By Mike Baker
The Associated Press
OLYMPIA — Senate Democrats began exploring a proposal Wednesday that would make it easier for Washington state lawmakers to repeal tax exemptions.
A voter-approved initiative last year requires a two-thirds majority to increase taxes, essentially removing that option from the table at a time when lawmakers are looking to fill a projected shortfall of about $5 billion.
Looking for flexibility, a key committee heard arguments over a bill that would ask voters to give the Legislature the option of modifying tax breaks with a simple majority.
Democrats believe Initiative 1053 was not understood to apply to repealing tax exemptions, which can apply to everything from sales of semen for the artificial insemination of livestock to the sales of chicken bedding.
The Ways and Means Committee began considering bills that would eliminate those tax breaks and others, such as such as a deduction for farmers who purchase gas to heat chicken houses.
Tracey Eide, D-Federal Way, said the state is facing unprecedented times with massive budget cuts in education and other areas.
“Are we going to pick chickens over children?” she said.
“It’s time that we re-prioritize what we are doing with our state budget.”
Advocates for education, seniors and health programs lined up to support the bill, arguing that their key support services were being slashed while a variety of random tax breaks were allowed to stand.
Senate Majority Leader Lisa Brown, D-Spokane, said she doesn’t expect the proposals to have the votes to pass this year but that it’s critical for people to understand the trade-offs required to keep the tax breaks.
“This is the kind of conversation you have to have,” Brown said.
The bill to repeal a few agriculture tax exemptions would raise about $6.7 million in the next budget cycle.
Another bill that would limit business tax deductions would bring in more than $300 million over the next two years.
Agriculture industry, business groups and some citizens came out in opposition, while initiative promoter Tim Eyman said voters have repeatedly shown that they don’t want any new taxes.
“If you ignore the people and pass this, voters will react with dismay and disgust,” Eyman told lawmakers.
The passage of I-1053 in November was the third time in recent years that voters have told the Legislature they want it to be harder to raise taxes: Before 1053, they passed Initiative 601 in 1993 and Initiative 960 in 2007. Both require the same two-thirds majority vote to change or raise taxes.
The Senate committee did not take a vote on the tax bills Wednesday.