Archive for tax

House committee approves revised tax package

By | April 23, 2013 | 0 Comments

A proposal calling for $900 million in tax increases was approved by Democrats in the House Finance Committee on Tuesday.

Supporters say the tax package is necessary to funnel more money into the state’s public schools, but Republicans who voted against the measure say the plan will hurt businesses and the state’s economy.

House Bill 2038 passed on an 8-5 vote along party lines. The measure ends certain business tax exemptions and extends some taxes set to expire this year. Parts of the original proposal were dropped, including tax extensions on the beer industry, janitors, insurance agents and stevedores.

“Asking everyone to contribute to our quality of life, our quality of education for 1 million students in every community in our state is hard work. It’s tough to do. Closing just a few is hard, but investing in education is essential,” said committee chair Reuven Carlyle (D-Seattle).

Republicans in the committee said the Legislature does not need new taxes to meet a court mandate to fully fund the state’s education system.

“We don’t need new taxes to balance our budget,” said Rep. Ed Orcutt (R-Kalama). “We’ve got plenty of money for education. If there is any courage needed, it’s the courage to fund education first and to say no to some other people.”

The tax measure will now head to the House floor for a vote.

Categories: tax, WA House

Eyman proposes new initiative to limit tax increases to one year

By | April 22, 2013 | 0 Comments

Voter initiative activist Tim Eyman released plans Monday for another attempt to require a two-thirds majority for the Legislature to raise taxes. This time he wants to change the state’s constitution.

In February the Washington State Supreme Court ruled in a 6-3 decision that initiative 1185, which required the Legislature to have a two-thirds supermajority to implement any new tax hikes, was unconstitutional.

“When we tried to do it with 1185, they said we would need to make an amendment to the constitution to make it happen. So that’s what we’re doing,” Eyman said Monday.

Under the proposal, sent in an email to the governor, legislators and Eyman supporters throughout the state, the new initiative would mandate:

  •  Advisory votes every November asking voters if they support a two-thirds majority to raise taxes as a constitutional amendment.
  • Any new tax increases the Legislature adopts would be limited to one year.
  • Voters’ pamphlets would be required to include information about the governor’s and legislators’ voting records on tax increases under their picture.

The initiative also includes an escape clause to nullify these three policies if state legislators put a two-thirds constitutional amendment on the ballot for voters to decide on.

Eyman said he expects the difficulty of getting the more than 300,000 signatures required to get the proposal on a ballot by November will likely depend a great deal on what legislators do at the end of the current session.

“If they go nuts with tax increases over the next couple weeks, that will probably make it easier,” Eyman said. “If you don’t want the beehive to get upset, don’t kick it.”

Categories: Public Policy, tax
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GOP leaders skeptical of Inslee’s plan to close tax breaks

By | March 14, 2013 | 0 Comments

Republican leaders expressed skepticism this week over a plan being floated by Gov. Jay Inslee to shut down certain tax incentives to help pay for a State Supreme Court mandate to increase education funding.

During an interview with TVW on Wednesday, Inslee said he plans to roll out proposals to close certain tax breaks.

Majority Coalition Leader Sen. Rodney Tom (D-Medina) said the eventual impact on the budget would be minimal.

“In conversations with the governor, he’ll come out with a number such as a $1 billion. I remember when there was 32 Democrats in our caucus and we came out with that same song and dance, but at the end of the day it was a pretty minimal number,” Tom said during a press conference Wednesday.

Inslee said during the interview that closing “illicit, unwarranted, obsolete, unfair corporate loopholes” is favorable to placing more of a tax burden on “regular consumers and people going to work.”

House Republican Leader Richard DeBolt (R-Chehalis) says the real problem lies in the state’s tax and regulatory system, which scares business away.

“Don’t forget tax exemptions are put in place because businesses find our climate not competitive with other states,” Debolt said. “Our caucus has proposed rolling some of these exemptions off. We have not been afraid of it, especially when they don’t function the way they are supposed to. But if we really want to do something about exemptions, all we have to do is correct the regressive environment we have.”

