Democrats Prepare to Further Destroy Washington State’s Economy

by lewwaters

Governor Gregoire of Washington State has called the state legislature into Special Session, beginning Monday, November 28, 2011 to deal with the states ongoing budget gap and promoting her call for a “temporary” sales tax increase statewide. If you believe any sales tax increase will be temporary, I’d like to sell you a nice bridge I just happen have.

I covered the reason the “deep, obscene” cuts in the budget had no effect in the post Sorry People, But You Have No “Right” To Other People’s Money! where it was brought out how unions and special interest groups file lawsuits against those budget cuts, often being overturned by activist judges.

As House Ways and Means Chairman Ross Hunter, Democrat from Medina put it, “What we’re doing in the budget now is like full employment for lawyers,” addressing the numbers of lawsuits to counter any effort to reduce spending in the state.

Gregoire now says, “It’s a new day for me. I have seen the ramifications of the cuts. I can’t live with it” in an article from the Columbian Saturday. Maybe she will tell us which cuts actually stood and didn’t get overturned by activist judges.

So, the main thrust in our still Democrat controlled legislature is raising taxes, even though some appear hesitant at this time. Rep. Jim ‘Da Taxman’ Moeller, D-Vancouver, seems to still be chomping at the bit to “plug tax loopholes for the wealthy.”

We are now told of proposals made by The Economic Opportunity Institute that claims to be “an independent, nonpartisan, non-profit public policy center working to restore the promise of the middle class.”

Looking over their Board of Directors & Members list reveals they are anything but “non-partisan.”

The President of this group is Dawn Trudeau, Co-owner of the Seattle Storm and who according to CampaignMoney.com contributes 100% to Democratic Party candidates and matters.

The list of “members” lists Hans Dunshee Democrat State Representative, Snohomish, Washington; Karen Keiser, Democrat State Senator, Des Moines, Washington; Tina Orwall, Democrat Representative, 33rd District, Des Moines, Washington and Eric Pettigrew, Democrat Representative, 37th District, Seattle, Washington. Not one Republican legislator listed.

Add to that, also on their list of “members” is Larry Brown, Legislative and Political Action Director, IAM Local 751; Lynne Dodson, Secretary-Treasurer, Washington State Labor Council; Mike Ragan, Vice President, Washington Education Association (WEA); Kristin Rowe-Finkbeiner, Co-founder and Executive Director, MomsRising.org (a spin-off of far leftist Moveon.org); Stan Sorscher, Labor Representative, SPEEA (Society of Professional Engineering Employees in Aerospace); Misha Werschkul, Senior Manager for State Legislative and Government Affairs, SEIU Healthcare 775NW and Diane Zahn, Treasurer, UFCW Local 21 for union and some special interest representation.

Obviously, “non-partisan” is but a joke up there.

Marilyn Watkins, policy director of the institute claiming she focused on “changes” that would have voter support and could be implemented right away said,

“We need the money now. We have been cutting back on health programs and home care and services for vulnerable seniors and children. We are putting individuals’ lives at risk and affecting people’s ability to live independently and in basic dignity…”

Their ideas they believe will win wide voter support are: “a repeal of the business and occupation tax deduction that banks enjoy on their profits on home mortgages (worth $120 million); an increase in the manufacturing and wholesaling tax rate paid by oil refineries (worth $250 million); a repeal of the B & O tax exemption for farms with gross incomes above $200,000 (worth $32.7 million), and $249 million in saving from a modernization of the tax code affecting interstate commerce” as well as “a 10 percent luxury tax on motor vehicles, vessels and aircraft valued at more than $50,000 (worth $70 million); a 50 percent increase in the estate tax (worth $45 million); and a repeal of the sales tax exemption for nonresidents (worth $25 million),” a measure Washington State business have long and consistently opposed.

Of note is the “10% Luxury Tax” that I emphasized. I did so because any who were working and earning wages back in 1990 should recall when Democrats talked Bush 41 into breaking his famous promise “read my lips, no new taxes” and tried that very tax nationwide. Almost immediately, it was a disaster for America’s middle class.

A May 11, 1991 New York Times article tells us,

“The tax — 10 percent of a car’s purchase price above $30,000 — was viewed as a way to get more money from the rich, Mr. Huizenga said. Instead, he said, it has combined with the recession to cut luxury car sales 45 percent in the first quarter.
The dealership closings that resulted have put 3,700 dealers, mechanics and others out of work, he said, and many more people will lose their jobs unless the tax is rescinded.”

