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 FRIDAY, MARCH 12, 2010 2:31 pm |
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Local News 
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Washington could see new taxes in a host of areas OLYMPIA — You could pay more for candy, soda pop or bottled water next year to help dig the state out of another gaping budget hole.Barbers, beauticians and lawyers may be told to start charging sales tax for their services as well. Some legislators want Oregon residents to pay sales tax when shopping Washington — they don't now — while others think legalizing and taxing the sale of marijuana could generate chunks of money to cover the projected $2.6 billion budget deficit. “There's no idea too harebrained for us to think about,” said state Sen. Margarita Prentice, D-Renton, chairwoman of the Senate Ways and Means Committee. While closing loopholes and ending exemptions are being scrutinized, it's taxes, new ones and higher ones, which will stir up the most heated debate when the Legislature convenes its 2010 session in January. Gov. Chris Gregoire and fellow Democrats in the state Legislature are looking for enough new money to preserve an array of social programs now on the chopping block. Republicans, who are the minority in the Legislature, oppose new taxes and think the state can no longer afford some of the programs targeted for saving. At this point, there are numerous tax ideas on the table. Each will produce a different amount of cash. There are some politically improbable ones such as an income tax or four-hour Keno, both of which have been summarily rejected by legislative leaders for 2010. There are the politically volatile options like hiking the state's sales, property or business and occupation taxes. There are politically difficult choices such as adding a sales tax on services of lawyers, accountants, dentists and other business and financial professionals. It's been tried before without success. And finally there are the politically possible items, or, as some would say, the low-hanging fruit. These include ratcheting up the cigarette tax, imposing a fee on soda pop and bottled water and charging sales tax on candy, gum, muffins and other food products. Not all of these taxes pay the same dividends, according to estimates prepared in November by the state Department of Revenue. Increasing the sales tax is a big money-maker, for example. If it went up a penny from its current 6.5 cents, it would bring in roughly $1 billion to the state treasury between July 1, 2010, and June 30, 2011. Make it half a cent and half as much is raised, according to the department calculations. Tacking a 10 percent surtax onto the business and occupation tax would net about $267 million, while a quarter point-boost in the real estate excise tax could produce nearly $125 million. Those steps are unlikely to be taken by lawmakers fearful of harming the economy and their political careers. If they put a sales tax on candy and gum — as has already been proposed in legislation — it could bring in $28 million. By comparison, adding it to cosmetic surgery will gross about a quarter of that. If lawmakers decided to charge wholesalers of soda pop a nickel per 12-ounce can of soda pop, they'd raise about $94 million. With making wholesalers of bottled water pay a penny per ounce, an estimated $135 million in new money could be generated. While sin taxes often get mentioned first, they don't do much for the bottom line Adding another quarter to the cigarette tax — which is now hovering at about $2 a pack — might bring in $25 million. State revenue officials point out these numbers are guideposts provided lawmakers. Detailed fiscal notes would be prepared for taxes given serious consideration in the session. That may not occur until the final days of the session. “Taxes really are meant to benefit the people,” Prentice said. “If we made an all-cuts budget and no taxes, it would be so nightmarish as just about everything we're trying to do to help people would be gone. We will have great difficulty agreeing to which taxes.” Jerry Cornfield: 360-352-8623, jcornfield@heraldnet.com. |
- Woman still in critical condition after Monday crash on Highway 9
- Cut through solid-white lines and it could cost you $411
- Study: Boeing tanker seen as big job producer
- County to pay builders $1.7 million to settle suits
- Marysville girl on bike in critical condition after struck by car
- Lawmakers act to roll back state ferry workers' travel perk
- Fugitive charged in toddler's slaying accused of robbery
- Mariner notes
- Special session likely to finish budget, tax increase
- Everett man pleads guilty to murder on Tulalip reservation
- Bill passes making cell phones, texting while driving primary offense
(33) - Cut through solid-white lines and it could cost you $411 (24)
- Alcohol, marijuana cited in fatal wrong-way crash (21)
- Everett courts water-bottling company (21)
- Tulalip man accused in a toddler's death is a no-show (19)
- Special session likely to finish budget, tax increase (12)
- County to pay builders $1.7 million to settle suits (11)
- Woman still in critical condition after Monday crash on Highway 9 (11)
- Wanted: Downtown Everett renters (11)
- Fugitive charged in toddler's slaying accused of robbery (11)
- Yelm ousts Lynnwood girls, 54-51
- Meadowdale boys take aim at fifth place
- Archbishop Murphy girls keep vow to win
- Meadowdale boys refuse to fold, but rally falls short in 3A state opener
- Prairie’s zone defense stymies Lynnwood at Class 3A state girls basketball tournament
- Ellensburg takes it to Archbishop Murphy girls at 2A tourney
- Beyond the ‘Woodstock Generation'
- Magical run for Jackson
- Boeing to Offer NewGen Tanker to US Air Force
- New CEO at Valley General Hospital
- Dan Koffman's ‘TopSpin' marketing astounds, inspires, motivates, produces — just for starters
- Economic forecasts for Snohomish County, Everett, Marysville offer some bright moments
- Government officials influencing home prices
- Massive EPA energy regulations meet challenge
- Washington state healthcare reforms also needed
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COMMENTS
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I think it is very interesting that as soon as Olympia votes in a new tax that they give thereselves a raise.