Inslee’s office has not released any specifics about which exemptions might be on the chopping block.

The Legislature is tasked with closing a budget shortfall, which grew to $1.3 billion Thursday after new numbers were released by the Washington State Caseload Forecast Council. That does not count additional money lawmakers must find to meet last year’s McCleary decision. Some say that will take another $1 billion for a down payment on fully funding education.

New state revenue forecast numbers will be released next week.

Categories: tax

Two-thirds ruling, Hanford leaks and housing vouchers on ‘Legislative Review’

By | March 1, 2013 | 0 Comments

Here’s our recap of Thursday’s legislative activities on “Legislative Review” — including the Washington Supreme Court ruling that the two-thirds supermajority requirement to raise taxes is unconstitutional. We also have highlights from a Senate work session about the Hanford nuclear leaks, and debate over a bill that would make some changes to a program that provides housing vouchers to recently released sex offenders.

Categories: Courts, Criminal Justice, tax

State Supreme Court strikes down ‘supermajority’ vote for raising taxes

By | February 28, 2013 | 0 Comments

The State Supreme Court has struck down an initiative passed by voters that requires a two-thirds “supermajority” vote of the Legislature in order to raise taxes.

In a 6-3 decision issued on Thursday, the court said the requirement violates the state constitution. The court said the constitution makes clear a bill becomes law when it is passed by a simple majority of the Legislature.

In the majority opinion, the court wrote:

Our holding today is not a judgment on the wisdom of requiring a supermajority for the passage of tax legislation. Such judgment is left to the legislative branch of our government  Should the people and the legislature still wish to require a supermajority vote for tax legislation, they must do so through  constitutional amendment, not through legislation. 

Thursday’s decision comes after a group of education advocates and state lawmakers brought a lawsuit against the 2010 two-thirds initiative. After a Seattle judge ruled the initiative violated the state constitution, it was appealed to the state Supreme Court. The court heard oral arguments in September.

Voters have passed initiatives requiring a two-thirds “supermajority” vote of the Legislature in order to raise taxes several times over the last decade, including Initiative 1185 last November.  The Legislature has been able to suspend those rules and pass taxes with a simple majority.

Gov. Jay Inslee released a statement saying the state Supreme Court “did the right thing” in issuing the ruling.

“The supermajority requirement gave a legislative minority the power to squelch ideas even when those ideas had majority support. That is inconsistent with our fundamental form of representative democracy,” Inslee said.

Rep. Laurie Jinkins (D-Tacoma) was one of the plaintiffs in the lawsuit. She said at a press conference Thursday that the ruling gives the state more options to fund education, citing an idea last year that would have funded all-day kindergarten by ending a tax break for out-of-state shoppers.

“We weren’t able to do that because it required a two-thirds majority. So I think it definitely puts a lot of those things on the table — a real discussion,” Jinkins said.

During a press conference called by Senate Republicans, Sen. Don Benton (R-Vancouver) said the voters had made their position clear at the poll five times and the court’s decision overruled their will.

“Their messages is they don’t trust their legislators to keep taxes in check with a simple majority. They want to make darn sure that it is absolutely the last resort,” he said. “The citizens want a two-thirds majority on taxes increases because they want this legislature to look at other options other than the easiest one.”

Republican lawmakers have introduced a bill in recent weeks that would amend the state constitution to make the two-thirds majority requirement permanent. Any amendment to the constitution would itself require a two-thirds vote of both houses.

Sen. Benton said the bill has the support of all 25 members of the Senate Majority caucus, which includes two Democrats. It passed out of the Senate Ways and Means Committee on Thursday, and Benton said he expects it to get a floor vote within a few days.

“We are absolutely committed. The question is, do we have eight Democrats on the other side that will support the will of their citizens? That’s the issue facing the state Senate,” Benton said.

A constitutional amendment is unlikely to pass in the Democratic-controlled House. Rep. Jamie Pedersen (D-Seattle) said Thursday he would be open to having a “rich discussion” about putting some limitations on raising taxes, but opposes a constitutional amendment.

