Bill aims to aid low-income

Democratic lawmakers lend their support to sales tax credit for families

By Brad Shannon | The Olympian • Published January 28, 2008

A sales-tax credit for low-income working families has quickly gained support of Democratic leaders in the state House and Senate, but political realities are clouding its future.

The proposal from Democratic Sen. Craig Pridemore, D-Vancouver, would let low-income taxpayers that qualify for the federal Earned Income Tax Credit receive an additional 10 percent sales-tax rebate from the state — on average about $168 per qualifying family.

The program could cost $60 million a year for the estimated 350,000 families. Checks would go out starting in 2009, and Pridemore's idea is to use the rebates to lessen the sales tax load on lower-income families, which pay a higher percentage of income in state taxes than higher income families.

House Speaker Frank Chopp, D-Seatttle, said it might be necessary to cut the tax break in half.

"Five percent is a lot less expensive, and that may be the way we do it," Chopp said.

Senate Majority Leader Lisa Brown, D-Spokane, said it might be necessary to create the program this year but determine the amount of assistance next year when the state's budget outlook is clearer.

Brown and Chopp have concerns about saving at least $1 billion for the next budget cycle. Brown said concerns about the economy have prompted Senate and House leaders to "scrub" spending plans adopted last year to see if they can find "efficiencies" that lower the state's outlay in the two-year period.

A total of 21 lawmakers signed on as co-sponsors of Senate Bill 6809, including Sen. Karen Fraser, D-Thurston County, and a companion measure is in the works for the House. Only one Republican supporter, Sen. Jerome Delvin of Richland, has signed on.

Senate Minority Leader Mike Hewitt, R-Walla Walla, said there is no GOP caucus position on the bill yet, and he is open to learning more about it — while keeping an eye on overall spending and Republicans' preference to lower it.

"At first blush this sounds good but I need to take a look at the program," Hewitt said.