Lawmakers in Olympia don’t seem to be listening to their constituents. On three separate occasions, Washingtonians approved ballot measures requiring a two-thirds majority in the Legislature or voter approval to raise taxes - first in 1993, then in 1998 and finally in 2007 with the passage of Initiative 960. However, lawmakers have suspended each requirement during the sunset period in order to “solve” budget shortfalls with tax hikes. Passage of Initiative-1053 on the statewide ballot would send a fourth – and, hopefully, the final – message to state lawmakers: stop raising taxes and rein in excessive government spending.
Successful passage of I-1053 will shift lawmakers’ attention away from ways to impose new taxes and toward fundamental budget reform and restructuring of state spending. Its failure will increase the likelihood of new taxes to “solve” budget shortfalls and continue the current trend of increasing government spending. History shows that without any restraint lawmakers will do just that. This February, after approving a 16 month suspension of I-960, the Legislature and Governor Gregoire passed a budget with new taxes to close a $2.5 billion budget shortfall. But eight months and $800 million in tax increases later, Washington is now staring at a $4.5 billion budget deficit.
Lack of revenue is not the issue in Washington. The Washington Policy Center cites that in the last ten years lawmakers increased total spending by 43 percent, while population grew just 11 percent, and inflation increased just 19 percent. Most of these spending increases occurred during the party years of the mid 2000s. Lawmakers made all kinds of new promises and now the bills are coming due.
Overall, Washington has fared well over the years. Boasting a supermajority requirement and no personal or corporate income taxes the state ranks 14th in the American Legislative Exchange Council’s (ALEC) state by state comparison of economic performance. It’s no coincidence that many of the other 15 states with similar attributes are ranked high as well. They include Arizona, Arkansas, Colorado, Florida, Nevada, Oklahoma, and South Dakota. These are states that have created business-friendly environments that foster investment and job growth.
Each are among the top 20 best economic performers according to ALEC’s report, which ranks states based on various policy variables including total tax burden, the number of public employees, and the number of tax and spending limits the state has on its books. In general, the report shows lower taxes, fewer government employees and limits on taxes and spending translate into more robust economic growth in the long term.
Strict limitations on tax increases make it harder for politicians to take the easy way out of budget crises by raising taxes. As history shows us, ever growing tax burdens simply stifle long term economic growth, employment and per capita income. Supermajority requirements encourage lawmakers to prioritize core government functions and cut waste rather than resort to harmful tax increases. I-1053 will do the same for Washington.