Rep. Gary Alexander (R-Olympia), the House Republican budget writer, called the ruling “extremely unfortunate” for the state’s taxpayers.

“I urge the majority party in the House to join with House Republicans to adopt a new constitutional amendment so that we can, once and for all, put this issue to rest and get on with responsible governing,” he said in a news release.

Categories: Courts, tax

House Democrats release $10 billion transportation plan

By | February 20, 2013 | 0 Comments

House Democrats unveiled a $10 billion transportation package on Wednesday that would be fueled by an increase in the gasoline tax and an increase on car tab fees.

The proposal would increase the state gas tax by 10 cents (2 cents a year over five years) and make car tab rates equal to 0.7 percent of the vehicle’s value. The proposal would also add a $25 fee on sales of bicycles over $500.

“Gas tax is about the only revenue stream you have right now,” Rep. Judy Clibborn (D-Mercer Island) said during a press conference Wednesday. “If we don’t have an investment for the jobs and economic vitality I think at some point there is a cost to not doing the gas tax.”

Washington’s gas tax currently ranks the ninth-highest in the nation. The proposal would eventually raise it to 47.5 cents per gallon.

The package identifies new or continued projects and targeted investments into the state’s transportation system, including improvements to State Route 167, funding for the Interstate 5 Columbia River crossing and the state ferry system.

House Republicans, who have been wary of any new tax proposals, were quick to criticize the new plan.

“House Republicans understand there are maintenance demands and new projects needed in the future,” Rep. Ed Orcutt (R-Kalama) said in a news release. “But any debate on transportation must begin with reforms, not tax increases on struggling workers and families, and not new project lists to entice votes in the Legislature.”

Gov. Jay Inslee released a statement saying transportation is “vital to the environmental and economic health” of the state.

“We can’t afford to not take action and this is a job I expect the Legislature to accomplish. I’ll be working with legislators on both sides of the aisle to craft a package that they can send to my desk for approval,” Inslee said.

Categories: economy, tax, transportation

Distributors, small business owners divided over liquor bill

By | January 24, 2013 | 0 Comments

Photo from Wikimedia Commons

The players in the state’s liquor business – both big and small – were in Olympia on Thursday to begin a debate about proposed changes to the liquor privatization law.

House Bill 1161 would lift a 17 percent fee retailers are required to pay on gross hard liquor sales. Distributors aren’t required to pay the tax.

Business owners who took over old state liquor stores last June say the state started taxing them out of business when the new fees were imposed.

“We are left in a market where we cannot compete with distributors who have stolen all of our business,” said Julie Granas, a liquor store owner from Leavenworth.

Restaurant owners argue the system limits their buying options, increasing operating and consumer costs.

“When I make my fresh meatballs every week, I can buy tomatoes from whoever gives me the best price and the best tomatoes,” said Monique Trudnowski, owner of  Adriadic resturaunt in Tacoma. ”That’s why I’m still in business after five years.  If I don’t have that same opportunity with my liquor and spirits, I anticipate I may close.”

Distributors say they invested heavily in their businesses after voters passed Initiative 1183 and their profits would suffer under the proposed bill.

“Our concern with this bill is the fact that these distributors… have paid huge sums of money in order to be distributors in this state,” said Michael Gonzales, a representative for the wine and spirits industry in King and Pierce Counties. ”This bill looks like it would also allow Costco to be a distributor, but not be on the same playing field, not paying the same fees in order to distribute to bars and restaurants.”

The bill’s sponsor, Rep. Ross Hunter (D-Medina), said the legislation made practical sense and was surprised at the overflow crowd at the Government Accountability and Oversight Committee hearing.

“It’s a relatively simple bill. We are trying to have a fair application of taxes. The consistency is the issue, not the amount of tax,” Hunter said.

The bill would also ease restrictions on the number of transactions and amount of liquor that can be purchased.

