Advice from Eyman on raising taxes?

By Tim Eyman

Here’s some free advice for Gov. Gary Locke and the Legislature as they put together a transportation tax package. These suggestions will not only help legislators get their proposals passed but will also increase the likelihood that future initiatives by us won’t simply overturn all or part of their tax package a year or two from now.

  • Taxpayers will not give you more money unless they’re convinced you’re spending their existing dollars as cost-effectively as possible. Fundamental reforms must first be implemented (performance audits by the state auditor, opening carpool lanes to all vehicles during off-peak hours, contracting out state services, prevailing wage reform). If you truly believe transportation is in a crisis, then implement these reforms immediately.

    Sacred cow policies must be thrown overboard. Some politicians will of course whine "but I don’t want to vote for that reform" or "only if it’s watered down." Until you abandon Olympia-as-usual policies, don’t expect voters to give you any more tax dollars.

  • Ask the voters permission for the proposed tax increase in the spring. For years, Gary Locke and the Legislature promised that any major tax increase passed by the Legislature would be put to a public vote. They should keep that promise. Why? Because our organization has promised a referendum if the Legislature passes an increase without voter approval. Such a referendum would delay the vote until November and would torpedo the package ("this is the tax increase politicians didn’t want you to see" — the package would be doomed). Putting it on the spring ballot, as state senator Jim West suggests, dramatically speeds up the decision-making, avoids the delays of a referendum, and increases the likelihood of passage. By overwhelmingly supporting our initiatives three years in a row, voters have sent politicians a clear message: the only way you’re getting more money from us is by asking our permission. Accept this unambiguous mandate and you’ll begin earning back the voters’ trust.

  • Split the tax package in two: one for roads and one for alternatives (i.e. transit, rail). If it’s "all or nothing", voters may just give you nothing. Many pro-roads people will vote no on a big package because a bunch of the money will go toward transit, many pro-transit people will vote no because a bunch of the money will go toward roads. Remove that excuse to vote no by giving voters the choice. Besides, complex proposals tend to lose at the ballot box. Simplify the package by splitting it up so that it’s easier for voters to understand. Remember, all or nothing may get you nothing.

  • When Gary Locke signed $30 tabs into law in March, 2000, he said, "Despite the court’s ruling today, we have no intention of returning to the old system of high license tab fees. $30 license tabs are here to stay." However, his transportation tax proposal includes a new 1.5 percent sales tax surcharge imposed when you purchase a vehicle and a 20 percent increase in trucking fees. His argument is, hey, it’s not a motor vehicle excise tax, it’s a sales tax surcharge, it’s increased trucking fees. Call ‘em whatever you want, but these increases are clearly intended to get around the promised $30 tabs.

    The Legislature should scrap the sales tax surcharge and trucking fee increase, and instead put forward a small general sales tax increase, which would bring in the same amount of tax revenue. Again, we’d have to do another initiative if their transportation tax package included increases in trucking fees and new sales tax surcharges on vehicle purchases. The Legislature can avoid a future initiative by us by simply scrapping these proposed tax increases.

  • Our new initiative, I-776, takes care of one last critical issue: giving voters another vote on that multi-billion-dollar black hole light rail. Without a revote on Sound Transit, a rogue agency in desperate need of accountability, voters will be extremely hesitant about approving any tax increase. Initiative 776 allows politicians to make the case for their tax increase without having the stench of Sound Transit holding up progress.

    We have spent the past few weeks discussing these ideas with the Legislature and the governor’s office. If their goal is to convince taxpayers to vote for tax increases to fund transportation improvements, the first thing they should do is start listening. And the reality is that our organization has consistently shown that we have our finger on the pulse of the taxpayers. If politicians truly listen to what we’re saying, they’d realize that our suggestions will help them do their jobs better and will avoid some future initiatives by us.

    Tim Eyman is the co-sponsor of Initiative 776, The Right to Vote on Higher Vehicle Taxes and heads up Permanent Offense, a grassroots taxpayer organization. He lives in Mukilteo.

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