Opinion
Courtesy of Sen. Jeanne Kohl-Welles
Suspending I-960 meets the needs of the people
By State Sen. Jeanne Kohl-Welles, 36th District
In 2007, 51 percent of Washington voters approved Tim Eyman’s Initiative 960.
The initiative has many provisions, but the provision that affects the legislature the most is a requirement that all tax increases must pass each chamber of the legislature by a two-thirds vote.
This is the same requirement to pass a constitutional amendment.
Last week, the senate approved Senate Bill 6130, which suspends I-960 until July 1, 2011.
The initiative as enacted makes it nearly impossible for the legislature to pass a fair and sustainable supplemental budget. And, not just because it reduces our ability to raise taxes.
This Eyman initiative is so broad that it severely limits our ability to close tax loopholes that no longer create the jobs they once did, limits our ability to end unfair tax breaks for out-of-state businesses that don’t apply to our in-state businesses, and even prevents us from transferring funds that could save vital government programs.
The simple truth is that the will of the people is about more than just reducing their tax bills:
- In 2009, voters rejected efforts to artificially limit services and cut taxes.
- In 2007, voters ended the supermajority vote for school levies.
- In 2001 and 2008, voters increased funding for long-term care services.
- In 2006, voters upheld the state tax and dedicated revenues to education.
- In 2005, voters upheld the gas tax.
- In 2000, voters increased funding for smaller class sizes.
During the three-hour floor debate of SB 6130, the minority party repeatedly claimed that by suspending this initiative we were ignoring the will of the people, and we should never change a voter-approved initiative.
To that I reminded my colleagues that we are a legislature, and the legislature is created to pass new laws and update old ones.
We are elected to be responsive to the needs and the demands of the public.
Amending laws created by voter-approved initiatives as well as legislature-created laws is a key part of being responsive, and both parties have done it.
In fact, Republicans as well as Democrats have introduced bills repeatedly that go against “the will of the people,” all with much wider margins than that of I-960, which was approved by just 51 percent of the voters.
In 1998, voters approved an initiative (66 percent-34 percent) to establish a state minimum wage. Since then, 22 bills have been introduced to amend the initiative, three in the 2009 session. Most of the sponsors were in the minority party.
Also in 1998, voters approved a medical marijuana initiative (68 percent-32 percent). Since then members of both the minority and majority party have introduced six bills to clarify, expand or regulate medical marijuana use.
In 2000, the voters approved limits on the use of body gripping traps for animals (55 percent-45 percent). Since then, there have been eight bills introduced by members of both parties to amend that initiative – including three just last year.
In 2000, voters approved smaller classroom sizes (72 percent-28 percent) and cost of living increases for teachers (63 percent-37 percent). Since then, budgets supported by members of both the minority and majority, in 2003 and 2009, have suspended or limited funding for these initiatives.
I-960 was passed in 2007, a much different time from now.
Today, our neighbors are hurting, many are unemployed and many of those who are not are shouldering pay cuts.
Our budget is facing a record revenue shortfall and vital government programs – programs that secure our economic future like the state need grant for college students – are facing elimination.
Amending I-960 is about being responsive, being fair and doing what’s best for our state.
Sen. Jeanne Kohl-Welles (D-Queen Anne) represents Queen Anne, Magnolia, Phinney Ridge, Ballard and Belltown in the Washington State Senate. She is chair of the Labor, Commerce & Consumer Protection Committee.
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Comments
I-960
This is a good example of irresponsible voting by the state legislature's vote to suspend I-960. This initiative required a 2/3 vote in the house and senate when it comes to raising taxes. Understand that I am not a fan of the super majority concept. The federal, state and local governments (including school district, fire districts) have always used a simple majority. Case in point is that I-960 passed with a 51% simple majority. However, the point is really that the state legislature is (1) throwing aside the will of the voters, and (2) increasing taxes in a recession. Neither one of these is acceptable to me and I would have voted against both.
