Olympia This Week

Democrats’ state income tax on capital gains “about [taxing] all of us”  (Seattle Times)

Senate Democrats passed a state capital gains income tax on a 25-24 vote after more than four hours of debate. Only four Democrats voted no, including Senators Annette Cleveland of Vancouver, Steve Hobbs of Lake Stevens, Mark Mullet of Issaquah, and Tim Sheldon of Potlatch. All Republicans voted no. Democrats rejected more than a dozen Republican amendments to the bill.

If it passes the State House, the capital gains tax will face a costly legal battle. If the tax manages to survive the legal battle, Democrats will most certainly expand its impact over time.

Republican Sen. Brad Hawkins told the Seattle Times, “It’s not about the ultrarich. It’s about all of us. Over time, once this gets implemented and once the court potentially upholds it, then all of the exemptions will over time be whittled away to the point where it does impact all of us.”

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Inslee’s announced reopening resembles Senate Republicans’ “Open Safe, Open Now” plan  (SRC)

Jay Inslee announced that Washington would move forward to reopening based on a phased approach, with Phase 3 beginning on March 22.

Phase 3 allows businesses statewide to open at 50 percent capacity, including restaurants and bars. The plan also allows alcohol service to be extended to midnight.

Professional sporting events can also have up to 25 percent capacity at stadiums.

Inslee’s plan echoes much of Senate Republicans’ “Open Safe, Open Now” plan.

“I so appreciate that the governor incorporated many details of our ‘Open Safe, Open Now’ plan for moving to Phase 3 into the plan he announced today. We hoped he was paying attention to our good ideas, even though they came from Republicans. Today’s announcement shows what can happen when all voices are heard. I do wish he had worked with us more directly since collaboration is how we are going to recover fully. But I am very encouraged,” Senate Republican Caucus Chair Ann Rivers, R-La Center, responded.

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The News Tribune Editorial Board: “Little appetite among Democrats to challenge Inslee” (News Tribune).

The News Tribune Editorial Board blasted Washington Democrats for failing to advance even one of the many proposals that “sought to put limits on the executive branch’s emergency declarations ranging from 14 days to 30 days, perhaps longer with amendments.”

Given the proposals came after Jay Inslee refused to call the Legislature into a special session during the height of the COVID-19 pandemic, the bills are timely and proven worthy.

As last Tuesday was the cutoff day to advance bills this legislative session, Democrats have officially killed all the bills that sought to address the issue of emergency powers.

But, as the editorial board put it, “in truth it was never really alive.” The editorial board explains, “The problem is that there’s little appetite among Democrats to challenge Inslee. That’s a shame. Power-sharing between the three branches of government shouldn’t be a partisan issue.”

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Sen. Schoesler talks Democrats’ gas tax with KVI Radio’s John Carlson (SRC audio)

Sen. Mark Schoesler joined KVI Radio’s John Carlson to discuss Democrats’ transportation proposals and Governor Jay Inslee’s push to increase the cost of gas.

Democrats are attempting to combine Inslee’s Low Carbon Fuel Standard (LCFS) with a new state transportation package. Schoesler discusses how the LCFS would increase the cost of living for hardworking taxpayers.

The end result is a higher gas tax – increasing costs paid at the pump, costs to heat homes, etc. – without road improvements and minimum positive environmental impact. In the near future, a gas tax levied by a LCFS could reach $1 per gallon.

Senate Republicans have a better plan to pay for transportation improvements across the state – and it does not include any new tax increases. Schoesler argues for phasing in a plan that would take part of the existing sales tax of vehicles and diverting the money from the general fund to the transportation budget.

It’s a commonsense approach.