Condotta

The first post I wrote when the blog went live in May was headlined, "Dems and business talk income tax." It was about comments
Gary Chandler of the Association of Washington Business made in a speech about working with Democrats on an income tax plan.

The key Democrat said to have been in on the talks, Rep. Jim McIntire, pooh-poohed the idea that anything substantive was happening. He brushed it off by saying he talks with AWB every week and "it's not unusual to have these kinds of discussions."

But now from the Grand Coulee area's newspaper, the Star, we learn there are very serious-sounding talks about an income tax. And they've been going on for four months.

State Rep. Cary Condotta Thursday mentioned details previously not public about a "radical" new tax plan being designed for the state that would eliminate property taxes.

The 12th Legislative District Republican said he and the majority chair of the House of Representatives Finance Committee, Rep. Jim McIntire of Seattle, a Democrat, are working with the governor's staff on new possible models for a dramatically different tax system for the state of Washington. All of them would at least lower property tax and introduce an income tax.

Condotta said the model at the top of the pile as of Thursday would completely eliminate property taxes and create "direct funding" for schools, a fact previously undisclosed.

Condotta is a conservative Republican from Wenatchee. Star reporter Scott Hunter quotes Condotta as saying the state's current tax system allows "some of the high-end group (to) get away with murder."

He said big companies like Boeing and Microsoft would stand to be hurt the most by any of the changes being considered, but the overall restructuring would benefit the whole state.

Condotta said that he and McIntire have submitted four models to Gov. Christine Gregoire's staff. The plan "most favored at the moment" would amend the state constitution to eliminate property taxes and replace it with a simple income tax that "could be filed on a postcard."

The Star requires a subscription to see the full story. But get a one-day subscription and read the full story. (And a hat tip to Stefan.)

UPDATE: I just talked to Condotta. He had KIRO radio on the other line and may be on Dori Monson's show this afternoon. He said he's feeling a little heat from something that he thinks has been blown out of proportion.

"You got a hold of a story about a little test marketing I was doing in small town. Eight people were in that room. And I didn't think any of them were reporters."

While Condotta has some complaints about the story, he said he would have talked about the tax discussions even if he knew a reporter was listening. One correction, he said that he had mentioned that legislative staff, not the governor's office, was reviewing some of the models and he and McIntire had come up with.

"I'm kind of excited this is coming out because the discussion needs to start. People have to understand there are options. Maybe when it's all said and done we already have the best system. But I don't know that.

"The minute you mention income tax it's just, 'Kill the guy.' That's ridiculous. If you at tax structures around the world some of the most successful are based on income taxes."

Condotta said people should not worry that some new system will be rushed through. Any change would take an amendment to the state Constitution and that can't happen without a vote of the people.

UPDATE: Marty Brown, the governor's chief lobbyist, said McIntire had one meeting with the governor in early summer where the legislator said what he was working on. But that's been the only involvement from the Administration.