Thursday, February 16, 2012

State Revenue Forecast, 2012

The Washington State Revenue Forecast Council met this morning, Thursday, February 16 at 10:00 a.m. and shows the projected General Fund revenue for the 2011–13 biennium up by $96 million, compared to the previous quarterly forecast in November. This is a revenue increase of .3 percent in the current biennium and the first increase since June 2010. The new forecast increases total projected General Fund revenue for the biennium to about $30.3 billion.

A portion of the $1.4 billion dollar revenue shortfall was addressed in the December special session. With the $478 million in spending cuts, fund transfers and new revenue, from the special session, and the current forecast, the state currently has a projected budget shortfall of $855 million.

Many lawmakers on both sides of the aisle agree that there are some “tax incentives” that need to be eliminated; for example, big banks do not pay a B&O tax on income from first mortgages. Other tax breaks to be considered include those for wind turbines and other alternative energy sources – but that is not the comprehensive list. I think it’s fair to say that at this point both parties are looking at all tax alternatives to ensure that those not needed/not working be phased out.

It’s anticipated that the House Republicans will announce their budget on Friday, House Democrats will announce their budget early next week and the Senate budget should be announce the week after.

Mark Gjurasic
Public Affairs of Washington

Wednesday, February 15, 2012

The Income Tax, Again....

Income Tax, Olympia Style

Although the People just turned down an income tax in Autumn of 2010, Olympia's greed knows no end.

SB 6548, titled An Act Relating to providing a stable source of revenue for education by imposing a tax on high income earners, has been introduced in the Senate.

If approved as written, the Office of Financial Management said the tax would take $1.5 billion in new taxes over the next nine years.

The voters will be asked to approve amending the state's constitution to allow income taxation. I think the people understand that a "tax on the rich" won't stay that way for long. It will become a tax on everybody.

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These are the sponsors of the bill.
  • Senator Jeanne Kohl-Welles, Prime Sponsor (D) Seattle, (360) 786-7670
  • Jeanne.Kohl-Welles@leg.wa.gov
  • Senator Sharon Nelson (D) Vashon (360) 786-7667
  • Sharon.Nelson@leg.wa.gov
  • Senator Karen Keiser (D) Des Moines (360) 786-7664
  • Karen.Keiser@leg.wa.gov
  • Senator Adam Kline, (D) Seattle (360) 786-7688
  • Adam.Kline@leg.wa.gov
  • Senator Debbie Regala (D) Tacoma (360) 786-7652
  • Debbie.Regala@leg.wa.gov
  • Senator Nick Harper (D) Everett (360) 786-7674
  • Nick.Harper@leg.wa.gov
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Updated March 2, 2012

Here we go:

SB 6548 imposes an income tax on "high earners" (later to be expanded to everyone). The stated purpose is to fund education.

HB 2766 imposes an excise tax on the receipt of adjusted gross
income above one million dollars. The concept of defining personal income as sales proceeds is identical to the initiative 1098, turned down by the voters in 2010.

HB 2486 is a monster tax package. It introduces something called the "Corporate Privilege Tax", combined with a personal income tax. The stated purpose is provide for education.
Backers claim sales tax and property tax would be reduced -- thus reducing overall revenues to the state $7,487,420,000 over an 8 year period.

SB 6550 is the Senate version of HB 2486, and is nearly identical.

HB 2744 would replace the business and occupation tax with a flat rate tax on corporate net income. The present business and occupation tax is based on gross business income.

SB 6495 would be a massive personal income tax of $71,666,712,000 over 8 years (the projection runs out that far, but the tax would go on until modified). Backers claim sales tax and property tax would be reduced, reducing the overall tax increase.

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Olympia is searching for new cash sources to fuel their spending habits. The politicians claim every one of the proposed taxes is "fair" or "more fair." More fair than letting us keep the money we've earned, I suppose.

