Feb. 23, 2009

Why a state income tax and other new tax proposals are a bad idea
Rep. Barbara Bailey

What if someone said that you don’t pay enough in taxes and that, in addition to what the federal government takes from your paycheck, the state will also need a cut? Actually, this is exactly what state senators from Tacoma and Seattle are telling you through their proposals to establish a new state income tax as a way to address the state’s $8 billion budget shortfall.

Senate Bill 5104 and Senate Joint Resolution 8205 are reminders that – despite several failed attempts since 1929 – the idea of a state income tax continues to have support in Olympia. Conversely, I support the voters, courts, vetoes and legislative actions of the last 80 years, all of which have stopped attempts to establish a personal or corporate income tax.

Here’s the problem: Instead of admitting that past mistakes were made when state spending was increased by $8 billion over the last four years, some state lawmakers want you to provide them a bailout through higher taxes. A state income tax is but one of the many new tax proposals being thrown around in Olympia. And I predict that one, if not more, of these tax proposals will be on a ballot sometime this year.

In these tough economic times of higher unemployment, businesses closing and an uncertain investment market, if you are shocked that state government wants more of your money – well, you are not alone. This is why I continue to support a no-new-taxes approach to addressing our state budget shortfall.

There is no doubt our budget situation is serious, but we cannot be tricked into believing it is not manageable. Some state lawmakers want to portray the budget situation to be so dire that tax increases seem like a logical option. We cannot let this happen.

We can balance our budget without raising taxes – it’s just a matter of committing to a more prioritized, efficient state government. This means fully funding education, transportation, public safety and programs for our most vulnerable citizens, then determining what the state can afford beyond these core priorities. As assistant ranking Republican on House Ways and Means, the committee that helps determine the state’s spending and two-year budget, I can tell you that these decisions will be difficult – but vitally important to our future.

The bottom line is a state income tax – or any new tax increase – is a bad idea. When declining consumer spending is adversely affecting revenue, the last thing state government should be doing is taking more money out of the pockets of hard-working families. And when many employers are downsizing or closing, causing higher unemployment, the last thing state government should be doing is adding more tax burdens on the business community.

I just firmly believe that families and employers are not responsible for state government’s budget shortfall – nor should they be expected to provide a bailout. Instead, it is time for state government to prioritize and find efficiencies.

As I said in this newspaper just a few weeks ago, I’ve always been an optimist. I’ve seen the resilient people of this great state rise up to meet all of their challenges. We are facing several challenges together, and we will no doubt overcome them together. This is what makes our communities so special. Brighter days are ahead, and I feel our state can learn a lot of important lessons between now and then.

Rep. Barbara Bailey, R-Oak Harbor, represents to the 10th Legislative District and is assistant ranking Republican on the House Ways and Means Committee. She can be contacted at (360) 786-7914 or bailey.barbara@leg.wa.gov.

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