a sales tax increase would be fairer than the soda tax and many of the others, which he said put an unfair burden on certain consumers to pay for things the entire state receives through the general-fund budget. “Why should soda drinkers be more responsible for schools or prisons?” Gilliam asked.
Any increase in cost results in a decrease in sales, which prompts layoffs, said Bob Slack, vice president of Coca-Cola Bottling of Washington; the industry could cut jobs by 10 percent.
Gregoire said she doubted the dire predictions of layoffs. A temporary 2-cent-per-can hike is not an unfair request for a discretionary product like soda and “shouldn’t end up in anybody getting laid off,” she said.
Amending the plan isn’t an option because it has been put together in hopes of maximizing votes, Gregoire contended. “You take one piece out, you unravel it. You push another piece in, you unravel it.”
Democratic leaders may not know if they have the needed majority until each chamber votes on the tax plan and the budget sometime in the next four days, she said. If they don’t pass it before the session ends Tuesday, she won’t call them back for a second special session. Instead she’ll make plans for across-the-board cuts; if legislators can work up a new plan, they can bring it to her.
“Time’s up. They need to go home.”
Romney/Paul split weighing on county GOP 
smarg on April 10 at 4:34 a.m.
The guv is only good for counting votes until she wins. She’s crooked as crooked gets.
JBlim on April 10 at 7:33 a.m.
Why do you say that, TJ?
misjustice on April 10 at 7:55 a.m.
Must still be mad over that Dino Rossi thing?
I’ll just be glad when the budget is finalized and we can whine over it, and then move on…
JBlim on April 10 at 8:34 a.m.
Dino stuffed the ballots in the drawer and when Gregoire found them, he accused her of pulling ballots out of the drawer . . .
liarsinnews on April 10 at 8:47 a.m.
About my shopping in Idaho. An old axiom, it pays to shop around. I`m sure Gregoire thought about all the folks in Spokane that will cross state-line to save money.
misjustice on April 10 at 9:13 a.m.
How much is truly saved by driving (cost of gas, wear and tear, etc..) to Idaho?? Their sales tax is 6% plus some cities tack on another 3%. One thing, they also tax food, so at least buy your groceries in WA state…
lewis8457 on April 10 at 9:27 a.m.
I don’t drive to Idaho i just stopped buying the items taxed too high. Now everyone looses my money. Good thinking Gregoire.
smarg on April 10 at 12:50 p.m.
Gregoire did what Demoncraps do in close elections; the angry clown Franken did it too: just keep ‘counting’ (finding) votes until you win.
She is a fraud.
JBlim on April 10 at 12:59 p.m.
Wow, Republicans are such sore losers!
misjustice on April 10 at 3:18 p.m.
Sore winners, too Jblim…
Mr_Bloggy on April 10 at 6:04 p.m.
Rethugs really hate Gregoire because she beat them at their own game in the first election. Hilarious. Rossi’s a crook, but the Repugs don’t care … they march lock step together off the cliff. Just watch the teabagger led movement to nominate Palin in 2012. Guaranteed win for Obama. Guaranteed.
liarsinnews on April 10 at 9:06 p.m.
I wish someone would tell me how to distinguish between the two crooks. If one is a republican and the other is a democrat I really can`t tell the difference. I know one thing for sure, the bums forget who put them in office. No difference.
Shazamm on April 10 at 9:08 p.m.
Hey, here’s an idea. Since the libs are the ones who believe in the “nanny state”, let’s just tax them. I am sure they would be more than happy to cough up more of their hard-earned money to pay for all those programs they think we need.
JBlim on April 11 at 7:34 a.m.
Yeah, Shazamm. Let’s see how far that flies when all your pals have to give up their Medicare and Social Security. And to get it through Congress, the compromise will be to reinstitute the draft for Republicans only so we can all have cheap gas and big cars.
Mr_Bloggy on April 11 at 8:01 a.m.
Sure Shazamm and since right wing neoclowns believe in invading Middle Eastern Islamic nations, let’s just tax right wingers to pay for the military and let’s require them to serve.
misjustice on April 11 at 8:13 a.m.
Since the Rs are soooo independent, and such harrrrrd workers, and soooo pull yourself up by your own bootstraps kind of folks, sure they don’t want to be DEPENDENT on the government for anything; including Social Security and Medicare, those programs just make old people dependent, and lazy, and soft and unwilling to do anything for themselves…
Oh and CORPORATE WELFARE, stops today!!! Yep, no more tax breaks to move your “headquarters” off shore, no more tax incentives to build plants/hire people…
“As you work on your taxes this month, here’s something to raise your hackles: Some of the world’s biggest, most profitable corporations enjoy a far lower tax rate than you do—that is, if they pay taxes at all.”
“…None of ExxonMobil’s income taxes were paid to the U.S. last year.”
“The most egregious example is General Electric. Last year the conglomerate generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion.”
source:http://abcnews.go.com/Business/Tax/ge-exxon-paid-us-income-taxes-09/story?id=10300167
If CORPORATIONS paid their share, perhaps we wouldn’t have to place such a burden on ordinary citizens…
misjustice on April 11 at 8:14 a.m.
http://abcnews.go.com/Business/Tax/ge-exxon-paid-us-income-taxes-09/story?id=10300167
here’s the link again…