Olympia This Week

Senate Democrats’ budget proposal relies on capital gains income tax (Seattle Times)

Washington Senate Democrats released their two-year budget plan that includes a state income tax on capital gains. Their proposed $59.2 billion state operating budget isn’t the whole picture as it does not include additional spending of $7 billion from the federal government’s COVID-19 relief package. And – in a move that can be only described as irresponsible – Senate Democrats’ budget proposal relies on an illegal tax.

The proposal depends on a state income tax on capital gains of 7% on income above $250,000. Of course, Washington state’s constitution bans an income tax. If passed, a state income tax on capital gains will face a lengthy legal challenge, leaving funding for Democrats’ record-breaking spending uncertain. Making Democrats’ budget proposal even more irresponsible, spending also relies on completely draining the state’s rainy-day fund. This is despite greater than expected revenue projections

~~~~~~~~
        
Senate Democrats’ budget proposal indicates both cap-and-trade and LCFS (Washington Policy Center)

Washington Senate Democrats’ budget proposal includes both a cap-and-trade system and a low-carbon fuel standard (LCFS). That would add an estimated 20 cents to the cost of a gallon of gas in 2023. Costs would then increase by “between 41 and 50 cents per gallon, using current projections, in 2028.” The number would increase even more for diesel.  Senate Democrats’ budget also includes more than $10 million to implement both an LCFS and cap-and-trade.

As the Washington Policy Center’s Todd Myers explains, contrary to supporters’ claims, costs are entirely passed to consumers. The approaches are “needlessly wasteful, and the additional cost does nothing extra to reduce CO2 emissions.” Rather, it “simply increases the amount of money Washington residents pay to biofuel companies.”

In other words, Democrats’ climate policy is “first about generating state revenue and rewarding special interests, and effectively reducing CO2 emissions is secondary.”

~~~~~~~~
        
WA Democrats pass bill to restore voting rights to felon directly following release (My NorthWest)

A bill HB 1078 (https://app.leg.wa.gov/billsummary?BillNumber=1078&Year=2021&Initiative=false) – sponsored by Democrat State Rep. Tarra Simmons – that restores voting rights to felons the moment they are no longer incarcerated passed the state legislature. Under the bill, felons would “retain that right regardless of whether or not they can pay off post-incarceration expenses.”

In other words, felons will retain voting rights despite failing to fully pay back their debt to society. Democrats shut down amendments to the bill, including ensuring sexual offenders against children must finish their sentences before voting, ensuring people who are back in confinement because they have violated their community custody are not eligible to vote, and more. Senate Democrats also floor leaders shut down debate on final passage. All Senate Republicans voted no.

~~~~~~~~
        
Inslee updates K-12 social distancing guidelines (The Chronicle)

Following new federal guidelines, Gov. Jay Inslee updated the minimum requirements for distancing between K-12 students in classrooms from 6 to 3 feet. The guideline shift is effective immediately. Inslee’s decision to update the guidelines also comes after the request of State Republican leaders Rep. J.T. Wilcox, R-Yelm, and Sen. John Braun, R-Centralia, urged Inslee to follow the CDC’s new guidance allowing for 3 feet. 

Wilcox and Braun wrote, “We’re hearing from school districts that the six-foot spacing of students is the largest hurdle to reopening classrooms… The children limited to remote instruction have been ready for a long time to see their teachers in person. Families need for their students to receive the best possible form of instruction. Students who have been allowed back on campus have shown they can follow established safety protocols.”

~~~~~~~~
        
Senator Mike Padden on housing affordability  (Cheney Free Press)

In an op-ed for the Cheney Free Press, Republican Senator Mike Padden (LD-4) explains why he introduced Senate Bill 5024, “a measure to help increase the supply of affordable housing by removing barriers to condominium construction.” With housing costs on the rise across Washington state, SB 5024 seeks to reduce the cost of developing condominiums, making units more affordable.

Padden points out that – right now – the “cost of a condominium unit can be as much as $200,000 more than the cost of an identical unit that happens to be a townhome.” This is due to the “additional inspection costs required for condominiums.” If the legislature approves Padden’s bill, “condominiums with 10 or fewer units and with no more than two stories would be exempt from the costly requirement to submit building enclosure design documents and obtain periodic inspections throughout the course of construction.” It would also “allow funds deposited for the purchase of a unit to be used for construction costs, under certain conditions.” 

The bill passed the Senate with a 37-12 vote.  The bill is currently in the House Civil Rights and Judiciary Committee. You can comment on the bill here.