Press Release
Nation’s Oldest Taxpayer Group to Olympia: Avoid Tax Hikes, Kick the Overspending Habit! For Immediate Release November 29, 2011Brent Mead
(Alexandria, VA) – The ink had barely dried on
Washington State’s June budget before revenue projections came up short and now
taxpayers face close to a billion dollars in assorted tax increases – a debacle
elected officials could have avoided by keeping expenditures under control. That’s
the word from the National Taxpayers Union (NTU), a grassroots taxpayer group
with 362,000 members nationwide and nearly 11,000 members in the Evergreen
State.
“Unlike in years past,
Governor Gregoire appears to be paying at least some heed to the state’s
taxpayer protections by putting a proposed sales tax increase on the March 2012
ballot,” said Brent Mead, NTU’s State Government Affairs Manager. “However, she
could do much better justice to the cause of protecting taxpayers by tackling
Washington State’s overspending habit.”
The Legislature convenes
today for a 30-day special session to solve an estimated $1.4 billion
overspending problem in the budget. On the table is a massive $494 million hike
in the sales tax, which would put Washington in league with a handful of other
states whose rates (7 percent) are second-highest in the country behind only
California. When combined with local levies, Seattle residents would pay among
the highest combined rates in the country, even higher than San Francisco or
Los Angeles.
In addition to the sales tax
measure, Governor Gregoire wants to make the state more dependent on unreliable
and declining revenue sources. For example, the Governor is asking the
Legislature to pass a punitive and unnecessary $0.25 per pack cigarette tax
increase. Cigarette sales have declined almost 6 percent per year over the last
decade, and neighboring Oregon and Idaho feature much lower excise tax rates,
so serious questions remain about just how much revenue this levy could possibly
snag. Meanwhile, businesses and consumers in the state would be further damaged
by the more burdensome taxes, all because of Olympia’s inability to address its
spending problem.
“The Governor is ignoring a
$1.4 billion wake-up call. The state cannot afford its addiction to
irresponsible budgeting,” said Mead. “Hardworking families are being asked to
cough up potentially hundreds of dollars more to support this spending habit.
It is time taxpayers stage an intervention and say no.”
NTU is a nonpartisan, nonprofit
organization working for lower taxes, smaller government, and economic freedom
at all levels. More information is available at www.ntu.org.