Initiative 1069 Change the State Seal to a Tapeworm Attached to
Greeting from Jim Vaughn and Citizens for Economic Stimulus,
With Initiative 960 being repealed that in turn opens the flood gates for Olympia to tax the life blood out of the citizens of Washington and the Push Back Rally being held on 15 February 2009, in Olympia, to protest tax increases, we are intent on maintaining pressure by getting Initiative 1069 on the ballot so show the level of voter dissatisfaction with the current tax and spend policies.
We are having a contest for the design of the proposed seal and a design for bumper stickers for Initiative 1069. Upon completion of the contest 28 February, we will begin to sell bumper stickers as a show of force. We ask that you join us in our efforts to put pressure on Olympia to become fiscally responsible and to stop raising taxes as the governor had promised.
Due to our states full court press to increase taxes, I was motivated to create an initiative to replace our state seal from with the vignette of General George Washington as the central figure to a tapeworm dressed in a three piece suit attached to the lower intestine of the taxpayer as the central figure and encircling the vignette the words “Committed to sucking the life blood out of each and every tax payer.”
If you are like most people, your initial response is to chuckle or have a serious belly laugh. However, the sad truth is this is far from funny. Now that have your attention, please spend a few minutes to read why I am serious about our government being fiscally responsible and to stop raising taxes.
Before I proceed, please note that Initiative 1069 is directed at RCW 1.20.080. However, Article XVIII of the Washington State Constitution states, The seal of the State of Washington shall be, a seal encircled with the words: "The Seal of the State of Washington," with the vignette of General George Washington as the central figure, and beneath the vignette the figures "1889." This cannot be changed by an initiative. Initiative 1069 is designed to send a loud and clear message to our state government.
Billions and trillions of dollars of debt is such an enormous amount of money that it does not seem quite real to the individual tax payer. This makes it easy for government officials to spend and spend and spend. However, the debt is real. As a result, it is time for our state government to quit raising taxes. We are not asking Olympia to more with less. We understand that it is time for Olympia to do less with less. It is time to prioritize spending and reduce government.
Ask yourself what happens when the economic stimulus money is spent and we have not created long term employment for our citizens that will allow us to repay our debt to China, Brazil, etc. We cannot expect them to lend us more money. As a result, the dollar will be devalued and we will see hyperinflation. It could result, in foreign countries refusing to trade with us. No money – No oil – we are back to horse and buggy days. This will not be the Great Depression, but the Greatest Depression.
This is your chance to be part of a grass roots effort and have your voice heard not only in Olympia but send a message to Washington D.C. about government spending. Please send your designs for the seal and bumper sticker NLT 25 February, 2009 or support our efforts by ordering a $20 bumper sticker and/or sending a donation to:
Jim Vaughn
Citizens for Economic Stimulus
14416 168th Street
Orting, WA 98360
253.241.9645
Jvaughn50@comcast.net
Initiative 1069
Replace the Seal of the State of Washington
An act relating to changing the Seal of the State of Washington from the vignette of General George Washington as the central figure, and beneath the vignette the figures "1889" to a tapeworm dressed in a three piece suit attached to the lower intestine of the taxpayer as the central figure and encircling the vignette the words “Committed to sucking the life blood out of each and every tax payer.” Amending RCW 1.20.080 and adding eight new sections.
Complete Text
BE IT ENACTED BY THE PEOPLE OF THE STATE OF WASHINGTON
Intent
New Section 1. Whereas Washington State has lost a significant portion of our industrial base resulting in a high unemployment rate, our state government continues to grow and spend at unsupportable rates by increasing taxes at a time when our citizens can least afford it. No sensible case can be made for increasing taxes and failing to stream line our state government. Not one of these taxes existed 100 years ago, and our state and our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world
(1) The Tax Justice Digest lists Washington State as the leader of the “Terrible Ten” states for tax…These ten states stand out for the extraordinary degree to which they have shifted the cost of funding public investments to their very poorest residents.
