It’s an appropriate time for South Sound residents to weigh in and have their voices heard in pivotal tax debates at the federal, state and local level.
In Washington, D.C., a panel of six Republicans and six Democrats serving on a so-called “supercommittee” has until Nov. 23 to recommend deficit savings of $1.2 trillion.
House Democratic leader Nancy Pelosi of California has said she wants a compromise that is “big, bold and balanced,” a phrase that Democrats use to convey an insistence on higher tax revenue.
In fact, several officials have confirmed that panel member Sen. Max Baucus, D-Mont., outlined a proposal on behalf of his party’s negotiators that includes $1.3 trillion in increased tax revenue over a decade, and $1.3 trillion in spending cuts. Another $1 trillion in savings would come from the presumed reduction of Pentagon costs in Iraq and Afghanistan and $500 billion more from a reduction in interest costs resulting from declining deficits.
Those savings would be on top of cuts that Congress approved earlier in the year of nearly $1 trillion.
Republicans are pushing for somewhat more than $2 trillion in deficit savings over a decade. Less than half of that amount would come from increases in items such as Medicare premiums, the sale of public lands and airport fees – measures that increase government revenue without changing personal or corporate taxes.
Spending cuts include about $500 billion from Medicare over a decade and another $185 billion from Medicaid.
At the state level Gov. Chris Gregoire has made clear that she wants new state revenue to avert some of the $2 billion in cuts needed to put the state’s finances back in balance. She does not have specific new tax or fee idea to champion, but knows that any tax vote will have to come from state lawmakers she has summoned to Olympia for a special legislative session beginning Nov. 28.
Plenty of advocates are lining up with tax and revenue ideas – some new, some we’ve heard before.
Two oldies are a temporary one-penny increase in the state’s 6.5-cent sales tax – which could raise $1 billion a year – and an expansion of tribal style electronic slot machines to taverns and bars. The latter might raise more than $100 million.
Then there is the labor movement’s favorite that plays on anger at Wall Street: ending a bank tax break worth $172.6 million on home-loan interest earnings.
Others have called for reductions or eliminations of tax breaks for other special interests. Suggested targets for increased revenue range from repeal of the mortgage-interest exemption for banks, to reinstatement of a pop tax, repeal a jet-fuels exemption, adding a surcharge of 10 percent to sales of cars, boats and planes valued at more than $50,000, adding a 5 percent state admissions tax that excludes youth and K-12 sports events and repeal the excise tax exemption for motor fuels.
House Republican leaders have said they would consider ending tax incentives that can’t show they are creating jobs.
At the local level, outgoing Olympia Mayor Doug Mah seems to have surprised his colleagues on the City Council with a proposal to put two tax measures to a public vote in the next six years – one to purchase a park on the downtown isthmus and another for phase two of Percival Landing reconstruction.
Mah suggested the items be included in the city’s six-year Capital Facilities Plan. Though the council took no action, a majority of members didn’t express support for putting the projects in the plan.
Both the isthmus park and Percival Landing are city goals, but it hasn’t identified the money to pay for them. Mah said the only way the projects can be completed is through extra tax dollars, because they’re so expensive.
We like the idea of public votes – at both the city and state level – for proposed revenue increases. Let the voters decide whether they want to reach deeper into their pocket to fund specific projects like the isthmus park or offset cuts in K-12 education and health care for the needy at the state level with a higher tax or elimination of a tax loophole.
Whether you agree or disagree, voice your opinion.
At the federal level, direct comments to Sen. Patty Murray, D-Wash., a member of the supercommittee, by calling her D.C. office at 202-224-2621.
File your comment with South Sound legislators by calling the legislative hot line at 800-562-6000.
And direct opinions about the mayor’s tax proposal by calling City Hall at 360-753-8447.
Now is the time to be heard.