Vance Allred | Dec 14, 2009 7:01 pm | 0 replies | Request removal
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Rosemary Crawford | Dec 13, 2009 8:06 am | 3 replies | Request removal
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Yeah, because we see how well this country prospered under eight years of a Republican president.
R N | Dec 13, 2009 9:41 am | Request removal
As the kids would say "Oh no he/she didnt just go there, OH SNAP!"
Mike Flavin | Dec 13, 2009 6:00 pm | Request removal
But they don't have sales tax.
Here they talk about adding an income tax...on top of the sales tax!!
I'm a swing voter....I can tell you which way I will be swinging next vote...
shy | Dec 13, 2009 6:09 pm | Request removal
http://www.census.gov/govs/statetax/05staxrank.html
With businesses either fleeing or going out of business, that raising business taxes is a wonderfully brilliant idea.
You've got to be kidding me.
I know it sucks to cut back on "basic" services, but we lived without this amount of "basic" services 30 years ago and we can again.
shy | Dec 13, 2009 2:19 pm | 0 replies | Request removal
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So Jim say's we should keep giving the alcoholic outside the liquor store money so he can keep drinking. That is the way I equate politicians with their hands out for more money. We all know there is waste, lots of waste. If we do anything it is to hire an efficiency expert and have them go through all of the government programs and start lopping off the excess with a meat cleaver! And hopefully they do not become jaded by the job at hand. This is a fantasy of course because it will never happen and government will just keep getting bigger and bigger totally unchecked.
Grumpa | Dec 13, 2009 1:01 pm | 1 replies | Request removal
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The state does hire efficiency experts - the state auditor does performance audits of state agencies and makes cost saving recommendations all the time.
I didn't realize schools are a disease like alcoholism. I always thought they were a way to achieve economic prosperity and prevent crime.
And yes, government will always grow. Our state population increases every year and more kids require more schools. More population=more need for public health services=more government. Should government become more efficient over time? Yes, but putting more kids in a classroom lowers their ability to learn. Efficiency isn't everything.
Anthony - if you think local governments are going about their job improperly, let them know. We have different levels of government in this country to increase accountability and improve the services that government delivers. That's why we have sewer districts, transportation districts, cities, counties, states, hospital districts.... If you'd rather we have one central government controlling and taxing you for everything, I know where you can move. I'd rather have local control and local taxation, but that's just me.
Jim Freeburg | Dec 13, 2009 1:51 pm | Request removal
Why not nock off some of the rediculous projects municipalities have going on. I live near Martha Lake, the county is going to start building a park where the old airfield was. 3.5 million dollars and WHY? At a time when we need the money for basics, they are spending money on parks for apartment dwellers. The State and local municipalities have money in the coffers, it's mismanaged to say the least. They now want to add more taxes because of the mismanagement and high saleries. You don't see anyone working for the state taking a cut in pay just us tax payers.
Anthony Ramirez | Dec 13, 2009 1:31 pm | 0 replies | Request removal
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Here we go again, how about taxing things that are bad for you? Churches that put forth unproven b.s. and fantasys should be subject to entertainment taxes.
Jon Cannelo | Dec 13, 2009 11:03 am | 1 replies | Request removal
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I very much agree with you.
Heather LaMarr | Dec 13, 2009 12:44 pm | Request removal
Washington is not overtaxed compared to other states. If you look at a per capita basis, Washington has lower state and local taxes than the national average: http://www.leg.wa.gov/Senate/Committees/WM/Documents/Publications/BudgetGuides/2009/CGTB09.pdf (page 19).
Still, taxes are difficult to compare from state to state because not every state has the same taxes - Washington's B&O tax on gross income for instance doesn't compare to other business taxes. And we have a high sales tax because we don't have an income tax. But anyway you slice the pie, most comparisons of state taxes put Washington in the middle of the pack.
As for what state taxes cover - look at page 12 of the guide above. Schools (K-12) take 41% of state revenues. Human services (think jails, foster care, public health) take another 37%. State colleges (11%), state parks/natural resources (1.5% of the budget). If you want to make cuts, they have to come from education and human services. The deficit is too big to overcome with cuts to anything but the big cost drivers. So if you want to lay off teachers, close prisons, and forgo swine flu planning, go right ahead. Just tell everyone what you don't want to have funded.
Jim Freeburg | Dec 13, 2009 11:10 am | 0 replies | Request removal
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Stop caving into special interest groups and their unreasonable demands! This ain't the same economy Gregoire had back in 2005 and the well has run dry. With voter discontent brewing, this is probably Gregoire's last term as Washington governor. She has nothing to lose. She needs to stand up to special interest pressure and do the right thing for the taxpayers for a change. Or Gregoire will go down in history as the least effective/popular Washington State governor.