The sales tax and other so called "regressive" taxes in Washington State probably helped moderate some of the impact of the current depression. Sales taxes are applied to consumption, which inhibits waste.

Income tax and other so-called "progressive" taxes tax production. A depression like the current one is a drop in production, which had the nasty side effect of making workers unusable. If the state was taxing income from the remaining productive companies, those companies (and their workers) would have faced a dangerous and unfair burden to their future employment.

The best solution to Olympia's current funding problems is to make the tough choices and reduce state spending.

Thursday, February 2, 2012

Homosexual "Marriage"

The legislature has mumbled -- Homosexual Marriage may become law in Washington State. Everett attorney Stephen Pidgeon has already filed to require referendum of the bill. If he can collect enough signatures, the people will be heard.

Complicating this is the law in Washington does not recognize same sex marriage. The Washington State Defense of Marriage Act was passed in 1998.

The state already recognizes homosexual couples with domestic partnerships. In 2009 law was enacted to give homosexuals in civil union all the protections of marriage.

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Perhaps the legislature and the governor reckon this divisive law will distract voters from the fact that we still have a $1.5 billion shortfall in the state budget.

I told you the work of slashing our budget by another $2 billion would be dreadful, and that's what it is. The result is Washingtonians will get a lot less of what they truly need from state government,Governor Christine Gregoire

We'll see.

Tuesday, January 24, 2012

Politicians Hate the Initiative Process

It challenges their elitist policy-making "monopoly." It lets the people decide.

The trouble we have is that the government in Olympia has become inbred. They are determined to care for government officials first to, the exclusion of the People. The People must awaken to the fact that when the politicians stop serving the People and start serving only special interests, the whole society is in deep trouble.

For 15 years, Tim Eyman and Voters Want More Choices work to let the people decide important issues; for example, lower car tab taxes, limits on property tax increases, performance audits of government, the 2/3 legislative majority vote requirements for tax increases. They've also made it top priorities to defend the initiative process from “liberal” political attack.

The People had a huge victory last Friday.

Background: Last year, in response to Eyman‘s initiative in Monroe on red-light cameras, the Monroe City Mayor and City Council refused to allow the people to vote Then they sued Eyman for sponsoring the initiative. The people’s own elected representative sued to keep the people out of the political process. Despicable.

The City officials asked the court to impose a $10,000 fine on Eyman and tried to force Eyman to pay the City attorney’s fees. Under the threat of escalating legal costs against an the government with taxpayer-funded resources to pay their lawyers, lots of folks would've folded their tent and gone home. Eyman didn't -- he fought back.

After months of personal anguish and stress, Eyman prevailed against the Monroe politicians’ anti-initiative effort, as on Friday, Snohomish County Superior Court Judge George Bowden found that the City's action was a Strategic Lawsuit Against Public Participation (SLAPP lawsuit) and imposed a $10,000 fine on the city! The red-light camera initiative is green lighted for a public vote.

Judge Bowden wrote: "Having secured enough valid signatures to place (the initiative) on the ballot, the City's lawsuit burdens the initiative sponsors with having to defend the right of the voters to express their opinions and weigh in on a matter that will directly affect them."

This court decision sends a clear message to other arrogant politicians that such obstructionist tactics will not only fail, but result in substantial financial penalties. It is a huge, huge victory for initiative rights in Washington.

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But what does it matter to the authoritarian “liberals?” The People get to pay for everything arrogant mistake the politicians make.

Yesterday, Eyman again drove down to Olympia to testify against another one of the pageant of anti-initiative bills that have become annual tradition in our state's Capitol.

Much of this information is supplied by Tim Eyman.

Sunday, January 15, 2012

Homosexual marriage?

There are many different sorts of domestic partnerships. Some arrangements are not intimate -- they are an arrangement to split the rent or just have someone else in the house. Some arrangements are more intimate, but the partners do not want their status clarified. And in some cases people want to celebrate a different sort of cohabiting arrangement, such as non-traditional sexual orientation.

