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April 23, 2010 in City
Gregoire signs package of tax hikes
Gov. Chris Gregoire signs an increase on many consumer goods and business services as a Rep. Ross Hunter (right, in suit) and a crowd of supporters look on, April 23, 2010
(Full-size photo)
OLYMPIA — Gov. Chris Gregoire signed two major tax increases Friday, insisting the state had no choice but to raise taxes on a wide range of businesses and consumer goods to protect key services.
She discounted any potential electoral backlash for Democrats from the tax increases in November, saying the budget isn’t a partisan issue.
“This is not about partisan politics. This is about tough times in the state of Washington,” Gregoire said.
When Washington was in a major economic downturn in the early 1980s, the governor was a Republican and both house of the Legislature were controlled by the GOP. They raised taxes, too, she said.
But voters gave the Legislature back to Democrats in the 1982 election, and defeated Gov. John Spellman in 1984.
“I’m not forgetting that,” Gregoire said. But she did consult with Spellman during the tax discussions, and he said the biggest mistake he made was extending the sales tax to food, a move which was overturned at the ballot box. “That’s why I’ve said let’s go for things that are discretionary.”
Between May 1 and July 1, taxes will go up on a wide range of goods and services.
Cigarettes will cost an extra $1 per pack. Candy, gum and bottled water will be subject to state and local sales taxes (they’re currently exempt as food). Soda pop will cost an extra 2 cents per 12 ounce can. Beer from major breweries will cost an extra 28 cents per six-pack, although microbrewed beer will be exempt from the new tax levy.
The service industry, which includes a wide range of businesses from lawyers and accountants to barbers and musicians, will pay an extra .3 percent on gross revenues. Out of state businesses will see new tax formulas, and companies that supply goods to in-state distributors will continue paying a tax that the state Supreme Court ruled last fall was improperly being levied against one major food supplier, DOT Foods.
Gregoire said Washington residents could avoid many of the consumption taxes by changing their habits — drinking tap water instead of bottled water, for example, or giving up smoking. Or they could continue buying those items and pay the increases, which would find everything from education programs to health care to senior programs: “I believe in the people of the state of Washington. I’m asking them to stand up.”
Republicans, who spent the 60-day regular session and the 30-day special session fighting any tax increases, called them job killers. Sen Janea Holmquist, R-Moses Lake, dubbed it the 7-11 Kwik-E-Mart tax package because so many of the items are the stables of convenience store sales.
“This package exempts things like expensive microbrews, but taxes those items that most impact working class and low-income Washingtonians like canned meat,” said Holmquist. “This is no way to balance a budget.”
Gregoire said Republicans who complained about taxes never proposed a budget that showed what services they would cut without raising taxes: “Everyone could easily say what they didn’t like. It’s easy to sit in the minority and say ‘No.’”
Initiative promoter Tim Eyman has filed a series of initiatives to give voters the chance to repeal most of the taxes if his organization collects enough signatures. Another group has filed an initiative to remove some of the current taxes and replace it with an income tax on people making more than $200,000 or couples making more than $400,000.
Gregoire said she would welcome the debate over an income tax if that makes it to the ballot, and may support it after studying it further.
“I have been opposed to an income tax. This is a different kind of income tax.”
Romney/Paul split weighing on county GOP 
spokanada on April 23 at 8:05 a.m.
Great Idea. I don’t drink bottled water or soda and I don’t eat candy. I don’t smoke either.
I drink beer and I know it isn’t healthy for me so I don’t mind paying the extra tax on the generic crap like bud and coors. Does this mean the microbrews won’t be subject to the tax?
Megan_B on April 23 at 8:27 a.m.
All alcohol should be taxed (so that wine-coolers and brands like Mike’s Hard are included) and it should be at least $1 per 6 pack. If you consume so much alcohol that this would be hardship, then maybe you need to start attending A.A. meetings.
leekinny on April 23 at 8:45 a.m.
I was always surprised junk food was never taxed here.
spokanada on April 23 at 9:13 a.m.
The fatties want us paying for their future health problems associated with candy, beer and smokes.
misjustice on April 23 at 9:40 a.m.
spokanada, re Microbrew; it is my understanding that Microbrews are exempt from the tax increase….
I argee with taxing beer,smokes,soda,candy, etc…none of those items are essential for life…now if only there was a higher fast food tax, also a nonessential and a detriment to health…
DavidBray on April 23 at 9:52 a.m.
Anyone heard about a $100 per vehicle fee coming up? SB(Senate Bill)6379, part IX, Section 901 refers to it. Look it up. We might need to get a campaign going to stop this. Gregoire is a tax and spend (actually, more like spend and then tax) maniac who has no concept of what truth is.
healinhand on April 23 at 9:59 a.m.
Keep it up Govt. your term is almost over.
JWAiken on April 23 at 10:20 a.m.
I guess with all of the campaign donations given to these tax and spend Democrat nannies in Olympia from the Starbuck’s lobbyists and latte stand owners is why lattes aren’t taxed in similar fashion, as candy and soft drinks the same argument can be made on calories or not being necessary.
