Lobbyists, Voters Circle Tenuous Washington Tax Plan
Will higher taxes on beer, soda, cigarettes and candy fly as a way to balance the Washington state budget?
That's a question few people can answer with certainty Friday. But lots of advocates and industries are trying to influence the outcome as the Washington Legislature drives to adjournment. Tom Banse reports from Olympia.
Do they have a "go home" deal or don't they? The Democratic leaders who control the Washington House, Senate, and governor's office are optimistic they've finally found a palatable mix of temporary and targeted taxes.
This to patch over part of the state's nearly $3 billion deficit. But finding sufficient votes among the rank-and-file is slow going.
Meanwhile, a wide variety of interest groups, such as bottlers, are trying to get themselves off the menu.
Washington Beverage Association president Tim Martin objects to a proposed new tax on soft drinks.
Tim Martin: "We're a very high volume and low margin business. So, if you so say two cents a can doesn't seem like a lot, but passing that tax on means raising prices. Raising prices means lower volumes, which means layoffs."
Similar arguments are being made by the beer, tobacco, and candy industries. Many of their products are stocked in convenience stores, like this one in Olympia.
Customers Alex and Nikki Prieto are among those giving lawmakers the benefit of the doubt.
Alex Prieto: "If they're going to raise taxes, it might as well be on stuff that's bad for you. Bottled water is like the only thing in there that's any good. Buy one and fill it up at home."
Nikki Prieto: "I think it is better to tax stuff that you buy in a convenience store than to tax schools and stuff and be cutting their budgets because the most important thing is an education."
More common though were views like these from Ryan Evans and Saxon Rodgers.
Saxon Rodgers: "I hate to see the food tax come back at all. Period."
Ryan Evans: "I think it's outrageous. I think they need to do something else, cut back on their spending instead of taxing everything else. It's just getting way out of hand."
Higher taxes account for about a third of the proposed solution to Washington's $2.8 billion budget deficit.
The rest would be covered by program cuts and one-time federal money. A goodly chunk of the proposed tax hikes would be temporary.
The soda tax, beer tax, and a surcharge on service sector businesses would expire in the summer of 2013.
© 2010 Northwest News Network
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