(2) Whereas, the U.S. is among eight countries with extra corporate tax rates imposed by state or local levels of government. The burden of these state-level taxes is somewhat lessened in all but four states because they can be deducted from federal taxes. In the State of Washington the Business and Occupation Tax on gross receipts does not allow for a deduction for monies paid for federal taxes. As a result, our business experience double and triple taxation, in cities that also charge businesses a B&O Tax.
(3) Whereas Washington State does not cut its business taxes in the next year, the U.S. federal rate would have to be cut to 20 percent in order to bring the combined federal-state rate down to compete with the European Economic Community. Our state officials fail to be cognizant of the fact that we are not only competing against other states for investment and jobs, but against the rest of the world. The emerging low-tax countries in Europe and Asia benefit from our high tax rates. In just the past year, at least six countries have announced plans to cut their corporate tax rates: Canada, Hong Kong, Korea, South Africa, Spain and Taiwan. In the end, the key to improving Washington’s business tax competitiveness is to work toward the common goal of lowering the overall business tax burden. Otherwise, the businesses in our state will continue to fall behind in the global tax race.
(4) Whereas there are only four states that have a Gross Receipt Tax, known in Washington as the Business and Occupation Tax due to the repressive nature. Of the four remaining states Washington has the worst corporate tax rate of these four. A comparison of the states that have GRT:
(a) Delaware: Retail can deduct $80,000 per month. Manufactures can deduct $1,000,000 per month.
(b) Kentucky: Business can choose between Gross Receipts and Gross Profits. Under $3M are exempt.
(c) Ohio: Business under $150,000 is exempt; those with receipts between $150,000 and$1M pay $150.
(d) Washington: The worst tax of all 4 GRT states. Business under $28,000 exempt.
(e) As a result, the government of The State of Washington fails to provide an environment that allows our citizens to economically compete in the global market by eliminating the B&O tax which discourages capital investment by our businesses and discourages purchases of capital equipment which are directly related to growth and employment.
(5) Whereas Governor Gregoire in July of 2005 stated during a meeting with the Clark County High-Tech Council that she was looking for ways to reform the B&O tax to make it less onerous on business and four years later in February of 2009 in speech to the Association of Washington Business, Governor Gregoire stated that she would like to overhaul the business and occupation tax, calling the tax, "ill-conceived" and harmful to small businesses. Eight months later, in October of 2009, she came out with 23 revenue alternatives two of which are aimed at increasing the B&O Tax which earlier in the year she said was "ill-conceived" and harmful to small businesses.
(6) Whereas the citizens of our state are currently paying in excess of forty taxes and the State of Washington continues to invent new ways to tax the citizens by proposing twenty three revenue alternatives.
Section 2. RCW 1.20.080 is amended to read as follows:
The seal of the state of Washington shall be, a seal encircled with the words: "The Seal of the State of Washington," with the vignette of General George Washington as the central figure, and beneath the vignette the figures "1889" and shall be composed as appears in the illustration below: (For the illustration, please refer to paperback RCW.) [1967 ex.s. c 65 § 1.]
The Seal of the State of Washington shall be a seal encircled with the words: Committed to sucking the life blood out of each and every tax payer,” with the vignette of a tapeworm dressed in a three piece suit attached to the lower intestine of the taxpayer as the central figure. (For the illustration, it will be selected from submissions submitted by the tax payers.)
I-960
Have you even read Article II, Section I of our state constitution?
".....but the people reserve to themselves the power to propose bills, laws, and to enact or reject the same at the polls, independent of the legislature, and also reserve power, at their own option, to approve or reject at the polls any act, item, section, or part of any bill, act, or law passed by the legislature.
(a) Initiative: The first power reserved by the people is the initiative....."
Note where it says INDEPENDENT OF THE LEGISLATURE and THE FIRST POWER RESERVED BY THE PEOPLE.
I guess you know better than us silly stupid voters huh senator.... we voters really didn't mean to limit your ability to raise taxes... and besides it was only 51 percent that voted that way.... and other legislators have went against the will of the people so it's ok for you to do it.... how ridicuious and arrogant you are!