Gregoire poses new taxes to close state budget gap

OLYMPIA – Gov. Chris Gregoire called today for taxing candy, bottled water and soda pop to help pay down the state’s budget deficit.

She also wants to hike the existing taxes on cigarettes and hazardous substances as part of a more than $750 million tax package detailed in a letter sent to Democratic and Republican leaders of the Legislature.

That is the total amount of cuts Gregoire has proposed in public education, health care and human service programs that she has said she does wants to buy back.

Under her proposal, sales tax would be levied on candy and gum purchases, a 1-cent per ounce fee would be imposed on bottled water and a nickel would be tacked onto every 12-ounce can of carbonated beverages.

The latter two fees would be paid by wholesalers though it is expected they would pass the charge onto customers.

Gregoire and lawmakers are grappling with a $2.8 billion deficit in the budget that runs through June 30, 2011.

With today’s announcement, Gregoire’s plan for erasing that red ink relies on using existing reserves, fund transfers, new revenue and about $1 billion in cuts.