Tim Eyman’s I-960—which mandates a two-thirds vote by the
legislature and an advisory vote by the public to pass tax
increases—prevailed on Election Day. But like every Eyman
initiative, this one has major constitutional problems.
But why waste time taking the case to the Washington State Supreme
Court? Yes, the judges are likely to throw it out. But the Democrats
are just as likely to jilt their base and rescue Eyman by writing 960
into law.
That’s exactly what Democratic governor Christine Gregoire
recommended last week when yet another Eyman initiative, I-747
(a
1 percent annual property-tax cap
passed in 2001), was tossed by
the state supreme court.
Clearly, Gregoire thinks voters are clamoring for tax reform. But if
voters are clamoring for tax reform, and I-747 has been on the books
for five years, then obviously, I-747 doesn’t work. Why go out
of your way to resurrect it?
Eyman’s fix doesn’t work because it keeps our regressive system in
place—lower-income homeowners spend 6 percent of their income in
property taxes, compared to 2.3 percent for wealthy homeowners.
Rather than trembling in her shoes about the popularity of I-747,
Gregoire should recognize the reality on the ground: I-747 has failed
and people want real solutions. She should take this opportunity to
craft a new solution that doesn’t place an unfair property-tax burden
on the poor
and middle class.
One progressive proposal gets to the root of the problem. Known as a
“circuit breaker,” it ties property-tax payments to income. The idea
works like this: When property-tax bills reach a certain percentage of
a homeowner’s income, they get a tax credit. A revenue-neutral
proposal developed by a liberal think tank, the Washington Budget &
Policy Center, would give lower-income brackets a 9.6 percent tax cut,
while the highest income brackets would get a 2 percent increase.
That’s likely to calm voters down.
And it would accomplish another political goal that should be
important to
Democrats like Gregoire. It would pull the rug out
from under Eyman, rather than
getting a chair for him just as the
court
is knocking him down.
Oh, and another political goal Gregoire might want to keep in mind:
Kissing up to Eyman doesn’t play well with her base. “It shows
poor judgment,” says Knoll Lowney, the activist attorney who got 747
tossed. “Isn’t that why she almost lost last time? If she’s going to
win reelection she has to turn out her base. The only voices calling
for renewing I-747 are in Rossi’s camp.” 
