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March
6, 2009
Dear Friends and
Neighbors,
For the most part, legislators in Olympia
work across the political aisle, working honorably to
get what each believes to be the best possible policies
for the citizens in their districts and in the entire
state. Most of the time, once agreements are
reached, they are honored. On occasion, however, a
legislator - at the urging of an interest group - will
go back on the promises made.
We've seen several instances in the last
two weeks where bills that have been worked on and
agreed to by both parties get changed on the fly to the
exclusion of the minority party (us Republicans).
We're seeing floor speeches unfairly censored one
minute, and the next minute the majority party has free
reign to speak as they will.
In fact, here's a
direct quote from a floor speech from a member of the
majority party explaining why a bill was changed at the
last minute:
"In our democracy, the majority seems to
win and, uh, most of the stakeholders were
alright with this amendment."
"Most
of the stakeholders?" Why not
all
of the stakeholders? That's what the
stakeholder process is for -- to reach consensus
on issues like this.
I don't mention this
to you in order to complain. I know how this
place works and what makes it not work.
But I offer this behind the scenes peek at the
legislative process so that you know what we're
up against as we strive to make Washington a
better place to live, work and raise a family. |
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Reps. Jaime Herrera and Ed Orcutt
meet with a local Farmers
Insurance Group |
Thank you again for taking
the time to learn more about what's happening in
Olympia. And thank you for putting your trust in
me to represent you. If there is ever anything I
can do for you, or if you have any questions or concerns
about the issues we're facing in the Legislature, please
don't hesitate to contact me.
Sincerely,
Ed Orcutt
State Representative,
18th District
PS - On
Saturday, March 14, Sen. Joe Zarelli, Rep. Jaime Herrera
and I will be hosting a couple of town hall meetings
(see below for more information). Please feel free
to come to the one nearest you. Your continued
input is important to me as we work together to solve
the important issues facing Washington families.
When is a tax increase a tax increase?
Here's
a press release sent out by our House Republican Leader on a recent
procedural motion to determine whether or not eliminating tax incentives
qualifies as a "tax increase" under the two-thirds provisions found in
the recent voter-approved Initiative 960. In my mind, if an
employer has been exempt from a tax for 50 years, and now all of a
sudden they have to pay that tax, it's a tax increase!
House Democrats
refuse to say whether they will respect the will of the
people, I-960
House Republicans press for answers, taxpayer
protection
House
Republicans
are asking House Speaker Frank Chopp to rule on
whether the Washington State House of Representatives can repeal an
established tax exemption with a simple majority vote. They believe it
should take a two-thirds vote, as outlined by voter-approved
Initiative 960. Speaker Pro Tempore Jeff Morris
ducked the underlying question in the following exchange with
Republican House Floor Leader Doug Ericksen on the House
floor today:
Rep.
Ericksen: "Mr. Speaker,
I am considering having an amendment drafted to one of the bills on
today's second reading calendar -- House Bill 1504. But in order to
draft the amendment I need to find out if a bill, such as House Bill
1504, which removes a tax exemption, will be considered to have 'raised
taxes' as that term is defined in Initiative Measure 960. I would point
specifically, Mr. Speaker, to how the term 'raises taxes' is defined in
RCW
43.135.035 Section 6 as meaning any action or combination of actions
by the Legislature that increases state tax revenue deposited in any
fund, budget or account, regardless of whether revenues are deposited
into the general fund. As currently drafted, Mr. Speaker, does HB 1504
require a two-thirds vote of the full House to pass?"
Rep. Morris: "The Speaker would like to rule that because we do
not have a final question before the body, which would be on third
reading and final passage, the ruling would have to be speculative in
nature. The Speaker does not issue advisory opinions or speculative
opinions on bills before they reach a final question before the body.
Because your motion is not one that is timely with the final
consideration of the bill, it is out of order. Your point is not well
taken."
House
Republican Leader Richard DeBolt responded to today's
development with:
"Any action by the Legislature that would
require someone to pay more of their money to state government is a tax
increase and should require a two-thirds majority of the Legislature to
be passed into law. We think the voters were clear about that when they
approved Initiative 960. The citizens wanted protection from unnecessary
tax hikes being enacted at the whim of the majority party," said
DeBolt, R-Chehalis. "Its not entirely clear if the majority
intends to abide by the voter-approved safeguards against higher taxes.
