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Wednesday, December 8, 2010

Olympia and the Giant Sucking Tax Increase

Taxes are going up lots. The tax hikes were much bigger than anyone knew. There is no deficit in Olympia, and we are screwed.

“Democrats” and their special-interest-group-backers are whining about getting "no new revenue" because the voters reinstated I-1053's two-thirds vote requirement. But the truth is there's a lot of "new revenue" coming in to government coffers. The Office of Financial Management (OFM), the state budget office, confirms these numbers:

After suspending I-960, Gregoire and the "Democrats" imposed $774 million in "revenue enhancements," i.e. taxes. The voter-approved I-1107 repealed only 7% of it, meaning we're still paying $719 million in higher taxes. In other words, 93% of the “Democrats” original tax package remains in effect.

In the next budget (2009-2011), the “Democrats” revenue package from this year was expected to bring in $1.69 billion. Even with I-1107's repeal of food & beverage taxes, Olympia will still receive $1.473 billion in "new revenues."

The OFM said the 10 year cost of this session's revenue package totaled $7.1 billion. I-1107 repealed just 5% of that, meaning their "temporary" suspension of I-960 still resulted in a $6.748 billion hit on Washington's families and businesses.

The most up-to-date revenue projection for the 2009-2011 budget is $28.127 billion (Economic & Revenue Forecast Council). And for the 2011-2013 budget, it's $32.605 billion. That's a $4.48 billion increase (and $1.473 billion of that -- see #2 above -- came from this year's tax hikes).

It is totally untrue that state government is getting "no new revenue" even with the passage of I-1053 and I-1107. Both in the short term and long term, the taxpayers of Washington will continue to pay heavily for the Legislature's "temporary" suspension of I-960's fiscal restraint.

We must never let this happen again. Even a single day without the 2/3's super-majority requirement will result in Billions Of Dollars In Higher Taxes Forever.


Part of I-960 (and revived with the passage I-1053) was the transparency requirement regarding new taxes or fees. When the Legislature increased taxes or fees, they had to reveal the increase, and who voted for it, immediately.

When the “Democratic” Party controlled Legislature “suspended” I-960, they made sure to suspend the transparency requirement. We are only now finding out how much the “Democrats” despise the People. The “Democrats” massively increased taxes when they gave themselves a little dark corner to plot and scheme against the People of Washington State.

The election makes it clear the Legislature increased taxes against the will of the People. Its also clear the Legislature maliciously knew their tax increases had to be made in secret so they could be re-elected. This Legislature has lost its moral authority to govern our State democracy.


The OFM website makes repeated reference to reduced revenue. The state is taking far more than they should, but because they are getting less than they want, they feel deprived. We have a perfect example of spoiled brat government in Olympia.

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