I695: A Lousy idea

greenspun.com : LUSENET : I-695 Thirty Dollar License Tab Initiative : One Thread

[reprinted from the Seattle Times, 8/19 edition]

Car-tab initiative: Lousy way to send a message

WASHINGTON's car-license fee is the tax of a dozen misunderstandings and misconceptions.

Car tabs, of course, lie at the core of Initiative 695, the measure to roll back fees to $30 and force a public vote on every tax and fee increase imposed by state and local government.

Nobody likes paying taxes, but a lot of people support the initiative due to misconceptions and bad information. Many motorists, for example, believe all proceeds from the motor vehicle excise tax should go to roads, bridges, ferries and other transportation-related needs.

That understandable sentiment doesn't mesh with history. The motor vehicle excise tax was enacted in 1937 to replace the personal property tax on cars. Initially, it was dedicated to common schools. Over time, more money was directed to transportation, but motor vehicle taxes still pay for police, fire, transit, air pollution control and health services.

Other misunderstandings about car tab fees and the initiative abound:

"I'm from Illinois, I'm from North Dakota." Newcomers might support I-695 because they want Washington to mimic car tab costs back home. Again there is an information gap. Most states with car tab fees in the $30-$50 range, with the exception of oil-rich Alaska, have an income tax. If I-695 passes, someone, some group will push to make up lost revenues with a state income tax.

"Rolling in money." Roll back the tax, supporters say, pay for government with the $1 billion surplus. Great campaign line, but it doesn't work. If I-695 passes, the state would lose $1.1 billion in revenue the first 18 months after passage and $1.7 billion the following biennium.

If lawmakers are foolish enough to dip into the surplus in a rosy economy, that surplus would be quickly erased.

"Mad as hell." Anger at government ebbs and flows at different moments in history. Many people will vote for I-695 to send a "message" to faceless bureaucrats in Olympia. In many cases, a harsher message will be sent to small rural local governments, which will have to cut police, fire and other services.

Motor vehicle taxes are also used to equalize sales-tax revenues for small rural towns and cities and locales with lower sales-tax collections. Bonney Lake in Pierce County, for example, will lose roughly $350,000 - 10 percent of the general fund - if the measure passes. Cuts will be made in law enforcement, road repair and planning services.

"Free vote costs nothing." Not true. Anyone who voted for Referendum 49 hoping to improve roads, bridges and ferries ought to know that I-695 effectively kills funding for those improvements and guarantees longer, more- frustrating traffic jams. It'll be years before another proposal is in effect.

[And finally,] The price of cabbage. If the price of cabbage on the open market goes up, look out. This ill-considered measure (I-695) would force a public vote on every tax and fee increase from admission at the county pool to the price of cole slaw at the school cafeteria.

"Not to worry," say supporters. "I-695 curbs politicians' power and gives the public more power." Actually, the proposal creates an enormous hassle for citizens, who will be forced to trek to polls at least five or six times a year. Worse, it enables politicians to wiggle out of their responsibility to make tough decisions. If the Legislature or town council faces a vote on tax or fee increases, politicians can call an election and let the public do the work for every measly decision.

Polls reveal considerable loathing of car-tab fees. But once people truly understand the ramifications of repealing the tax, they're less likely to let anger overwhelm common sense and good judgment.

-- shallora (shallora@stpubs.com), August 19, 1999

Answers

If it is so tough for the state to come up with 2% of the budget how did they come up with an 11% increase in the budget this year. If you would like to keep paying higher taxes, please tell the government that you will now be paying my share. Thank you.

-- Ed Bridges (edb@ci.richland.wa.us), August 19, 1999.

Ed-

What is the opinion in the Tri-Cities area on the percent of the MVET that goes to ferries? Do you have a lot of ferries over there?

-- Gary Henriksen (henrik@harbornet.com), August 19, 1999.


Gary: Most of the people on this side of the state have no idea of how much the transit system and ferry system are subsidized by the state. And that for all the money the state has spent on the ferrys they could have done a good job of fixing up the roads. As for the lack of ferrys over here, I've never seen one but I've only lived on this side of the state since '78 so I haven't had time to look every place. By the way, I've lived in this state since '68. I've rode the ferrys twice in 1987 (I think of '88 ) and that was to go fishing at Neah Bay (didn't catch anything to seasick). Uh, back to Patrick. One of his scare tactics is that the sheeple while have to go to the poles 5 to 6 times a year to vote on new taxes. Why? The state, countys and cities and just get together and combine their request to screw us. By the way how many times do you go to the polls now to vote on school levys.

-- Ed Bridges (edb@ci.richland.wa.us), August 19, 1999.

Ed, as Gary and most likely everyone else has been able to deduce, you are using a City of Richland e-mail address.

If you are indeed a city employee, you may wish to review the comments under the "Unlawful use of public funds" subject heading to review how this is not exactly a bright idea.

-- Patrick (patrick1142@yahoo.com), August 19, 1999.


HHHmmmm...

A Seattle Times editorial...

Gee, weren't they the outfit that tossed any pretense of objectiveness away when their owner wasted tens of thousands in their I-200 debacle? Yeah... they give hundreds of thousands of dollars worth of free advertising to the No! on 200 side, didn't they? Their editorial conduct during that complete misreading of the people was dispicable. It seems now that they'll go out of their way to exceed even that sorry journalistic episode.

Yeah... when it comes to initiatives... The Seattle Times is an IMPECCABLE source!

If a Times editorial told me the sun came up in the East, I'd consult 2 independent astronomers to verify it.

Westin

-- Westin (86se4sp@my-deja.com), August 20, 1999.



Without MVET they'll want an income tax? BRING IT ON, BABY.

Local governments will easily cope with I-695 stresses. Essential funding will have to be replaced by money from other parts of the State budget--less justifiable parts. When it passes, the heat will come down on State legislators real fast, and they will be forced to respond.

Forced to vote on every tax increase? I hope the NO buttons don't wear out.

The poor government. How will they cope?? Maybe they can take a lesson on budgeting from the single mom or fixed-income retiree who's been forced to pay these outrageous taxes. It feels like a punch in the stomach when something like that comes due all in one month.

Next in line, property and B&O taxes!

-- Greg Holmes (kholmes@ior.com), August 25, 1999.


The citizens of this state will step up to the plate and pass tax increases for programs they deem essential, but will force government to live within it's means to provide basic essential services. I-695 only imposes a 2% reduction in government spending. We all know that government would not hesitate to raise taxes by 2%, which would result in a 2% reduction in YOUR spending. What's good for the goose is good for the gander.

Larry Allen, Olympia, WA

-- Larry Allen (larryallen@home.com), August 29, 1999.


Moderation questions? read the FAQ