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Wednesday, April 13, 2011

The Final Budget Proposal: Still Super Ugly

Posted by on Wed, Apr 13, 2011 at 6:01 AM

Last night leaders in the state senate unveiled their plan for balancing the $5.3 billion budget shortfall. In broad strokes, it's the same as everything we've heard before: cuts, cuts, cuts, and no new revenue.

We'll be looking at this and other Olympia budget proposals more closely in the coming days, I'm sure, but for now it's worth reminding that there were other ways to get the necessary $5.3 billion than slashing education funding and taking essential social and health services away from the neediest people in the state.

Here are two of them:

1) Stop giving away $6.5 billion in state money annually via tax loopholes that benefit Wall Street banks, cosmetic surgeons, and private jet enthusiasts. If lawmakers got serious about closing these tax loopholes, they could raise the $5.3 billion they need over the next two years in a flash.

2) Lay an income tax on the wealthiest Washingtonians. Moderately taxing the earnings of the 38,400 richest people in this state could basically solve the entire budget problem in one stroke.

Instead, says Anne Martens, spokesperson the Our Economic Future Coalition, this senate budget "only balances on the backs of our most vulnerable citizens, and at the expense of our future and our quality of life... As with the House budget released last week, these cuts are unsustainable."

 

Comments (21) RSS

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Urgutha Forka 1
For all the republican cries of "if we tax the rich, they'll leave the state!" have they ever considered that if you put all the burdens on the workers, the workers will leave the state?
Posted by Urgutha Forka on April 13, 2011 at 6:08 AM
Kinison 2
Didn't voters, statewide, reject the income tax last November? How can The Stranger propose something that's not only political poison, but rejected by its citizens?

The irony is that on side, you are bitching, moaning and complaining about the possibility of the deep bore tunnel not actually getting the vote, ignoring the will of the people!!!! On the other, a vote was taken for a state income tax, was soundly rejected, but hey, lets do it anyway, you know, without a statewide vote and ignore the will of the people.

These other ways of patching the budget are no different than what was already suggested and rejected in our state, no different than what is suggested (and rejected) in a dozen other states. I think a state income tax and the closing of tax loopholes is a good idea, but when ideas like that have virtually no chance at getting passed into laws, you need to come up with DIFFERENT ideas, rather than replaying the same record over and over again.
Posted by Kinison http://www.holgatehawks.com on April 13, 2011 at 6:58 AM
Cato the Younger Younger 3
And you know what people will do? Bend over and say "give me another one sir!"

Though the protests are really really cute. Such of a retro throw back to the 1960's and such. I mean they are pointless and powerless to stop the corporations but they really are charming.
Posted by Cato the Younger Younger on April 13, 2011 at 6:59 AM
4
They seem to have no problem cutting the pay of teachers while adding more requirements and restrictions to public education - why so timid about taxing the rich?
Posted by StuckInUtah on April 13, 2011 at 6:59 AM
5
Policy makers in Olympia can’t close the budget gap by focusing only on slashing services like education and healthcare that people rely on. It’s time to extend the ‘all-cuts’ approach to include cuts to special-interest subsidies and tax exemptions that don’t serve a well-defined broad public interest.

As a member of the “Our Economic Future” coalition, WashPIRG recognizes that hundreds of tax loopholes and subsidies have escaped scrutiny, meaning a loss of revenue that should be available to balance the budget without cuts that are devastating thousands of Washington families, worsening existing economic inequalities, and harming our economic recovery.

It’s time to eliminate tax exemptions that were intended to help emerging businesses that have now matured and no longer need them. There’s no reason to maintain giveaways like B&O subsidies that were put in place to stimulate economic activity or create jobs that have failed to materialize.

The big banks on Wall Street got their bailout and are now back to giving out huge bonuses, but the state still gives them a $100 million a year tax break. The Legislature needs to revisit giveaways like this and ask if they still make any sense.”

Meanwhile, at the other extreme are scores of smaller tax breaks that add up to hundreds of millions of dollars per year in wasteful government spending – yes, SPENDING.

If the state wrote a check for $180,000 each year and gave it to poultry farmers to buy bedding for chickens, even the most conservative Republicans would be outraged; but for some insane reason, they turn a blind eye to this spending when it’s done as a “tax exemption.”

If the Basic Health Program provided Viagra, there would be calls for it to be eliminated – but it’s fine to pass on charging sales tax for it and other medically unnecessary drugs.

Many claim that exemptions are necessary to attract or maintain economic activity – but would there be a loss of economic activity or jobs if the state eliminated B&O exemptions for fish cleaning businesses and Christmas-tree farms, and instead made them pay their fair share like other businesses?

It’s time for everyone in Olympia – Democrat and Republican alike – to stand up and tell taxpayers whose services are being cut why these exemptions make sense.

Steve Breaux
Washington Public Interest Research Group
More...
Posted by WashPIRG - Breaux on April 13, 2011 at 7:06 AM
6
Read @5--it's long but lots of good information. Go WashPIRG!
Posted by Beth on April 13, 2011 at 7:12 AM
7
maybe you should spend half as much time bashing the dumbass voters who approved 1053 MAKING BOTH OF YOUR IDEAS IMPOSSIBLE as you do bashing the legislature
Posted by reasonablecitizen on April 13, 2011 at 7:14 AM
Max Solomon 8
well played, eyman. you crippled state government. specie recti decipimur, indeed.
Posted by Max Solomon on April 13, 2011 at 7:22 AM
9
The richest 38,400 Washingtonions are always going to have enough money to balance the budget. That taxing the rich "could basically solve the entire budget problem in one stroke" is a factual statement, not a reason to do it.