An April 14, 1991 New York Times article informs us,

“Buffeted by the recession and now the 10 percent Federal luxury tax on the anything over a $100,000 price tag on a new boat, yacht sales nationally have fallen steeply in the last year.”
“Yacht dealers and boating association officials say the imposition of the luxury tax on Jan. 1 has caused further devastation in what was already a recession-ravaged industry. Some extra sales were made in December to people who wanted to beat the tax, but sales so far this year appear to be behind even last year’s dismal pace.”
“The tax adds $10,000 to the cost of a $200,000 yacht, for example, and that’s on top of any state and local sales taxes. In states with high sales taxes, like Connecticut (8 percent), dealers say the extra cost makes even their wealthier customers flinch.”

Instead of the Billions of dollars in extra revenue Democrats thought they would receive when they dreamed this fiasco up on paper, they put thousands of middle class workers out of work, costing the treasury more in unemployment benefits than was brought in by the few sales made in the short run of the tax before it was repealed.

I have to wonder about this “non-partisan” institute that lays claim to being in support of “restoring the promise of the middle class” and in all of their research, failed to notice how such a change as they now advocate decimated the middle class in the early 1990’s.

If this is the group influencing Democrats in Olympia, little wonder the state is in such dire economic troubles.

As Albert Einstein is so famously credited with saying, “the definition of insanity is doing the same thing over and over, expecting a different result.”

Maybe they should do actual research instead of just perusing leftist propaganda.

As I have said many times now, we’ll never pull ourselves out of this mess until people learn that they have no rights to other people’s money.

5 Comments to “Democrats Prepare to Further Destroy Washington State’s Economy”

  1. We’ll never pull ourselves out of this mess until people either learn to stop voting Democrat or until half the population gets killed in a hail of bullets from the Revolution that’s coming.

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  2. Jack: or until half the population gets killed in a hail of bullets from the Revolution that’s coming.
    JK: Do an economic analysis of the financial cost of funding a revolution compared to the cost of buying an election. You will find that buying election is far cheaper.

    That is just another reflection of the wisdom of our founding fathers when they set up our system of governance.

    Thanks
    JK

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  3. And think about this … at the same time the Governor is advocating draconian cuts in education she and the superintendent of public instruction are still pushing the common core standards, which the Washington Policy Center estimates will cost local school districts $300 million to implement. This de-facto tax on school districts forces us to give up our superior Washington math standards after we just spent a $100 million putting them in place, while at the same time surrendering the authority to control what our kids learn to unelected bureaucrats in Washington DC….And they want more money? This state government is incompetent and does not deserve one more dime of tax payer money.

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  4. I just ran my home address through the County Assessor’s property information center, and I came up with the following off of the distribution of my current property taxes on my home. These are increasing for the next tax year, but this is what we actually paid for the most recent.

    SD114 EVERGREEN DEBT SVC 1.5150197088 $369.59
    SD114 EVERGREEN M&O 3.1528624889 $769.14
    STATE SCHOOLS 2.0247768481 $493.94

    That means we paid Evergreen Schools $1138.73 in our “local share” of direct school taxes, and the State of Washington $493.94 for the “State share” of school taxes.

    Someone explain to me why the Sales tax needs to be raised if homeowners are already paying the “State share”.

    Evergreen Schools instituted all day Kindergarten a year or so ago, with absolutely no permission to do so from the voters, and that action alone required something like 45 new teachers.

    Evergreen Schools put their “science high school” before the voters in May of 2009 in Proposition 1, which was soundly defeated by the voters in the high fiftieth percentile. Within six months of the voters saying “NO”, Evergreen submitted that very same high school to “The Feds” for “stimulus” funding. It was approved, and construction of that science high school is underway right now, and has already been named, again without consulting anyone.

    Before that school can open, Evergreen will have to put up a new bond issue to outfit, staff, and operate that school, even though voters already turned it down. Voters were against all of the money the whole project would cost, but that didn’t stop Evergreen Schools.

    Voting to raise the sales tax is one thing, actually paying it and collecting the money you claimed it would is quite another matter. The City of Vancouver and Clark County have been bleeding money into the Oregon economy for decades, and even if King County does vote to approve another sales tax increase, no matter how temporary it supposedly would be, it will just give people in Southwest Washington even more reason to shop across the river and starve local government of money they are too irresponsible to be in charge of anyway.

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  5. My, my, my. It seems that there were hundreds protesting the Legislature’s special session.

    http://www.oregonlive.com/pacific-northwest-news/index.ssf/2011/11/protesters_interrupt_washingto.html

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