 

Categories: tax

Public hearings set for workers’ comp rate

By | September 18, 2012 | 0 Comments

The state Department of Labor and Industries announced earlier this week that workers’ compensation rates won’t be going up next year — a move widely cheered by the business community. We’ll have more on the surprising decision on this week’s edition of The Impact, including an interview with director Judy Schurke. It will air Wednesday at 7 & 10 p.m.

The department is holding six public hearings before announcing the final rate in December. Here’s the full list:

Tukwila, Oct. 23, 10 a.m., L&I office.
Bellingham, Oct. 23, 1 p.m., Public Library Lecture Room.
Spokane, Oct. 24, 10 a.m., CenterPlace Event Center.
Richland, Oct. 25, 10 a.m., Community Center Activity Room.
Tumwater, Oct. 26, 10 a.m., L&I Auditorium.
Vancouver, Oct. 29, 10 a.m., Red Lion at the Quay, Quayside Portside Room.

And if you still want to know more about workers’ comp, here’s an impressive little video created by the Department of Labor and Industries (kudos to the artist): (more…)

Categories: tax

State plans to keep workers’ compensation rates flat in 2013

By | September 17, 2012 | 0 Comments

Workers’ compensation rates likely won’t go up next year, a result of higher-than-expected savings from major reform legislation passed in 2011.

The state Department of Labor & Industries said today those reforms will save the agency $1.5 billion over the next four years, $300 million more than expected.

“Had the governor and the legislature not adopted the 2011 reforms, I wouldn’t be making this proposal today,” department director Judy Schurke said in a press release. The final rate will be announced in December.

By keeping the rate flat, the department said it expects to be able to put an extra $82 million into reserves.

The news came as a surprise to some expecting a rate increase as high as 19 percent. Earlier this summer, the department proposed two dozen scenarios that would rebuild the reserve fund through various rate increases.

Schurke said at today’s meeting of the Workers Compensation Advisory Committee that some of the department’s proposals were “construed as a 19 percent increase.”

But, Schurke said, “that was never intended to be the department’s proposal.”

With the $82 million boost, the department’s reserves are expected to be at $682 million by the end of the year — a number that Schurke said is “critically low by industry standards.” It puts the reserves below 6 percent of liabilities, and Schurke said she aims to raise that to 14 percent within the next ten years.

The state-run workers’ compensation program provides insurance to employees injured on the job, covering medical costs and lost wages.

Both the business owner and worker pay into the system, with hourly rates that vary depending on the field. For example, those in the construction industry pay an average of $1.91 an hour per employee, while rates in the clerical sector are about 20 cents an hour.

“I’m very relieved,” said Bob Kagy, president of ABC Printing in Lacey. His printing shop employs 18 people, and workers’ compensation costs about 93 cents an hour per employee.

Still, Kagy said he would like to the see the system privatized, like it is in Oregon and 46 other states. He said Washington’s workers’ compensation system puts him at a competitive disadvantage compared to printers in neighboring states and online.

Categories: tax

Happy tax day: Round-up of new changes to the state’s tax policy

By | April 17, 2012 | 0 Comments

In honor of tax day, I thought it would be worthwhile to take a look a few tax changes the Legislature adopted this year. Gov. Chris Gregoire floated the idea of a temporary half-cent sales tax as a solution to the budget shortfall last year. That idea failed to gain support, as did another proposal she suggested which would have streamlined B&O taxes, or business and occupation taxes.

Here’s a look at some tax changes that did pass:

Local sales tax collections
This was the $238 million solution that helped break the logjam over the budget. It’s been widely called an “accounting maneuver,” but it basically works like this: The state collects sales tax revenue, which lands in the general fund. A share of that money belongs to local cities, counties and other agencies. Currently, their share is transferred to a separate account every day and then redistributed at the end of the month.

Under the new legislation, the money allotted for local governments will stay in the general fund about a month longer. They will still get their distributions at the usual time, but it gives the state a boost in its monthly cash flow. During floor debate on the issue, lead Democratic budget writer Rep. Ross Hunter said it is a way to “modernize” the way the state manages its money. It easily passed the House and Senate, and is awaiting the Governor’s signature.

