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 TUESDAY, FEBRUARY 9, 2010 3:15 pm |
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Local News 
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New taxes possible in 2010 Two top Democrats say a huge drop in revenue means tax hikes may be needed. OLYMPIA — Another crushing drop in expected revenues has pushed the state’s projected budget shortfall to $2.6 billion, prompting a key Senate Democrat on Thursday to say new taxes should be considered in 2010.A report issued Thursday shows monthly tax collections continue to fall well below estimates and receipts will be $760 million less than what the state’s chief forecaster, Arun Raha, predicted in September. Raha on Thursday described the problem as a “revenue-less” recovery from a recession that’s pushed consumers into saving. The latest drop in tax income means the shortfall is up to $2.6 billion in the budget that runs through June 30, 2011, according to the governor’s budget office. For Gov. Chris Gregoire, this represents the amount of red ink she needs to erase in her proposed supplemental budget to be delivered to legislators next month. By law, Gregoire’s plan must be balanced without the use of new revenue from tax or fee increases. She said earlier this week she is looking to cut spending, tap into reserves and transfer a few million dollars from other accounts into the general fund used to keep government operating. State Sen. Rodney Tom, D-Medina, an architect of the current budget, said lawmakers need to look at existing and new “sin taxes” and possibly close some tax loopholes as well as reduced spending. A possible new tax could be levied on candy and other sweets. Rep. Ross Hunter, D-Medina, chairman of the House Finance Committee, said only with such a combination of approaches can the Legislature cover the gap. “We’re not going to raise $2.6 billion in taxes,” he said, adding it’s unlikely that amount of money can be made up with cuts either. Republican lawmakers resolutely oppose raising taxes in the manner suggested by those members of the majority party. “We cannot afford to raise taxes on our working families and businesses,” said Ed Orcutt, R-Kalama. A year ago, Gregoire faced a projected gap of $6 billion between the amount of incoming revenues and the costs of maintaining government services plus paying for new programs and pay hikes. It grew to $9 billion by this spring. Gregoire and the Democrat-controlled Legislature eventually balanced the bottom line by using federal stimulus money, transfers within the budget and $3.3 billion in cuts. The Legislature convenes Jan. 11 for a scheduled 60-day session. Raha’s next revenue forecast will come out in February and shape lawmakers’ budget-writing efforts. Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com. |
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- A tidy lawn could be law in Lynnwood
- Snohomish County's bargain housing won't last
- Boeing's 747-8 takes off after weather delay
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(11) - A tidy lawn could be law in Lynnwood (10)
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- Lynnwood sets height limit on grass: 8 inches (4)
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- Business Licences Feb. 2010
- Technology tips for launching your own business
- Business Events Feb. 2010
- Tech Talk: No excuse today for going without a Web site
- State already raising fees and rates that restrict business growth
- Some legislators again targeting people’s initiative petition rights
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COMMENTS
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They say short by 2.6 Billion. Last summer their NEW state math left them short by 8 Billion. Let's get the facts straight. It will be 6 BILLION by next summer. I guess Queenie assumes that the economy will be fixed by magic? Hell, most economists (and even Odumbo) are talking about a double dip recession coming (or even worse, perhaps). Give these morons in Olympia your wallet now and they will be back next summer to steal your car or house. Queenie--the answer is cut, cut, cut, cut--learn to live within your means. I hav to on a daily basis.
K Dog | Nov 20, 2009 2:13 pm | 0 replies | Request removal
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No new taxes on Washington State citizens, particularly not on home owners, senior citizens, or the legitimately disabled.
Search out and deport illegal aliens and their progeny. Immediately end all services to these individuals (social services, education, anything but critical, life-saving medical aid). Require government issued, photo ID for any such service. Allow their countries of origin to pay the expense of supporting them. Save some tax dollars QUICKLY.
As an afterthought, outlaw the Democrat and Republican parties.
Veritas Splendor | Nov 20, 2009 2:12 pm | 0 replies | Request removal
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Those who espouse cutting services are truly Un-American and should be shamed back into the hole they crawled out from. As a homeowner in Everett, I support a state income tax so that business pays their fair share. The greedy who support more cuts must be shamed at every opportunity for they have no regard for their community, their country or humanity. Government cannot function with a loss of revenues due to the Republican recession. State government has been cut and cut and cut to the bone. It's time to pass a state income tax.
Anthony Vicari | Nov 20, 2009 1:00 pm | 1 replies | Request removal
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Anthony Vicari,
"I support a state income tax so that business pays their fair share." It is obvious that you don't own or have not run a business.
Have you heard of the B&O tax in this state? Businesses are taxed on their gross REVENUE, not on their net profit after expenses. Sure, the state has given tax breaks to some employers but the majority of small and medium businesses have received NO subsidies or breaks from Olympia.
Another thing. Sure, Olympia may introduce a state income tax. Well, guess what? California has BOTH sales and state income taxes. The (faded) Golden State's unemployemnt rate has gone up from 12.2% to 12.5%. Is that what you are envisioning for this state as well?
Tom C | Nov 20, 2009 1:17 pm | 0 replies | Request removal
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Someone should set up a site like this and coordinate it with our "representatives".
