Peninsula Daily News news sources
OLYMPIA — The idea of creating a state income tax was raised again Thursday, but a key legislative Democrat — who is a representative of the North Olympic Peninsula — says it’s unlikely to happen this session.
In an Internet web-log posting Thursday, Senate Majority Leader Lisa Brown of Spokane said she wants voters to weigh in on the idea of an income tax on the state’s wealthiest in place of the sales tax increase bandied about Olympia right now.
It would take legislation hurried through the final weeks of the 2010 legislative session, which has been vexed with patching a $2.8 billion budget deficit.
“It seems fairly unlikely,” said House Majority Leader Lynn Kessler, D-Hoquiam, whose 24th District includes the North Olympic Peninsula, of a bill ordering the income tax referendum.
“But, you know, everybody’s out there trying to figure out a way that will work.”
In her blog posting Thursday, Brown suggested that the Legislature pass the Senate Democrats’ temporary 0.3-cent sales tax increase proposal and that it take effect immediately.
But Brown also suggested that the Senate should pass a bill sponsored by Sen. Rosa Franklin, a referendum that would ask voters whether they want to lower the sales tax to 6 cents per $1 of retail sales and in its place approve a “high earners” income tax.
$200,000-plus income
The tax would be on 4.5 percent on all income over $200,000 for individuals, $300,000 for heads of households and $400,000 for married couples.
“It’s a question to voters if that’s the direction they would want to go,” Brown later told The Associated Press.
The Senate was still working on language of Franklin’s bill, and it was to be posted before the start of a hearing on it later Thursday.
The likelihood of such a measure getting enough votes, even among Senate Democrats, is uncertain, and even Brown acknowledged she hadn’t yet counted votes.
“Just because we’re holding a hearing doesn’t mean that this is a direction for the caucus,” said Senate Ways and Means Vice Chairman Rodney Tom, D-Medina, who is opposed to the measure.
“We have a lot of serious issues we need to address now, as far as how we’re going to get our fiscal house in order and get a balance between our revenues and our expenses.”
The legislative session ends next Thursday.
Mix of cuts, taxes
House and Senate Democrats have both unveiled proposals that have a mix of cuts and tax increases.
The Senate is pushing for the temporary sales tax increase, an additional $1-per-pack tax on cigarettes, and closing numerous tax exemptions.
Kessler and other House Democrats are looking to shrink a long list of tax exemptions and collecting more money from smokers, lawyers, accountants and out-of-state businesses.
Republicans questioned whether an income tax referendum could be passed on a simple majority vote.
Sen. Joe Zarelli, R-Ridgefield, said that he thinks any change to the tax code would require a constitutional amendment, meaning that two-thirds of the Legislature would have to approve it.
“They’re trying to do the class-warfare thing in their tax debate,” he said, “but constitutionally, it’s not going to work.
Brown has long supported the idea of an income tax on the state’s highest earners, but the idea has not been able to gain traction in past years.
Brown said that under the referendum, the state’s middle class voters could “not only have a the opportunity to protect essential services while asking wealthier citizens to pay their fair share, but the middle class would also have the opportunity to lessen the amount they currently pay.”
Gov. Chris Gregoire is “not closed off to the idea, but knows there’s difficulties,” said spokeswoman Karina Shagren.
“Given the timing of the legislative session, it makes it even more difficult,” she said.
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Associated Press staff writers Rachel La Corte and Curt Woodward contributed to this report.
Sen. Lisa Brown’s blog post: http://bit.ly/aLrCo7 .
