Originally published Monday, February 23, 2009 at 12:00 AM
Editorial
Washington taxpayers can't bail out state lawmakers
Any tax increase big enough to fill the state of Washington's projected deficit in 2009-2011 will be too big for the economy to bear. The solution is cuts in spending.
FOR the two years beginning July 1, state government forecasts an $8 billion deficit — a sum equal to one-quarter of the money spent in the past two years. The chasm is not a gap the people can be expected to fill.
If the state asks them — and by law, it would have to — they would say no. And why should they say otherwise? It is their government. They pay for it, most directly in sales taxes. And they have been buying fewer things for themselves. Some have lost their incomes, or expect to. Others have seen their assets shrink. They feel poorer. They feel less secure. And they are.
They now hear pleas that certain state programs are needed more than ever. Some are. But there is that $8 billion hole. Even when reduced to roughly $5 billion with the timely arrival of federal fill dirt, the gap is still too wide to reasonably be filled with new and higher taxes.
Consider some of the tax proposals introduced in Olympia. Sen. Jim Hargrove, D-Hoquiam, proposes a 0.215-percent tax on primary plastic and plastic containers. Rep. Deb Eddy, D-Kirkland, would extend the sales tax to hair transplants and cosmetic dentistry for people who already had a "normal appearance." Rep. Ross Hunter, D-Medina, would impose a gross-receipts tax on services delivered over the Internet. Sen. Rodney Tom, D-Medina, would add another dollar a pack to cigarettes. Rep. Maralyn Chase, D-Edmonds, would impose a 6-percent tax on small gasoline-powered equipment such as lawn mowers and leaf blowers.
All these taxes together would fill about 7 percent of a $5 billion gap.
One bill would fill all of it: Senate Bill 5104 by Sen. Rosa Franklin, D-Tacoma. It is a personal-income tax with brackets of 2.2 percent, 3.5 percent and 6 percent, with the break points for a married couple at $50,000 and $120,000. This raises more than enough for the state — and takes it directly from private spending, private saving and private investment, all of which are necessary for economic recovery.
There is the problem for Democrats who would send a tax package to voters. If their tax does the job, it will be an economy-killer. If it is a bearable tax, it won't do the job.
The remaining option is cuts. They are painful, but they will have to fill most of that $5 billion gap.
The state must cut, cut, cut.
Copyright © 2009 The Seattle Times Company
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