Enter the State -- The "liberals" are telling us homosexual pairings deserve to be described as a marriage. "Senator" Potty Murray explained words are always changing in their meaning. She gave the example of "mouse" which no longer means mouse. Likewise, Murray explained, "marriage" has changed to include homosexual pairings. She missed the fact that some people want to be different and she is forcing them to be labeled the same.

Anyway, "Governor" Christine Gregoire galloped to Murray's aid to forced the changed use of the term on the legislature attention. Both women claim to be very proud of the gobbledegook they are creating. Don't they have a massive budget shortfall to deal with?

Murray & Gregoire are intellectual lightweights, trying to pick a fight with half the people in the state. No word's meaning has been more honored and keenly defended than the word "marriage." It means the pairing between a man and a woman.

These state "liberals" are eager to create a debate with lack of clarity. They condescend to reckon the power of government can even be used to force people change the language they use to call marriage "marriage" -- a stupid government overreach.

The male-female paring deserves special naming -- It preserves wealth for the offspring of the union, and it produces offspring by combination of the genetic material of the two people involved in the marriage. (There are historical exceptions, cuckoldry and similar). In the main, the marriage relationship is unique and unblurable. It takes a monumental act of stupidity to miss this point.

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News source

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A public hearing is scheduled on HB 2516, 01/23/2012 1:30PM in the John L. O'Brien Building, House Hearing Rm A, Olympia, WA. The hearing for the associated Senate bill, SB 6239, is scheduled 01/23/2012 10:00AM in the J.A. Cherberg Building, Senate Hearing Rm 2, Olympia, WA

Update -- Because there is a tax or fee associated with homosexual domestic arrangements, the law required a public report, which is not ready yet (so they say).


Update on the update -- The cellar dwellers in Olympia who sort through the legislative output for taxes and fees have discovered they made an error. Here is the text of their notice: "An email notice was previously sent regarding SB 6239, AN ACT Relating to providing equal protection for all families in Washington by creating equality in civil marriage and changing the domestic partnership laws, while protecting religious freedom. Upon further analysis, this bill does not include a new or increased tax or fee." The same is true for HB 2516.

Friday, January 13, 2012

Banning Plastic Bags

An idea whose time is dumb.

Plastic bags are not a landfill problem the way the paper bags used to be. 98% of the people who have plastic bags re-use or re-cycle them. They are light, efficient and work very well. The legislature is intent on banning them.

Seattle City Council recently banned single use plastic bags. Apparently the Council is still miffed over the People's rejection of their 20 cent per bag tax, so they are beating on the people. By the way, Seattle City Council added a 5 cent fee on paper bags.

The rationale for the statewide bag ban is that it is too hard for businesses to conform to the patchwork of local regulations imposed on plastic bags. It figures Olympia would think the answer to stupid government is more stupid government.

HB 1877, was introduced by Rep. Joe Fitzgibbon & Rep. Marko Liias, both Democrats. Liias, you may recall, proposed increasing fees on the People's initiatives in order to silence the common rabble last year.

SB 5780 was introduced by Senator Maralyn Chase and Senator Adam Kline, both Democrats.

Thursday, January 12, 2012

State of the State

Governor Christine Gregoire in her State of the State message on Tuesday, January 10, included her visions for “New revenue options.”

Gregoire said, "In the next 60 days, I ask you to do four things:

1. Use the early start you got in December and quickly pass a budget;
2. Ask the voters this spring to approve a temporary, half-penny sales tax increase for students and their future;
3. Pass my school reforms; and,
4. Pass a major transportation and jobs package”

Gregoire also addressed her favorite topics – new taxes and fees, and closing tax “loopholes”. She said, “We must look for new revenue as well. Close tax loopholes to save vital services like the Basic Health Program for the working poor. It’s a matter of firmness.”

“Firmness” -- not a matter of wisdom, workability or fairness, but Who Is Governor.

