Our Views: Votes on Slew of Initiatives Hinge on Taxation Issues

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    Today The Chronicle’s Editorial Board announces its recommendations for voters on six initiatives, one referendum and two resolutions from the state Legislature.

    These ballot measures will help determine the direction of state government for years to come. It is notable that all initiatives, after two years, can be changed and even repealed by a simple majority of our legislators.

    Initiative 1053, the two-thirds vote requirement — vote yes

    I-1053 would require a two-thirds vote of the state Legislature before raising taxes.

    In recent years the citizens of Washington have voted in similar measures three times, only to be rejected two years later by the Legislature, including in the session earlier this year. It is clear, and has been magnified during the recent recession, that citizens only want tax increases as a last resort, yet year after year the Democrat-controlled state government continues to spend more.

    In less than three months, the Legislature will convene and have to deal with an estimated $4.5 billion budget deficit. With I-1053 in place, they won’t be able to solve our bloated state government by raising taxes without the two-thirds vote.

 

    Initiative 1082, privatizing workers’ compensation — vote yes

    • I-1082 would allow businesses to purchase private workers’ compensation insurance, ending the Department of Labor and Industries’ monopoly.

    If passed, workers would still receive the same level of help. The difference is it would be delivered in a much more efficient manner than L&I. That competition would then force the state L&I to enact its own efficiencies, thus lowering the cost of such insurance to businesses.

    Washington is one of only four states that don’t allow for privatization of workers’ compensation insurance. Supporters of I-1082 cite three examples where privatization has worked in other states: In Oregon, once it happened, premiums have not gone up in two decades. In Nevada and West Virginia, premiums actually decreased.

    Another state, Florida, had the highest workers’ compensation rates in the nation before it enacted a series of changes back in 2003. Now Florida is one of the 10 lowest states in the country when it comes to such rates.

 

    Initiative 1098, the state income tax — vote no

    • I-1098 would tax “adjusted gross income” above $200,000 (individuals) and $400,000 (joint-filers), reduce state property tax levies, reduce certain business and occupation taxes, and direct any increased revenues to education and health.

    Once an income tax is in place in Washington, it is likely in place to stay, and expand beyond those making above $200,000 per year. In just two years the Legislature would be able to expand the tax to all citizens. It will also have a chilling effect on business owners, resulting in less investments into their businesses, less inclination to add workers, and stifle consumer spending.

    While supporters of I-1098 say it will go toward education and health programs, in reality, the state Legislature will have the choice to spend it elsewhere.

    Today the lack of a state income tax helps attract businesses and their jobs. We need to hold onto that advantage. We can’t be passing anything that will cause fewer new jobs.

    Bottom line: I-1098 will raise taxes by $2 billion in its first year. Again, it is not time to raise taxes, but to cut spending.

 

    Initiatives 1100 and 1105, privatizing state liquor sales — vote yes



    • I-1100 would close state liquor stores; authorize sale, distribution, and importation of spirits by private parties.

    • I-1105, the second liquor privatization proposal, would close all state liquor stores and license private parties to sell or distribute spirits.

    With two initiatives on the ballot, these two measures are causing much confusion.

    Let’s make it simple. It is time to end the state’s monopoly on liquor sales. The state should not be promoting and profiting from the sale of liquor.

    And our citizens don’t need to have one of the highest liquor taxes in the nation. I-1000 cuts out the middleman, and would create hundreds of new jobs in the private sector. I-1105 helps in making sure any taxes would go to the proper jurisdictions.

    The two initiatives will lead to convenience and lower prices, and also keep restrictions on liquor sales that are in line with public health issues.

    Initiative 1107, ending arbitrary sales taxes — vote yes

    • I-1107 would end sales tax on candy; end temporary sales tax on some bottled water; end temporary excise taxes on carbonated beverages; and reduce tax rates for certain food processors.

    Without the constraints of a two-thirds vote to raise taxes and fees, the state Legislature at the end of the special session to close a budget deficit enacted a series of taxes on food and beverages. Again, state government needs to pull back on taxes, not increase them. I-1107 would repeal the $300 million in increased taxes in the next three years on bottled water, soda, candy, and processed foods containing meat, fruits and vegetables.

    Referendum 52, authorizing bonds for energy efficiency projects in our schools — vote no

    • Referendum 52 would authorize bonds to finance construction and repair projects increasing energy efficiency in public schools and higher education buildings, and continue the sales tax on bottled water otherwise expiring in 2013.

    We don’t need new programs at this time that cause more debt and subsequently more taxes.

    No, instead we need to be cutting programs and decreasing our debt. R-52 allows the state to raise debt outside of the constitutional limit. R-52 might create about 5,700 short-term jobs, but at a price tag of about $1 billion. That would cost the taxpayer about $162,000 per job.

    House Resolution 4220, deny bail for violent prisoners — vote yes

    • House Joint Resolution 4220 would authorize courts to deny bail for offenses punishable by the possibility of life in prison, on clear and convincing evidence of a propensity for violence that would likely endanger persons.

    The resolution passed 48-0 in the Senate, and 92-4 in the House. This yes vote is a no-brainer.

    Violent criminals awaiting a life sentence should not be bailed out. They can still have a proper trial and justice served; they do not lose their presumption of innocence because they are not allowed to roam free before a trial. We need the protection R-4220 gives us against some of the worst criminals in our midst.

    Senate Resolution 8225, increased borrowing — vote no

    • Senate Joint Resolution 8225 would require the state to reduce the interest accounted for in calculating the Constitutional debt limit, by the amount of federal payments scheduled to be received to offset that interest.

    This resolution, put forward by Senate Democrats known for their penchant to spend money, is nothing more than an accounting gimmick that would allow us to borrow more from the federal government — to take on more debt. It works around the state constitution that limits the amount of money we can borrow. We know all too well the dangers of increasing the ability to take on debt — that has been a major contributor to our wrecked economy. Increasing our ability to borrow money is not in our long-term best interests.