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Monday, March 1, 2010

Money / Olympia House Budget Plan: Now With Details

Posted by Eli Sanders on Mon, Mar 1, 2010 at 12:39 PM

Click for taxes!

Last week the Washington State House of Representatives rolled out a budget plan with few details. Today the details arrived, in the form of a five-part proposal to actually bring in the house's desired $857 million in new revenue (which it wants in order to help close the state's $2.8 billion budget gap).

The big news is that the house does not go along with the senate in proposing a sales tax increase. Instead, it sides more with Gov. Christine Gregoire, offering a menu of sin taxes and loophole closures in order to bring in more money.

Here's the menu—prix fixe as they say:

Part One is an amended version of [Rep. Ross] Hunter’s House Bill 3176 which closes about $385 million in tax loopholes and tax avoidance schemes. The funds will be used to maintain lower class-size in grades K-4, provide levy equalization around the state, and maintain financial aid for college students.

Part Two increases the cigarette tax by $1 per pack of cigarettes and equalizes the tax on other tobacco products. The $111 million raised will help maintain the Basic Health Plan, Apple Health for Kids, and tobacco prevention programs.

Part Three ends the sales tax exemption for products and services such as elective cosmetic surgery, candy and gum, custom software, janitorial services and bottled water. It generates about $163 million for public health, children’s dental care, children’s health, and services for the disabled.

Part Four increases B&O rates by 0.5 percent for certain professional service providers such as lawyers and accountants. It also removes a B&O tax exemption on investment earnings beyond $250,000 for non-financial firms. It raises about $99 million for financial aid, levy equalization, and natural resources.

Part Five includes other anticipated operating budget actions and raises $100 million for natural resources and public education.

That last one sounds kind of mysterious, doesn't it? I've asked the budget proposers for an explanation of "other anticipated operating budget actions" and will update when I hear.

And the answer! Nothing sinister, and all explained right here.

Comments (6) RSS

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Flaunting French doesn't work when you're making mistakes in the French phrases you are using. Here, a prix fixe refers to a restaurant's offering a meal of several courses, sometimes with choices permitted, at a fixed price. Kind of like the $15 deal at Eastlake bar and grill?

It's a bad analogy to budget choices, where the price does in fact relate to what components are added, substracted or substituted. There is in fact no prixe fix, actually.

The cliche of calling a set of choices a "menu" ....one of those little wordplays that really goes nowhere....was bad enough.

Just a...."tip."

Posted by "Vachement dit." "Non." on March 1, 2010 at 12:55 PM

Ah, une autre chose....Ou est le proofreader?

Posted by La meme on March 1, 2010 at 12:57 PM

Great. Once again, cigarettes are the go-to sin tax whenever there's a budget problem... I wonder what their plan is once they've priced out all the smokers they've been bleeding for cash?

(Full disclosure: I'm an ex-smoker but it still bugs me that the government takes advantage of addiction to close budget gaps.)

Posted by UNPAID COMMENTER on March 1, 2010 at 1:24 PM

Looks like a sensible, moderate,centrist approach, especially the part of taxes things I don't use to pay for programs I have no need for.

Posted by Centrists Rule the World today on March 1, 2010 at 1:39 PM