Roll-your-own cigarettes
Washington state has the fifth highest cigarette tax in the nation, at $3.025 per pack. That means smokers in the state can expect to pay as much as $9 for a pack of cigarettes at the store, but some have found a way around that by using roll-your-own cigarette machines. Customers buy the tobacco and papers, then put it in a roll-your-own cigarette machine found in 65 stores statewide. In about 10 to 20 minutes, they’ve got rolled cigarettes for half the price.

New legislation expands the definition of cigarettes to include roll-your-own, and they will be taxed at the same rate as prepackaged cigarettes starting July 1st. The bill drew heavily debate in the Legislature, but ultimately passed. Opponents said it would put stores out of business and devastate small business owners, who paid about $30,000 apiece for the roll-your-own machines. Supporters say it will deter smoking, which improves public health while also bringing in an estimated $12 million in new revenue – a number that could change depending on how consumers react.

Eliminate tax deduction for big banks
Washington state doesn’t charge taxes on the interest that banks earn on loans for first mortgages. The Legislature voted to end that tax deduction starting July 1st for big banks that operate in more than 10 states. The change is expected to bring in about $15 million a year.

New tax breaks
While banks lost a tax deduction, other businesses got new or extended tax breaks. In an effort to attract more film and TV production companies to the state, the Legislature revived the Motion Picture Competitiveness Program, which expired last July. It gives filmmakers a 30 percent rebate off the money they spend in the state on hiring local crews and other expenses.

Also, craft distilleries that make and bottle their own spirits will get an exemption from paying a retail license fee of 17 percent on bottles they sell in tasting rooms. Businesses that operate processing facilities for fruits, vegetables, dairy and seafood will get an extension of a B&O tax exemption until 2015.

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Repeal of out-of-state sales tax exemption fails to get a supermajority vote in House

By | March 8, 2012 | 0 Comments

A proposal debated in the House that would have repealed the retail sales tax exemption for out-of-state shoppers failed to get a supermajority vote, which is required to raise taxes. Revenue from the bill would have been redirected to help pay for the state’s all-day kindergarten program.

The vote followed a long debate. Rep. Laurie Jinkins, D-Tacoma said she’s heard lawmakers talk all night about “funding education first,” and this bill is an opportunity to do that. “We should not be handing out money to people who don’t live in this state above educating our children,” she said.

Opponents said it would hurt the economies of border cities, particularly cities near Oregon, a sales tax-free state. “I look at the state of Oregon out of my window and it is a constant reminder we have to be careful of tax policy,” said Rep. Ed Orcutt, R-Kalama. He says some businesses in Vancouver generate as much as 50 percent of their retail sales from Oregon residents, and the bill would force layoffs and store closures.

Rep. Andy Billig, D-Spokane, said he spoke to retailers in his community and they said it would have “no impact or minimal impact” on business. He said it would exempt car sales, which was a concern raised by other lawmakers.

The vote was 51-47 — a constitutional majority, but not the two-thirds vote needed to pass, said Speaker Pro Temp Jim Moeller.

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Roll Your Own cigarettes bill passed the House, now on to the Senate

By | March 6, 2012 | 0 Comments

The bill to add the state cigarette tax to “roll your own” cigarettes is getting a vote in the House now. Watch live on TVW.

Rep. Cary Condotta said the bill will close 65 to 70 businesses across the state. “There is no question here what they’re doing,” he said, for only about a million dollars in revenue. “No thank you, Mr. Speaker. Not for me.”

But Rep. Chris Hurst, a Democrat from Enumclaw, said the bill will protect jobs — not take them away. He said RYO businesses often advertise cigarettes at half price and that puts all the other businesses around them at risk. “They’re right on the margins right now, Mr. Speaker. They’re barely getting by. These grocery stores legally sell tobacco and that’s a big part of their business,” he said.

