Very few people will be affected by estate tax

Here’s a fact that’s rarely mentioned in the debate over reinstating Washington’s estate tax: Very few people would actually have to pay it.

The state Supreme Court in January tossed out the tax, saying it was based on a federal version that’s now suspended. Gov. Christine Gregoire and legislative Democrats, facing the prospect of losing more than $100 million in taxes over the next two years, are rushing to change the law.

But unlike the gas tax – also a big talk topic in the Capitol – the estate tax would hit very few Washingtonians. The governor’s proposal wouldn’t trigger the tax for farms or for estates worth less than $2 million. According to the state Department of Revenue, the tax would apply to about 250 estates a year in Washington.

Another way of looking at that: 199 out of every 200 people who die in Washington each year wouldn’t leave enough cash and property behind to trigger the tax.

One of those pushing for the estate tax (and a state income tax) is Bill Gates Sr., father of the state’s richest man. His argument for both taxes is the same: that the wealthy have usually benefited from public institutions, like good schools and colleges.

“It’s only right to ask them to give something back after they die,” Gates said.

The tax would raise $129 million over the next two years.

Reforms or more of the same?

Much of the attention to election reform has faded now that lawmakers are arm-wrestling over the state budget and gas tax. But the heat goes on in some of the committees that deal with election bills.

On Friday morning – hours before a critical bill deadline – Republicans in the House State Government, Operations and Accountability Committee tried to tack amendments onto ESSB 5499, the main election reform bill this session. Republicans are still smarting over allegations that hundreds of felons and other unqualified voters cast ballots in the November gubernatorial election, which Republican Dino Rossi lost by just 129 votes.

The committee’s majority Democrats rebuffed most of the amendments, infuriating Republicans.

“The citizens out there expected us to reform the system and to stop the things that happened,” said Rep. Lynn Schindler, R-Otis Orchards, her voice shaking with anger.

One of the rejected amendments, she said, would have simply required voters to show identification at the polls.

“This system is based on trust, on encouraging and getting people to register and vote,” responded Rep. Sam Hunt, D-Olympia. “The system was not broken when we came in here, and we do not need to put up excessive walls to registration and participation.”

We could not help but notice …

The legacy of the “Education Governor” took a hit last week, as Senate budget writers axed not one but two of former Gov. Gary Locke’s pet programs. They also pared down a third.

The Reading Corps, a program that matches struggling students with volunteer tutors, was eliminated completely in the Senate’s budget, saving $7 million over the next two years. Locke touted the program relentlessly, reading to schoolchildren frequently in front of news cameras and talking in interviews about how he and his wife read nightly to their children.

Also chopped: the state’s Promise Scholarship program, which gives college grants to top high school graduates. (Current recipients would still get their grants.) Savings: $12.6 million.

Lastly, the Senate trimmed $5 million in ongoing bonuses for teachers who attain national board certification, another pet project of Locke’s.

Locke told the Associated Press’ Dave Ammons that he was stunned by the cuts, which he thinks are unneccessary and unwise. All three programs are worthwhile, he said.

“I know how the budget situation is and that a lot of tough decisions have to be made,” Locke, now an attorney in private practice, said. “But the facts speak for themselves.”

Adding up the budget

“For $6 million, it’s obvious to me that you can completely annoy everybody in the state.”

– Sen. Brad Benson, R-Spokane, referring to the ubiquitous ads during last fall’s governor’s race. Both major candidates spent $6 million. Benson was arguing that the state’s two-year, $52 million allocation for anti-tobacco advertising was more than enough to get the message across. He thinks it should be cut in half.