APNewsBreak: Coalition abandons referendum effort

Two high-profile proposals to raise taxes sputtered Thursday, with top state lawmakers saying an increased sales tax and an earnings tax on larger incomes appeared dead.

The announcements came with just three full days before the Legislature's scheduled adjournment, as the Democratic majority worked out the final details of a plan to solve the state's estimated $9 billion budget deficit.

Health care interest groups wanted to ask voters to raise the state sales tax by three-tenths of a penny, with the money dedicated to various state-supported health care programs.

But their political research showed voters were wary of a tax increase amid the lingering national recession, and House leaders said Thursday that they couldn't round up enough votes to pass the bill.

"There were just a variety of concerns that people had, and it just added up to not enough votes," said House Majority Leader Lynn Kessler, D-Hoquiam.

The apparent failure of the sales tax plan came after advocates mounted a last-minute push for support. Leaders of two Service Employees International Union locals pleaded with legislative leaders in a letter, and advocates of a program called Adult Day Health repeated warnings that the expected deep budget cuts to health care could push some sick people toward death.

Meanwhile, Senate Democrats officially announced they were giving up on a proposal that would have instituted a state income tax on people pulling in higher incomes.

Various versions of a "high earners" income tax were being discussed in the Senate, but Majority Leader Lisa Brown, D-Spokane, said they wouldn't become reality this year.

Washington does not have an income tax, and advocating one generally is considered politically risky because voters have rejected past proposals. But Brown said the deep recession was the time to bring up the issue in a serious way.

"Many members of the Senate Democratic caucus, but certainly not all, still believe that changing our tax system is the right thing to do," Brown said. "However, we concluded this is not the right time to do it."

The apparent death of the two major tax proposals doesn't mean cash-strapped Washingtonians will be completely off the hook once the Legislature adjourns. The majority Democrats' budget balancing plan is expected to count on higher college and university tuition, with other assorted fee increases.

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AP Writer Rachel La Corte contributed to this report.

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On the Net:

Legislature: http://www.leg.wa.gov