Gregoire doesn’t support budget cuts.

Her favorite target is to increase the sales tax.

“Our businesses, our state, our children and our grandchildren can’t afford anymore “deep cuts” to education. About $411 million of the $494 [increased] million sales tax revenue would go to K-12 and higher education." The children need to be rescued from the uncaring state, again.

The House and Senate Democrats will likely both have their own budgets, as well as Senate & House Republicans.

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Gregoire's forth item, a transportation and jobs package, is an ongoing display piece, so everyone can see that She Is Getting Something Done. Politicians get fascinated with an idea and they relentlessly sell the idea to the People, who then clamor for construction. Whether or not a project will ever work out is ignored. Millions get spent.

The present tunnel-under-Seattle project will is one of these. The Alaskan Way Viaduct has been largely destroyed, to the delight of private landholders whose property has dramatically increased in value because of the Governor's action.

The whole project should have been shelved until the economy was stronger. But the "liberals" insisted there was no time to consider the options! The Governor must push forward! Billions have been committed.

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If you've lived in Seattle for a little while, you'll remember the downtown Seattle “Transit Tunnel Project” back in 1987, and the years of complications it produced. When the project was finished it traffic and bus riders snarls concerning transfers and safety problems. So Diesel buses were allowed to use the tunnel but other surface traffic was re-routed. Then things things became more tangled.

We never got the half-billion we spent back in benefits. We really should stop spending until we see where the money goes. We can spend tomorrow only what we still have.

Some material in this report comes from Mark Gjurasic

Rob McKenna's review of State of the State

Thursday, December 29, 2011

Washington State Redistricting Plan


Population growth entitles Washington to another seat in the US House of Representatives. Washington State is being redistricted.

The new redistricting map is the product of a bipartisan committee headed by Republican commissioner Slade Gorton and Democrat commissioner Tim Ceis, both of King County.

Under the plan, Thurston County is almost entirely in the new 10th District including the Cities of Olympia and Yelm. Bits of other counties include the Cities of Shelton (Mason County), Dupont and Puyallup (Pierce County). This seat is calculated to be very safe for the Democratic Party.

The new layout will leave the Democratic Party in control of 5 districts and the Republican Party in 4. Ironically, the First District goes from a safe Democratic party seat to more of a toss up.

Its not a done deal yet - the plan will be finalized January first.

The district maps
The current map from 2001
The new map

Sources:
Seattle PI
The Olympian

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Update 1/5/12 - The plan is finalized and is being transmitted to the Legislature on 1/9/12

Wednesday, December 14, 2011

Governor Gregoire to increase taxes

Gregoire finally announced the specifics of her plan to deal with the state's overspending - She really plans to increase of the base sales tax to 7%. The total sales tax you pay will vary according to the rate in the taxing authority you live in. Seattle will be 10%. This will cost taxpayers at least $5 billion over the next 10 years. Don't think this sales tax hike will be "temporary".

Gregoire's political pals announced higher gas taxes and car tab taxes costing taxpayers $21 billion over the next 10 years. Gregoire has had a long running affair with raising fuel taxation. In November, the voters rejected a 2 cents per can of pop in taxes. Instead of taking the hint, Gregoire is pushing for $26 billion in higher taxes.

Washington State voters need to un-elect a politicians whose only skills are taking more of our money, mis-managing state government, and making a bad economy even worse. Gregoire and her tax and spend Demo-buddies need to go.

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A couple of possible new fees/taxes you'll be seeing

HB 2166 - A new and additional tax on "solid fuel burning devices" (wood stoves). Buy a sweater.
SB 5981 - A seed dealer license fee, which will primarily impact "Grown in Washington" foods. The impact would be small, but the attitude is all wrong.

What other people read on this blog

Effing the ineffable - Washington State elections sometimes have been rigged.

“It is enough that the people know there was an election. The people who cast the votes decide nothing. The people who count the votes decide everything.”
-- Joseph Stalin

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