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March 2, 2010 at 1:38 PM

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House Democrats gripe about tax plan as they vote for it

Posted by Jim Brunner

OLYMPIA -- The House Finance Committee moved a $758 million tax package to the full House Tuesday afternoon, but not before just about everyone on the committee griped about some part of it.

It was no surprise that Republicans opposed the tax plan. But Democrats aggressively sniped at it too.

Rep. Bob Hasegawa, D-Seattle, argued the main problem with the bill was that it didn't go far enough to raise revenue.

"It's not strategic. I see it as hunting and pecking," he said.

And there have been plenty of complaints from those businesses being pecked at in the bill.

The proposal, House Bill 3191, contains no general sales-tax increase, but would raise sales or business taxes on an array of specific products and services: candy, cigarettes, lawyers, janitorial services, out-of-state banks, private airplanes and elective cosmetic surgery.

It seemed like every Finance Committee member had a grievance about one or the other of those -- an illustration of the larger political problem facing the Legislature as majority Democrats push for the biggest (general fund) tax increase in more than a decade.

Rep. Steve Conway, D-Tacoma, said the candy tax would harm local candy makers, further eroding the state's manufacturing base. (The owners of the Tacoma company that makes Almond Roca testified earlier in the day against the tax.)

Rep. Sharon Tomiko Santos, D-Seattle, complained the bill had been written without enough input from legislators on the panel.

She also ripped a part of the bill that seeks to crack down on tax-avoidance schemes used by some businesses, arguing it gave too much power to the Department of Revenue.

"This country was built on the notion of separation of powers," she said. "As I read the bill before us, we delegate all three functions (branches) of government to a single state agency."

Nevertheless, Democrats said they felt compelled to pass the bill on to the House floor, where it can be tweaked as it moves forward. The committee vote fell along party lines, with all six Democrats voting for the plan, and the three Republicans voting no.

The move puts the House tax plan procedurally ahead of the Senate's tax package -- which includes a sales tax.

The Senate's plan hasn't budged since it was announced last week.

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Jim Brunner
Covers politics.

Keith Ervin
Covers the Eastside.

Andrew Garber
Covers politics and state government from Olympia.

Emily Heffter
Covers local government.

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Covers transportation.

Kyung Song
Covers politics and regional issues from Washington, D.C.

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Bob Young
Covers King County and urban affairs.