MrNatural on April 23 at 10:28 a.m.
I understand that some of the revenue will go toward public health funding.
This tax is a good thing I believe…Public health programs have been cut and rendered for the last 15 years and it shows ominously within our community.
BigE on April 23 at 11:23 a.m.
You do know people by nature will do as they choose, eat, drink, smoke, raise taxes, look out after themselves.
Since we are dealing with a tainted gene pool, intelligence is not going to improve, common sense is not common and we continue to follow the media in our search for happliness and attention.
Keep working, keep paying those taxes, work hard, be happy, you are bound to irriate someone.
leekinny on April 23 at 11:25 a.m.
I agree with misjustice on a fast food tax, maybe, geared to the amount of fat in the item. I’m nearly convinced that there’s something in that stuff that’s addicting to those who can’t get away from it.
spokanada on April 23 at 11:44 a.m.
BigE, glad to see you are no longer posting about the size of your Junk. I’m surprised a 50 year old still has that mentality.
nslopeofw on April 23 at 12:11 p.m.
I can’t believe any of you all think its a good idea to tax more. Smokers/Drinkers (of which i don’t belong to) already pay huge taxes for their vises. Perhaps it would be OK with you if we started taxing eggs and milk because they can cause high cholesterol? Or running shoes, because they can cause shin splints? Hell, lets just tax everything, then Aunt Christine can spend, spend, spend.
We don’t need more taxes, we need responsible people in our government, who can cut the budget. These morons will continue to spend, and continue to fund that spending on the backs of the working folks.
Stand up for what is right. NO NEW TAXES. Vote out all that voted for this. Gregoire is a sad excuse for a governor. Perhaps we should change her title to “Chief Spending Officer”.
Dazzeetrader11 on April 23 at 1:02 p.m.
Public health is a good thing. …..social programs is what got the budget in trouble to begin with. There must come a time when people who are on the public’s money take responisbility for their own health. A very small proportion of the population is requiring an increasing amount of tax money to support them. It’s non sustainable…as with Obama’s package. 8% of the population requiring a complete overhaul of a sustem doesn’t make sense.
It’s a dream that increasing money to social programs will result in better health. Money ( other people’s money) will not make people healthy. A better question is why more money in taxation is going to a sector of society that can’t/won’t work and buy their own insurance. Why buy when Gregoire, etc provide it free to them? Although it sounds harsh…it’s beginning to look like an unending black hole.It’s a way of buying votes.
I’m not speaking to those so impaired or destitute that they simply cannot help themselves. Nobody takes issue with support them. This is a very small segment though. Remember too though, when these programs areput in place, huge amount of money goes to the state workers (union jobs) who must manage these prgrams. It’s neverending. Gregoire is asking for more and more money to fund programs without an end. How does she do that? More taxation. It’s a closed circle that must be stopped or bankruptcy will ensue. It’s not the tax…it’s how the money is spent. She should try cutting spending instead of asking for more money from the public.
Next up?more of the same….Remember in November..
BigE on April 23 at 1:23 p.m.
Canada thing, yup it will continue on and on and on, fun for all, all for fun. Have a super good great attention filled weekend, coffee and pie, nosh, talk into the wee hours of the night, not.
mikeln on April 23 at 2:57 p.m.
By cutting spending I wonder if you mean cutting the profit private buisness makes providing services for us. If you look at the size of these profits you would see the kind of gouging we have to put up with. We need elected officials who do not give large profits to thier buddies. We need elected officials who tell these people, do it for less or we will find some one who will.
UniKyrn on April 23 at 3:22 p.m.
So our taxes get hiked, while at the same time they give Microsoft $100 Million in tax breaks and forgive $1.25 Billion in unpaid taxes from previous years.
At least we know who they really care about here.
leekinny on April 23 at 3:37 p.m.
Just exactly what do you mean by cutting spending, nslopeofw ? It’s a common mantra of conservatives that has no specifics.
I can’t think of anyone who wouldn’t want to eliminate fraud and abuse, except, maybe, for those who stop any legislation against it from going forward.
Do conservatives mean something besides that ?
decturkey on April 23 at 4:02 p.m.
I agree about cutting expenditures. The problem is when you get into a government job, you try to start off by doing good things. Esp since I came from the private sector where you were always trying to get the best deals and spend the least amount of money you could while still getting the job done. You quickly learn though, that if you try to work too hard or bring up ideas on how to save money, people will start to dislike you and pretty soon you will be the outcast if you keep doing the “right” thing. People don’t like to stay in budget hotel rooms and they definitely need to get their per diem for meals which is way ridiculous. Another problem with Government is their budgets. The spend it or lose it idea. They are given certain amounts of money for the year. If they don’t spend it, then it goes back to the general fund or state if it’s a grant, which means it will be given to someone else who will spend it. So instead they spend as much of it as they can, even if there is no need for it. This is something that cannot be taken on by someone like me who is lower on the totem pole. If people in authority positions don’t take a stand against this then there will never be changes to how Government will spend their money. And trust me, a lot of purchases made are pretty ridiculous. I know first hand.