Rep. Matt Shea asked how many votes the bill would take to pass, since it increases revenue to the state. Rep. Jim Moeller, acting speaker, said that since roll-your-own cigarettes are already included in the definition of cigarettes under state law, there was no need for a two-thirds vote.

The bill passed 67 to 30 and now heads to the Senate.

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Capital gains tax, other reforms proposed by freshman House lawmakers

By | February 29, 2012 | 0 Comments

Washington state relies heavily on sales tax, which some say is regressive and unpredictable — particularly during a recession. On Wednesday morning, a group of 13 freshmen House Democrats held a press conference to introduce several proposals that they say would help reform the state’s tax code to make it more fair.

One proposal would end the sales tax exemption for out-of-state residents who shop in Washington state. Another bill would impose a 5 percent capital gains tax. And a third measure would allow hundreds of tax breaks to expire over the next 10 years.

Following the press conference, a House committee held a hearing on a handful of the bills.

Rep. Laurie Jinkins, D-Tacoma, is the prime sponsor of the bill that would tax capital gains — or profits that most commonly come from the sale of corporate stocks and bonds. She says that the state’s reliance on sales tax means that the poorest residents are bearing the heaviest tax burden. “Capital gains is far more fair than the current system,” she said.

Supporters say 42 other states have a capital gains tax, and it would give Washington a steady revenue stream — unlike the sales tax. Mary Moore from the League of Women Voters said during the hearing that it could help the state avoid the “feast or famine” budget problems that have become all too common.

Opponents say that the measure would be detrimental to businesses who need access to capital to expand and grow their operations. They also warn that it could open the door to further tax increases. Washington does not have an income tax, but Amber Carter of the Association of Washington Business said the measure could be the beginning of one.

“Not only does it create a whole new tax, but it creates a whole new layer of appeals, filers, tax code and law that has not been fully tested in our state,” she said.

A House committee is scheduled to vote on it Thursday.

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Bill dealing with roll-your-own cigarettes heard in the House

By | February 7, 2012 | 0 Comments

A bill heard by the House Ways and Means committee would qualify the product of a roll-your-own cigarette machine as a cigarette and the retailer as a manufacturer. This would add certification and taxing requirements to roll-your-own, or RYO, cigarettes and the retailers that provide these machines.

Supporters of the bill said RYO machines can be used by retailers as a way to sidestep taxes and regulations, and that retailers with these machines should be counted as a manufacturer. They say increased regulation is fair and will generate revenue for the state.

Tk Bentler, from the Washington Association of Neighborhood Stores, said this bill is needed to level the playing field for cigarette retailers.

“We have invested in our land, our brick-and-mortar stores, and we play by the rules that you guys set here in the legislature. And, we have a company that has gotten very creative and selling cigarettes at $36.50 a carton. You’ll hear testimony that this is going to cost 250 employees and 65 store outlets throughout the state — well I can assure you that we have 4,000 stores throughout the state, thousands of employees that are playing by the rules,” Bentler said.

But opponents of the bill say it could result in the closing of stores and a loss in jobs. They say it puts a higher tax burden on these cigarettes and that roll-your-own customers would likely just start rolling their own cigarettes at home, instead of purchasing traditional cigarettes in stores.

Representatives from roll-your-own distributors and stores said their industry is playing by the rules and this bill would put an unfair tax burden on these cigarettes.

“It’s been claimed in about every committee we’ve been in that we are not playing by the rules, or that we are committing tax evasion. It’s just not true — we do play by the rules — we have retail stores who pay every single tax that is applicable to our tobacco. We’re not breaking any rule, and by classifying us as manufacturers it does effectively shut down our business,” Joshua Baba, a RYO distributor, said.

The committee hasn’t voted on the bill.

Governor announces proposals to streamline B&O taxes, business licenses

By | January 5, 2012 | 0 Comments

Gov. Chris Gregoire announced a plan today that would streamline the way that small businesses pay local taxes and apply for a business license.

Under her proposal, Washington state would become the sole collector of all local and state B&O taxes, or business and occupation taxes. It would also create a single state website where businesses can obtain a business license, eliminating the 50 or so websites that are now run by individual cities.