That statement will always be true, whether the number is the richest 10,000, 38,400, or 100,000. We "could basically solve the entire budget problem in one stroke" by taxing any group of 38,400 Washingtonians; that doesn't make it the right solution.
Posted by troy on April 13, 2011 at 7:27 AM
Canadian Nurse 10
@5: While your suggestions make sense in theory, I know that in my region, a lot of small scale poultry farmers and fisheries workers are living below the poverty line. Decreasing tax exemptions could easily bankrupt many people.

Making it impossible to financially survive while providing your area with fresh, local protein sources could be detrimental to local health in the long run. Particularly since there appears to be a connection between the size of the farm and the likelihood of contamination. The last thing you want to do is bankrupt the smaller farmers, leaving only big factory farms behind.

Obviously you have a better sense of the state of farming/fishing in your area than I do. I would say, personally, that I do want my government writing checks to farmers if it means a greater variety of fresh food is produced within 100 miles of my city.
Posted by Canadian Nurse on April 13, 2011 at 7:36 AM
11
@10: WashPIRG has been active in promoting food safety, better nutritional standards (esp. in school lunches) and this summer will be focusing on reforming agricultural subsidies.

As for the topic at hand, it's unfortunately that most agricultural subsidies - at both the State and Federal level - are sold as being beneficial to "small family farms" but in reality are skewed towards corporate agribusiness.

WashPIRG isn't advocating for the blind elimination of any subsidy, exemption or loophole - what we want is for the Legislature to give as much consideration to cutting these giveaways as they have to spending cuts on education and healthcare.

Any tax exemption that can be empirically demonstrated to benefit the public interest on a holistic level should be maintained - but those that can't should be eliminated.

Steve Breaux
Washington Public Interest Research Group
Posted by WashPIRG - Breaux on April 13, 2011 at 7:56 AM
12
Fuck the State dems. Seriously. I hope every single one that votes for this budget gets a primary challenger because none of them are getting my vote again.
Posted by giffy on April 13, 2011 at 8:06 AM
13
@12, what can they do that the voters didn't already overturn in November? If it were not for the dems. most of the services receiving cuts would be eliminated.
Posted by sall on April 13, 2011 at 9:08 AM
gloomy gus 14
Nurse, that was very thoughtful. I like to use locavore stuff but rarely give a thought to how they're eking out a fragile existence. Mr. Breaux @11, I hope you guys can help willing legislators plot a roadmap to get from where they are to where you want them.
Posted by gloomy gus on April 13, 2011 at 9:31 AM
15
Shorter summary of Senate budget: cuts everything but the crap. More at Undead Olympia – http://www.undeadolympia.com/2011/04/12/…
Posted by Undead Olympia on April 13, 2011 at 9:33 AM
angelallwayz206 16
I was part of the Rotunda 100 and I think we Need to Mobilize and show our government that "We The People" Decide not them money hungry bastards!
Posted by angelallwayz206 on April 13, 2011 at 9:38 AM
17
You know the three things you listed only add up to $200 million right? If you want to be serious, why not end tax loopholes for food, tribes and non-profits. That'd fix the budget faster than you can say 'good jobs at Boeing and MSFT'.
Posted by 2/3 if voters can't all be wrong, right? on April 13, 2011 at 9:52 AM
18
@13 They can keep trying. Fight the 2/3 requirement in court. Close some loopholes.

Hell just pass an income tax, along with a big cut in sales tax, and fight harder for it this time.

My reps don't represent the state, they represent this district, and this district supports more revenue.
Posted by giffy on April 13, 2011 at 9:56 AM
19
@18, They can't pass an income tax or close loopholes because of the November election. The democratic base in the rest of the state voted for Eyman's initiatives which hamstrung the Legislature and undid their work last year. It sucks, I agree. But how do you suggest Seattle goes about bringing the rest of the state on board with these ideas for revamping the tax system?
Posted by sall on April 13, 2011 at 10:08 AM
Original Andrew 20
It's time to give the public the Somalian-Mad Max-failed state they keep demanding. Shut down the city and state governments totally, starting with all public schools and universities. It's not like education is doing any good since our population is even more aggressively ignorant, greedy, sadistic, hate-crazed and psychotic than ever. Never mind that corporate taxes are at record lows and corporate profits are at record highs since the middle class collapsed.

The Free Market will solve all of problems someday! 95% of us will be burying our parents in our back yards and eating pigeons as the last remaining food source once the dogs and cats are gone BUT THAT'S THE WAY WE LIKE IT GAWDDAMMITT!!!!!
Posted by Original Andrew on April 13, 2011 at 10:53 AM
Will in Seattle 21
Another alternative would to be to let everyone in King County vote to form our own State, and let the rest of the state freeze in the dark.

We'd have one economic powerhouse state and our poor neighbors outside it.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on April 13, 2011 at 11:39 AM

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