JBlim on April 23 at 4:47 p.m.
decturkey, most of what you say is true for any large organization, government or corporate.
dallison on April 23 at 5:23 p.m.
Great plan. Keep bleeding the middle class dry by cutting jobs and taxing them to death.
When there is no more that the middle class or small businesses can give or they are all out of business and unemployed then what?
mikeln on April 23 at 5:39 p.m.
As I have said before, our elected officials cut the budget for the office that investigates fraud and waste in Washington state by 78%. Kind of makes you wonder why?
nslopeofw on April 23 at 5:47 p.m.
leekinny-
1st, I don’t know what conservatives mean. Nor do I understand spend, spend, spend, liberals. I believe in fiscal responsibility. I believe that if you are getting something from the government, you should have to help with the cost. I don’t believe in giving anyone anything for free. That would mean cutting off all recipients of government money that are not paying either in money, or services. I believe ALL people receiving subsidies, welfare, food stamps, etc., should have to perform community service if they cant pay for it.
2nd. You figure out how much you already have taken from taxpayers that year, and your budget for the next year does not exceed it. What you don’t do, is figure you are over budget, so you will just take more money from the people. If it takes a 10% cut across the board, then that is what you do. It is simple.
There are tons of ways to cut non essentials out of the budget. Schools should pay for teaching classes, not other activities. If we have to have bad roads, so be it. If there are too many government employee’s, get rid of them. Its not hard to cut, even though it might be unpopular.
rightwingextreme on April 23 at 6:28 p.m.
THANKS GREGOIRE YOUR STILL THE PRO TAX ANTI BUSINESS PUKE I HAVE ALWAYS SAID YOU WERE! IN CASE YOU DON’T UNDERSTAND HOW THINGS WORK PEOPLE THE PRICE FOR EVERY SERVICE YOU USE ATTORNEYS, ACCOUNTANTS, PLUMBERS, CONTRACTORS, LITTERALY EVERYTHING! IS GOING UP! THIS IS AN ANTI BUSINESS TAX FROM THE SAME TRASH YOU ALL SHOULD HAVE VOTED OUT LAST ELECTION! WHEN WILL YOU LEARN YOUR LESSON WA. GREGOIRE IS A PUKE AND SHE IS HELLBENT ON RAISING EVERY TAX SHE EVER CAN! I LOVE THE PART WHERE SHE SAYS SHE NEVER SUPPORTED AN INCOME TAX! BS YES SHE DID THERE IS MULTITUDE OF RECORDINGS OF HERE SAYING IT IS TIME FOR AN INCOME TAX IN WA. GET RID OF THE COMMUNIST, SOCIALIST PUKE WE HAVE FOR A GOVERNOR!!!
mommie53241 on April 23 at 6:59 p.m.
GARGOYLE IS AN IDIOT. I’ll just go to Post Falls even more now. WaLMart is going in there too so i can shop at Cabellas and at WalMart killing 2 birds with 1 stone. Works for me. Oh i know ill get alot of bad responces for this but its called survival and ya gotta do what ya gotta do to survive.
CONGRATULATIONS ARIZONA!!!!!!!!!!!!
liarsinnews on April 23 at 7:26 p.m.
BigE, We might want to enact legislation to stop these spend thrifts from breeding. Nslopeofw, I agree, totally. And Daisy Minken, bless your soul. I`m sick and tired of picking up the tab for 47% of the population who do not pay one red dime in federal income tax. I`m over 80 years old, and have paid federal income tax every year since 1945. This year was no different. And I`m also sick and tired of hearing how much money a person has to make before paying US income tax. Believe me, I don`t do that well. I pay federal income taxes on the income from my own pension plan that I paid for with my money that was taxed in the first place and receive a small deduction. I`m spending my life savings and it will not be long before my well will be dry. At my age I see the end of the trail and I feel sorry for future generations who will go bankrupt trying to pay off the Obama legacy.. How about taxing the Casino buses every month when the senior panthers collect their SS checks and board the C buses and head for the slots?? Most of them are cry babies and want free everything and it appears could not give two hoots about the folks who someday will have to pick up their tabs.
Dazzeetrader11 on April 23 at 10:12 p.m.
Dick Adams…congrats for your distinguished record of paying taxes. Do you want more taxes? I don’t want anyone to pay more…and you’re in my wishes. The point is that Grehoire and her mirror image (Obama) will continue to plunder till they’re booted. Then and only then will things get a bit more settled. If it’s Socialism you want, you’ll get it. DIck…for your children and grandchildren too. Nobody’s immune but it’s pretty clear the spending will continue and the taxes will too. Remember in November. I’m putting the brakes on and hope some conservative who understand economy will step in and return things to a more normal period. Totally unneccesary are these taxes if spending is slowed. Unions be damned…it’s those unions who sank many companies….and they’ll sink the Corp of Wash St too.
Remember…November’s coming. Stop the spending and throw these fools out. Things will normalize then.
edmc4545 on April 24 at 11:24 a.m.
This governor doesn’t get it, no more taxes. Lay people off, and start in your own office governor. Salaries are to high for state employee’s as it is, lay people off.