Tom C | Dec 13, 2009 10:03 am | 0 replies | Request removal
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I have my own business and the taxes are almost suffocating. On top of that as everyday citizens we already pay almost 10% sales tax, plus property tax, alcohol tax, gas tax, cigarette tax, income tax, medicare tax, social security tax, vehicle licensing tax, tolls, fees, late fees, luxury fees, airport fees, school taxes, library taxes, park taxes, taxes on utilities, tax on phone bills, tax on cell phone bills, etc, etc,
We are paying almost 65% in taxes when you add it up. When is this going to stop? When you have nothing! Tell these stupid POS to stop!
Grumpa | Dec 13, 2009 12:20 am | 3 replies | Request removal
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It will stop when the liberals stop running the show.
Jack E | Dec 13, 2009 12:30 am | Request removal
In 1995 the State GF Budget was approved at 17.6 Billion. In 2009, only 14 years later, it was approved at slightly over 31 billion...just shy of 14 billion of increased spending in 14 years! Government has a spending problem..not a revenue problem.
john koster | Dec 13, 2009 5:19 am | Request removal
Tax tax tax
Well some one voted in the queen bee as gorvernor not me. I could see it comeing. One maybe we will get some one in there that will stop taxing us to death.
Its a funny place isnt it?? She has no problem taxing us on every thing but air!! thats next.
I have said it before how on earth can she and her partners in crime can feel good about takeing a 15% raise and putting a wage freeze on sate and local employees.
just her small part was 35,000 dollars but she has to tax us before and after death.
I still dont see why the state taxes the dead.
But you know they dont really care how high the tax gets because they dont have to pay tax on thier wages or social security. Plus every thing else is handed to them on a silver paltter.
Like thier s/s even though they dont pay in to it
and thier goverment retirement what joke. The joke is on us and we continue to let it happen as if there is anything we could do to stop it.
Just like our new president said he would end the war when he took office and bring our troops home.
what a joke he turned out to be. I remmber his His words were I will bring them home when i am president and you can take that to the bank. Yeah right!!
Just another lie. like all the other ones he told to get the big white office Chair.
Rich Wynn | Dec 13, 2009 6:25 am | Request removal
We are already number eight on the list of States with the highest taxes. Chris and her cronies won't stop until we are Number 1! Chris, this is NOT the list that we want to be Number 1 on!
Ultimately, we have nobody to blame but ourselves. We keep electing all these career politicians, and once in office instead of doing what the people want, they push their own agendas.
I love this State, and Snohomish County in particular, having been a lifelong resident. But, with the way things are going, 20 years from now when Boeing is gone and all the tax increases are in place, am I going to be able to still afford to live here?
Jimmy Jeeper | Dec 13, 2009 8:58 am | 0 replies | Request removal
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One has to remember the taxes you pay are for the services YOU want/demand/require. Police, fire, medical, roads, education, medical, senior services, street lighting, safety, yada, yada, yada. True, waste could be curtailed and things could be run more efficiently but the basic taxes pay for the things YOU want.
I could see a rise in taxes IF it was just for a period of time to get us through this mess then is dropped. The trouble is once the Politicians get their hands on more money they don’t want to let go.
Keep in mind when you go on strike, or ask for a raise in pay, that’s what the Government is doing. Let them raise the taxes FOR A LIMITED TIME to get out of this mess then return to the base tax… Just my opinion
walter Lasher | Dec 13, 2009 7:12 am | 1 replies | Request removal
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The problem with your way of thinking is that WA State Gov't NEVER does a "temporary tax". The Democrats are addicted to income, and all of Gov't to irresponsible spending. No castles/mansions for the Gov and Univ. Presidents first and fastest, and then other rediculous expenditures chopped before any new taxes!! And for the record, I think the police and fire services are WAY over blown too. School spending is out of control, EVERYTHING should be on the block for much better management, or elimination these days. Any new taxes will just drive away more businesses and smart people. You will be left with a deteriorating State of affairs. If this is what you want, why not just move to CA and live in a more socialist state, as you seem to desire?
Ken Cox | Dec 13, 2009 8:07 am | Request removal
Politicians have survived to this point because they purchase votes by promising services and care to various segments of the population. Too many people want the government to be mommy and daddy and just take care of them. As the years roll on more gets promised and the ability to pay for it all becomes impossible to sustain. At some point we are either going to be taxed at 90%, as FDR once wanted to do to people making over a certain amount of money, or, they are going to have to cut back most of the social programs and get back to the basics of governing instead of parenting. But no one wants that to be their legacy. No one wants to cut their own political career short to do the right thing.
Sigh... Too bad there are no more "New Worlds" to sail to and start over.
But I think they would tax that too.
Mike Schmieder | Dec 13, 2009 6:08 am | 0 replies | Request removal
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