Currently, if a business has operations in more than one city it may have to pay the B&O taxes to multiple cities  – a system that is “at its best complicated, and at its worst a nightmare,” Gregoire said. Her proposal would bring the collection of all B&O taxes under the state’s jurisdiction, much like the sales tax.

Gregoire said she is also issuing an executive order to determine if the restaurant industry has too many state and local regulations that are hindering business. ”Do we need all these inspectors? Do we give conflicting advice? We’ll find out the answers so that businesses can get on with their bottom line, ” Gregoire said.

Gregoire is also directing $1.1 million in federal funds to specific job training programs, including:

  • Training 460 veterans for a careers in manufacturing
  • Providing paid internships and professional training to at-risk, low-income youth
  • Offering on-the-job training for 300 women and minorities working in the construction and transportation sector

 

 

Want more info on the tax press conference today? Here it is in full

By | April 23, 2009 | 0 Comments

Categories: Budget, Public Policy, tax
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Income tax, candy tax, sales tax: Let’s review

By | April 23, 2009 | 0 Comments

If you prefer the long version of what was said at the noon press conference in the Senate Democratic caucus room, scroll down and read the dispatches posted in real time. I’ll also post the video soon.

If you don’t have time, here’s the basics:
- Senate Majority Leader Lisa Brown said the “high-earners” income tax is dead for this session.
- Sen. Jeanne Kohl-Welles said she’ll continue to fight for it until Sine Die — scheduled for Sunday.
- Brown said she was unsure whether the House would pass the .3 percent sales-tax-for-healthcare bill. If they did, she said she’s unsure whether it would come up on the Senate floor.
- Brown said the budget should come out today, possibly very late. It will come out of the House first, she said. It then may or may not be referred to the Senate Ways & Means committee.
- Sen. Adam Kline said he believes people are increasingly realizing that the state’s tax system is unfair.
- Sen. Jeanne Kohl-Welles said she is introducing a bill today or tomorrow to extend the sales tax to candy and gum. The money would go to child healthcare and immunizations, which she said were damaged in the budget. She reminded everyone that bills introduced this session are still alive next session.
- Kohl-Welles also said she thinks an income tax that could withstand Constitutional challenges is on the horizon.

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Democrats to hold press conference on need for taxes

By | April 23, 2009 | 0 Comments

Today at 12:15, Senate Majority Leader Lisa Brown will hold a press conference on the “unfair tax system” with Sens.: Joe McDermott, Adam Kline, Jeanne Kohl-Welles and others. TVW will be there and air the press conference as soon as we can. I’ll keep you updated here.

Categories: Public Policy, tax
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Here are the tax videos from this morning

By | April 21, 2009 | 0 Comments

Since you (probably) couldn’t be there, I’m posting the videos from this morning — both the House Health and Human Services Appropriations Committee and the subsequent Republican caucus rebuttal to the tax vote — here.

The committee — particularly the discussion before the vote — is interesting stuff because many of the lawmakers on the committee take a moment to describe the philosophy behind their vote. Enjoy.

On the subject of taxes, I mentioned in an earlier post that Rep. Gary Alexander didn’t think people would die if a tax wasn’t passed but, he said, he did believe people would lose their jobs. Joe Turner from The News Tribune has a mathematical explanation of that here.

Categories: tax

Why not send it to voters?

By | April 21, 2009 | 0 Comments

Brad Shannon asked: What’s wrong with letting the voters decide?

Rep. Gary Alexander: “The question of any kind of tax increase, to me, does not make any sense. To go out and ask the voters … is only for one reason: Because they don’t have the votes to do it here.” He also said he was elected by the voters to lead, and that he thinks passing the package to voters isn’t leadership.

Shannon asked if that was a philosophical change, citing previous referenda that Republicans have voted on in the past to send to the public.

Rep. Richard DeBolt said the issue is that it’s “offensive” to put healthcare to voters because it’s the item that polled the best.

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