To those that say we will lose needed services I say "too bad". We all have to reprioritize when our incomes change, so should the state. Stop wasting money by enforcing stupid (and I mean STOOOPID) laws. Enforce BARE NECESSSITIES, and by that I mean to include cutting back on Law Enforcement, Courts, and all government departments.
DO NOT TAX ME FURTHER ... I WILL REFUSE TO PAY IT.
Brad Ashforth | Nov 20, 2009 12:07 pm | 0 replies | Request removal
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2.6 billion in lost revenue? Cut 2.6 billion in state spending. Raising taxes at this point will only discorage spending by those taxed and guess what? Less revenue.The Govnah needs to be a leader and make the decisions on where those cuts come from and then take responsibillity for it.
Mark Butschke | Nov 20, 2009 11:07 am | 0 replies | Request removal
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The budget crisis will get MUCH worse, and here's but one reason. We will lose jobs that require rare earth metals that America no longer produces.
Here is a NYT article I suggest you read. nytimes.com/2009/09/01/business/global/01minerals.html?_r=1 It illustrates the fallacy of government creating thousands of green energy jobs, without a commensurate willingness to produce the raw materials necessary to make the devices. America lost its resource production capacity when environmentalism forced out that type mining. Without these 17 rare earth metals, there is little we can do to create US jobs making the devices. Further, our aerospace and defense industries, advanced electronics, lasers, data storage, and advanced batteries are all held hostage to a growing crisis.
Having government spending our money to push us into increasing consumption of decreasing raw materials is suicidal. Please remember this as the debate rages about how Washington State spends taxpayer money.
2010 - VOTE to put common sense into government.
Randy Dutton | Nov 20, 2009 10:56 am | 0 replies | Request removal
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Reform marijauna laws, tax the sale of it. Its the largest cash crop in the US, and from what I understand Washingtons strain of marijauna is dang good stuff. Tax religeon. If Casey Treat can fly by helicopter to his mega churches, tax him. Boom budget problem solved and maybe the next we can all get a tax rebate.
Mike Flavin | Nov 20, 2009 10:18 am | 0 replies | Request removal
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We have all decided the level of service we want from our state government. They are simply trying to fund these services. How do you really expect the state to do more with less? Do you expect them to waste time searching for coupons before purchasing toilet paper? Come one! Either we raise taxes to meet the budget needs or we reduce services. Its just that simple.
T P | Nov 20, 2009 9:04 am | 2 replies | Request removal
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Are you suprised? Well, I'm not.. of course they turn to taxes when thing 'fall short of projections'.. or, as they currently say: "the spendingless recovery", like no DUH! No recovery, in American history had had increased spending, by the income earners, as the way out of the 'retraction/recession/depression'.. do you think the govenor really thought she could avoid increasing the government's take of people's wages? If she really did, to me that calls into question her ability to be any sort of leader, because it shows her inability to grasp the problem needing to be solved, and if she didn't, why has she put out these platitudes, and basically lied to us, in a sweet coasting? That also shows she shouldn't be a leader: who can (or would) trust a liar?
You voted for this, Washington State (and soon to come: Washington DC), now you (and those of us who did NOT vote for this too) get to lay in what you asked for. Please don't whine to me about it!!
Paul P | Nov 20, 2009 9:56 am | 0 replies | Request removal
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That is the problem. We do not get what we pay for. The services we need are: Roads, protection, schools and utilities. All the rest is waste and way beyond what the people mandate of their local and state government. I do not care about christmas lights, art work in the park, hanging baskets on lamp poles, etc. etc. I can not understand why these people do not have 'cutback' in their vocabulary. Start by Firing 10 administrators and save 2 million! They were probably part of the problem anyway.
I for one have had enough!
Grumpa | Nov 20, 2009 9:32 am | 0 replies | Request removal
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New sin taxes, what r they smoking? The seperation of church and state, who`s sin, sodomy, no, the state would have 2 tax its self, pun intended. Lie's once again political scientist could argue the right 2 free speach. The growing trend and discussion on marijuana decriminaliztion makes me think, they r slowly working on introducing this new revenue stream, hey if they deny it, well were working with political scientist! Smoke 1 while it's duty free, afterwards we can smoke 1 and it will be r duty, afterall pension benifits get cut for private sector working people, forget that one, proud looks, they know thats untouchable, hey isn't that a sin...oh! yeah seperation of church and state, you can pack fudge until the cows come home, but roll one and spark it up, criminal, but it probably a behavior they can get behind taxing, pun intended once again.
Paul Abbitt | Nov 20, 2009 9:25 am | 0 replies | Request removal
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What is Olympia thinking? Raising taxes in the midst of a major recession? That will only discourage consumer spending, further stagnate the economy and prolong the recession. Look, the recession has forced people to do with less. Our lawmakers need to do the same.
Tom C | Nov 20, 2009 8:25 am | 0 replies | Request removal
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Can anyone say, "Fire the politician that raises taxes in a recession"?
Why are revenues down? Recession? Could it be? If people aren't spending, how are new and raised taxes going to stimulate the economy. I always go on big shopping extravaganzas after taxes are raised...don't you?
I know that the majority in this state hate conservative ways of thinking. But history proves that reductions in taxation are directly related to revenue increases. It really is that simple.
william monger | Nov 20, 2009 8:11 am | 0 replies | Request removal
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