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April 17, 2009 12:02 PM

Pettigrew: Sales tax proposal not a "bait and switch"

Posted by Andrew Garber

Rep. Eric Pettigrew, D-Seattle, took issue with allegations made during a public hearing today that lawmakers are proposing deep cuts in health-care services as a way to get voters to approve a tax increase.

Pettigrew is the prime sponsor of House Bill 2377, which would ask voters to increase the sales tax by three-tenths of a penny for three years to raise money to help buy back proposed cuts in state health-care programs.

"We have gone through an in-depth process of looking at state government ... the bottom line is even with that, it's still not enough. We still have to come to these tough decisions," Pettigrew said.

The Legislature expects to cut nearly $4 billion from the state budget. Tax revenues have plummeted because of the recession.

During a public hearing this morning, anti-tax activist Tim Eyman accused lawmakers of
"the oldest trick in the book - fund non-essential programs with existing taxes, then hold essential programs hostage, demanding a voter-approved ransom to get them back."

"Dante's Inferno describes the seven circles of hell. There needs to be an 8th circle added and reserved for politicians who are willing to throw the elderly and the disabled under the bus, defund their programs, and then exploit them, using them as props and pawns in their never-ending pursuit of higher taxes," he said.

But there also are many supporters of the tax proposal. Alice Woldt, with the Washington Association of Churches, called it an "answer to a prayer."

"This revenue package is a step in a direction of at least helping people to survive," Woldt testified.

Pettigrew, chairman of the House Health and Human Services Appropriations Committee, said he hopes to pass the tax bill out of his committee tonight. He wasn't sure if there were enough votes to pass the bill in the House, or when it might be voted on.

The proposal would raise about $486 million over the next two years. Of that, about $105 million would be used to fund a so-called working-family tax credit to help offset the higher sales taxes paid by the working poor. The bill says 21.6 percent of the tax revenue would go to fund the tax credit.

The remainder of the money would help pay for several health cares services, including long-term care, nursing homes and the Basic Health Plan, which provides subsidized insurance for low-income workers.

Other ballot measures being debated in the Legislature include an income tax of 1 to 3 percent that would hit people earning more than $250,000.

A recent survey by Seattle pollster Stuart Elway found that 53 percent of voters questioned were "inclined to favor" an income tax on individuals making $250,000 or households earning $500,000.

The poll also found that 51 percent of voters questions favored small increase in the sales tax increase to help fund the Basic Health Plan.

Writing about the poll results, Elway said, "Although Washington voters are open to the discussion of tax increases to help close the $9 billion state government budget gap, they remain to be convinced. It will not be an easy sell, but most will not slam the door in your face if you bring up the subject."

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Comments (8)
We the voters are NOT buying what you are selling today - OR - anyday... Cut the budgets or go home! The 40% budget increases in the past 4...  Posted on April 17, 2009 at 12:47 PM by Near or Far. Jump to comment
Here's a little story about Washington ranking #3 on sin taxes. http://www.realclearpolitics.com/lists/highest_vice_taxes/washington.html -...  Posted on April 17, 2009 at 2:52 PM by PNB. Jump to comment
Right on Tim! They can deny all they want, but they continue to play the oldest game in the book. We know better and will not play along.  Posted on April 17, 2009 at 3:01 PM by I'm Fed Up!. Jump to comment

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Andrew Garber
Covers politics and state government from Olympia.

Jennifer Sullivan
Covers the state Legislature from Olympia.

Chantal Anderson
Covers the state Legislature from Olympia.

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