Cantwell takes flak for ‘no’ vote on package

U.S. Sen. Maria Cantwell’s announcement that she would oppose a combined minimum wage and estate tax bill sent ripples through Washington state’s political pond Thursday, with Republicans denouncing her decision while labor and low-income advocates applauded it.

Like her seatmate Patty Murray, Cantwell voted ‘no’ on HR 5970, which would have raised the federal minimum wage, remove almost all estate taxes and make other changes in the tax codes.

But unlike Murray, Cantwell is up for re-election and took the brunt of the criticism.

The bill is “a perfect storm for Washington state,” Cantwell said. Some argued a provision in the minimum wage section could have cut wages by as much as $5 an hour for workers who receive some of their money in tips.

Some of the changes in the bill were popular in the state, including a two-year extension on the ability of Washington residents to deduct sales tax on their annual federal tax reports.

Washington is one of seven states with no state income tax, and residents of those states who file for more than the standard deduction can be at a disadvantage if they can’t claim the sales tax.

The sales tax deduction was abolished in 1986, and only recently put back into the tax code, on a temporary basis.

The bill also had business tax credits for research and development, which are favorable to high-tech firms like Microsoft, and tax breaks for the timber industry on some timber sales.

“All these measures can and should be passed on their own,” Cantwell said in a prepared statement. The tax breaks should be permanent, not offered for just two years, she added.

“It is sad that Sen. Cantwell is opposing it and is missing a great opportunity to help Washington,” said Mike McGavick, her likely GOP opponent in November.

McGavick and other Republicans contended that the bill would not have cut hourly wages for workers who rely on tips, citing a Labor Department letter issued Thursday. That conflicts with earlier reports from the Congressional Budget Office, cited by Cantwell and others, which said it could, but the Labor Department would ultimately administer the wage laws.

Washington Citizen Action, a group that advocates for liberal or progressive issues affecting the poor, staged a public “thank you” outside Cantwell’s Seattle office.

Diane Tebelius, state GOP chairwoman, contended she was “caving” to Democratic leaders and costing the state jobs.