Several Democrat tax increases are being proposed, and we Republicans
are standing firm in our commitment to balance the state budget without
placing any additional burdens on the citizens of our state."
Not only did voters approve I-960's two-thirds vote requirement
for tax increases, they also demanded it in 1993 via I-601.
However, the majority party, which falls short of a two-thirds majority,
has set aside the two-thirds vote requirement - and did it with just a
50 percent majority vote. But that's why I-960 was needed in the
first place!
In addition to trying to increase taxes by
eliminating a tax exemptions, they also have proposed legislation to
eliminate a tax, which they will then replace with a fee -- at a higher
rate! Cleary, these both are attempts to circumvent the will of
the voters. And, my greatest concern is that until the Legislature
settles the issue of whether or not (I choose "not") to raise taxes,
we'll never get around to balancing the budget, much less doing it
without tax increases.
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SAVE THE DATE!
18th
District Town Hall Meetings
Saturday, March 14
Woodland
Oak
Tree Restaurant
1020 Atlantic St
10:30 a.m. -11:30 a.m.
Battle Ground
City Hall Council Chambers
109 SW 1st
St
12:30 p.m. -1:30 p.m.
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Your 18th District Team!
Rep. Ed Orcutt, Rep. Jaime Herrera and
Sen. Joe Zarelli |
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Sen. Joe Zarelli,
Rep. Ed Orcutt, and
Rep. Jaime Herrera host you for two town
hall meetings.
We'll give you an update on
how the current Legislative Session is going,
and answer any questions you might have about
the actions of the Legislature.
We hope you can join us!
For more information contact:
Amber York at Rep. Orcutt's office
360.786.7812
Keith Bundy at Rep. Herrera's office
360.786.7850
Tina Bodine at Sen. Zarelli's office
360.786.7634
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Possible taxes on the table
Here are
some of the tax increases that majority budget
writers MAY be considering in their efforts to
fill the state's $8 billion budget deficit,
along with the dollar amount each tax increase
would take from taxpayers. As you read
this, keep in mind that in their budget meetings
with House Republicans (and there have only been
a few), majority budget writers have not listed
ONE state entitlement program to be cut. I
hate to say the writing is on the wall...but...
Retail Sales and Use Tax
- Raise state sales tax from 6.5 to 6.6 percent
($225 million)
- Raise state sales tax to 7
percent ($1.12 billion)
- Raise state sales
tax to 7.5 percent ($2.23 billion)
- Repeal
the sales tax exemption for all newspapers
($30.7 million)
- Repeal the sales tax
exemption for gasoline ($1.537 billion)
-
Repeal the sales tax break for manufacturing
($416 million)
- Repeal sales tax exemption
for vehicle trade-ins ($309 million)
-
Collect sales tax on over the counter drugs
($38.6 million)
- Extend sales tax to candy
and gum ($58.8 million)
- Repeal sales tax
exemption for custom software ($252 million)
New Taxes
- Soft
drinks: 5 cents per 12 oz. can at wholesale
($277 million)
- Bottled water: 1 cent per
ounce at wholesale ($366 million)
Real Estate Excise Tax
- Raise rate to 1.6 percent from 1.28 percent
($381.4 million)
Cigarette Tax
- Raise
by 25 cents per pack ($56.4 million)
Business & Occupation Tax (B&O) rate
increase
- 10 percent surtax
on all ($630.6 million)
- 25 percent surtax
on all ($1.577 billion)
I hate to sound
like a broken record, but I'm going to end here
with the same comment that was picked up by a
recent editorial in The Columbian (click
here for editorial):
State
Rep. Ed Orcutt, R-Kalama, recently made an
astute observation about a bill that would
increase the taxing authority of counties, but
his comment also applies brilliantly to the
broader concept of tax increases during an
economic crisis:"Are you considering at all that
revenues are down because consumer revenues are
down and consumers cannot afford to take any
more money out of their pockets?" No,
apparently some of those who have not ruled out
tax increases aren't considering that at all.
Apparently, some of those who have
not ruled out tax increases aren't considering
that at all. |
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