Updated: Senate passed first tax package

Yesterday, the Senate started debate on their tax package. Today, they’ve taken it back up.

Sen. Randy Gordon: “We are doing the right things. We’re cutting costs. Contracting the budget for the first time … and we are also working together as a family to do what we can.”

Sen. Dale Brandland: “Driving in from Port Angeles, I thought, I’m just going to let this go,” he said, but he changed his mind. He said at the beginning of the year, he thought this session would be a good opportunity for reform. “Did we do anything in this budget to prioritize what government is supposed to be doing?”

Sen. Pam Roach: “The majority of the people of the 31st district don’t like this budget,” she said. “They don’t like the fact that we’re closing a bit of Rainier School,” she said, though added that she was thankful most of it would be kept open. She said some items in the budget and tax package will not be good for Washington.

Sen. Rosa Franklin: “We are at a time when many of you have not ever witnessed this before. The people who have witnessed and lived during the time of the Depression know what it means to have a great economic downturn. As for taxes, it is never a good time. Nobody ever wants to be taxed. They don’t find it a good time to be restructuring our tax system,” she said, whether it’s good or bad times. “When is a good time to talk about restructuring a regressive tax system and building a more sustainble budget.” She said she didn’t like some things in the revenue package but she will vote for it.

Sen. Lisa Brown: “My own mother, who is 73, works at Wal-Mart to be able to afford her prescriptions,” she said, adding that everyone has been affected by the recession. “We have addressed that problem with reforms,” she said, including reforms to social services and the way state government is administered. “We’ve done reductions in every functional area of state government” that isn’t Constitutionally protected or federal match money. She said the budget and tax package makes good changes. “The vast majority of it is temporary increases in revenue … and it embodies some very significant tax reform,” she said.

Sen. Jim Honeyford said it wasn’t the value of Washingtonians to start new programs — like publicly funded Supreme Court races — while other services are being cut. He also said he didn’t think Washingtonians valued taxing those who don’t have jobs.

Sen. Tim Sheldon: “We’ve talked about reform and privatization of our liquor business,” he said. But, he said, the state liquor distribution center isn’t streamlined and efficient, so it wastes money. “It’s hard to do sometimes but we’ve got to make tough decisions,” he said. Raising taxes will only make that worse, he said.

Sen. Cheryl Pflug: “The physical beauty of this building always reminds me of the heart of the people we represent.” But, she said, she’s almost embarrassed thinking about raising taxes. “Our citizens understand the bottom line fairly easily,” she said. “So they figure out how to get through with what they’ve got and that’s what we should be doing as well. Just like the people at home we should tighten our belts. I have wondered all session why we drive under that giant crane to go to work,” she said, referring to the state data center being built. “Maybe this wasn’t the year to promise new rebates. Maybe this wasn’t the year to create an entitlement in childcare and in early learning and in kindergarten.”

Sen. Linda Evans Parlette said she had to get out of Olympia last night. She said she drove home to Wenatchee and found a letter in her mailbox from a constituent who is a business owner. He said he hasn’t taken a salary for months, he’s laid off 200 people and had to furlough others. She said at this time, raising taxes is absolutely the wrong way to go.

Sen. Rodney Tom said he’s voting against the revenue package. “I don’t think we fully have recognized really where our economy is at … our unemployment is about 9.2 percent, nationwide it’s about 9.5 percent,” he said. “We really do need to step back?… why are we in the retail business? We dont’t sell shoes, why do we sell liquor?”  “We try to be mediocre at everything instead of excellent” at the core functions. He said the budget has a big heart, but he thinks they can do better.

Sen. Janea Holmquist said just a few years ago, the state had a budget surplus. “It really frustrates me that we’ve already proven to the citizens that even in good times, we can’t get our act together,” she said. She said the state should have learend already that it can’t “tax and spend” out of a recession. “What I’m saying to my folks back home? Hang onto your wallets.” She said this bill will send businesses out of state.

Sen. Joe Zarelli: “For those who are thinking of voting for this, I just want you to hear one thing: The supplemental budget … spends almost $400 million in new policy. Forget about the deficit discussion we’ve been having,” he said. He said the tax packages is $900 million — and if they cut out the new spending, they could cut the tax package by half.

Sen. Ed Murray: “I respect the minority party and their position on smaller government,” he said, but he hears in his district that state government needs to be part of the solution. “I don’t know what the voters are going to do in November. I just don’t,” he said. “(Republicans) proposed reforming GAU but then they voted against reforming GAU … they proposed eliminating funding for 728 and then they voted against eliminating funding for 728,” he said, referring to Republicans. “I could go on. And I am tempted to use the line you were for it before you were against it,” he said. He said Republican ideas were worked into the budget.

Sen. Randi Becker: “I did some homework this summer. Every dollar that we increase in spending for healthcare in the state of Washington depletes our K-12 budget … by one dollar. Is that right? No.” She said she’s voting no because she thinks the budget has not been scrutinized sufficiently.

Sen. Phil Rockefeller said the sentiment from his constituents is, Who’s going to protect important state services and the vulnerable. “We’re saying no to tax avoidance … we’re saying yes to leveling the playing field for in-state businesses who have been competing on unfair terms with those out-of-state businesses,” he said. “We’re saying yes to asking businesses who have received preferential rates in our tax system” to help fix the budget problem.

Sen. Don Benton just made a motion to consider each of the 22 tax provisions separately — as opposed to voting for the tax bill once. Lt. Gov. Brad Owen — who presides over the Senate — is considering the ruling now with Senate lawyers.

Owen’s ruling: He said “division” can be used anytime, but the things being voted on must stand individually. “Each part of the question (must be able to) stand on its own.” He said “there is no similar provision for dividing a bill in its entirety. The reason for this seems clear: Unlike an amendment, a bill cannot be divided” because each clause of a bill cannot stand on its own. “Moreover, there is the very real potential for great conclusion,” he said, “were bills to be able to be divided in this manner … the question contemplated for division in this case is the final passage of the bill… for these reasons, Sen. Benton’s call is not in order.” So: They’ll make one vote.

Update: The Senate passed the tax package. It now heads to the House.

Tags: taxes