Five of the six initiatives on the fall ballot have direct consequences for business, and the sixth certainly will have an indirect influence.
Three of these measures tax specific segments of our state population (referred to as user taxes) rather than distributing the burden across the entire populace. We don't believe this selective taxation is wise or sustainable for the state, evidenced by the effort to repeal a portion of those imposed by the legislature in their last session.
Rather, we believe the legislature should look at revamping the entire tax code for the state. Now is exactly the time to look for a new approach to funding government before we simply reinstate the recent cuts once state revenues pick up. Let's look for a method that is both sustainable and equitable and that funds the resized government.
If nothing else, we have the opportunity with our votes to send a clear message to the legislature on what is good for business and what is not.
Initiative 1082 would allow businesses to purchase industrial insurance (workers' compensation) from private insurers rather than continuing with the state-run monopoly. Washington remains one of only four states in the country to continue a state-run program that doesn't allow for competitive products from private insurance companies. This state-run system has delivered price increases totaling 54% in the last decade with forecasts for a double-digit increase coming in 2011. It is time for a change and for the state to learn what it is like to compete for this business.
Under the false belief that "they can afford it," Initiative 1098 is one of those targeted tax measures we cannot support. It is bad policy on a number of levels. It establishes an income tax that future legislatures, only two years hence, can expand to include all wage earners and do so without a vote of the people; it removes one of the key advantages we have in recruiting companies to our state and region. We know about two firms whose plans to move to Clark County are currently on hold; both have said they will not move here if 1098 passes. In an economic climate that has devastated small business, to consider taxing those who are in a position to create new jobs as the state's economy recovers is a penalty business owners and entrepreneurs shouldn't be forced to suffer.
Initiatives 1100 and 1105 give voters the opportunity to refocus state government on what governments are intended to provide and gets it out of the wholesale, distribution and retail liquor business. The private sector is better organized to carry out these functions and should have the opportunity. While the two options have a couple of key differences, passage of either is more desirable than the current system, which hasn't changed materially since it was instituted in 1932.
Removing the taxes imposed on "nonessential items" like carbonated beverages, some candy as well as some food manufacturers is the intention of Initiative 1107. This initiative addresses yet another example of selective taxation. The consequence of these taxes on manufacturers and
bottlers could mean additional job losses we cannot afford. Vote yes on 1107.
Requiring the legislature to gain the support of two-thirds of their colleagues before raising taxes is not only responsible but it places a tax increase in its appropriate position on the list of options – at the bottom. If the support is not present among our elected representatives then it's not likely a good solution. We believe Initiative 1053 should pass.
