Hello, I have a question I have been wanting an answer to. I am sure if I took the time to browse through all the information here, I could find it, but I would appreciate an answer from someone anyway...

I have heard a figure of 2.8% in regard to overall decrease in tax revenues for the state as a result of I-695... Is this an accurate figure?

If you could provide me with a reliable source for the actual figures, I would be most grateful.

Thanks!

Gavin Dickinson

-- Gavin Dickinson (gdickinson1@uswest.net), January 31, 2000

Answers

As far as tax revenue, the MVET was scheduled to account for around 6.5% of the total tax revenue for the state. Taking into account federal grants, licensing and other fees for service of non- discretionary funding, and it is reduced to about 5%.

You can look up quite a bit of budgetary info here http:// www.leg.wa.gov/senate/scs/swm/other/2000cgsb.pdf Be warned, the file is over 2000k in size.

-- Patrick (patrick1142@yahoo.com), February 01, 2000.

You have to take all numbers with a grain of salt. The elimination of the onerous license tab fees will increase the amount of individuals' discretionary spending by a significant percentage. This means governmental agencies will collect more in sales taxes.

It also means the private sector will grow at faster rate relative to governmental sector. This means the dying embers of freedom may spark yet again. What price do you put on freedom?

Finally, the reduction of the license tab fees means the federal government may collect more (less itemized deductions) in taxes from the state of Washington. This provides fuel for the congress to lower someone's taxes, thus spurring the cause of individuality and freedom, even more.

In short, with a strong economy and a huge state surplus, there is every reason to be optimistic about the consequences of I-695.

-- Matthew M. Warren (mattinsky@msn.com), February 01, 2000.

I haven't seen any indication of increased sales. In fact, in the most affected area, car and RV sales, I've heard rumors that they are STILL seeing slumping sales. I even saw an ad the other day about how an RV dealer is donating the amount people would have paid in MVET fees to charities in an attempt to entice people back.

As for the suggestion that since we're now paying MORE taxes to D.C. that should entice Congress to reduce their taxes more, that does seem to fly smack in the face of the theory that government won't reduce taxes unless forced to. Perhaps if we all paid DOUBLE what we owe in income taxes they'll reduce our taxes by triple!

-- Patrick (patrick1142@yahoo.com), February 01, 2000.

>>The elimination of the onerous license tab fees will increase the amount of individuals' discretionary spending by a significant percentage. This means governmental agencies will collect more in sales taxes.

It also means the private sector will grow at faster rate relative to governmental sector. This means the dying embers of freedom may spark yet again. What price do you put on freedom?

Finally, the reduction of the license tab fees means the federal government may collect more (less itemized deductions) in taxes from the state of Washington. This provides fuel for the congress to lower someone's taxes, thus spurring the cause of individuality and freedom, even more.

In short, with a strong economy and a huge state surplus, there is every reason to be optimistic about the consequences of I-695.<<

Tim Eyman said basically the same thing during the campaign for 695. Of course he couldn't find a single economist to back him up, but I guess you can believe whatever you want to believe. As Lennon said, "Whatever Gets You Through the Night."

-- BB (bbquax@hotmail.com), February 01, 2000.

to Patrick and BB: The point is we have a state surplus and a strong economy. The federal government has visions of sugar plums with its projected surplus. If NOW was not a good time to cut taxes, then WHEN?

The impact of I-695 appears to fall squarely on the shoulders of transit. What's wrong with eliminating low-ridership bus routes? What's wrong with eliminating weekend bus service? What's wrong with asking ferry riders to pay more? What's wrong with getting the DOT out of the ferry business, and creating local ferry districts?

If road construction projects are impacted, what's wrong with deferring the new Tacoma Narrows Bridge project by a few years???

Let's face it. I-695 is harmless, unless you're a bus driver or a user of passenger-only ferries. With the strong economy, the bus driver can get another job. So, the only person really getting screwed is the user of passenger-only ferries.

The solution is to have a state-wide vote to bring back a portion of the MVET in order to continue subsidizing passenger-only ferries. I'm sure most rational people would agree with you and vote for it.

-- Matthew M. Warren (mattinsky@msn.com), February 02, 2000.

"So, the only person really getting screwed is the user of passenger- only ferries. " If you define "getting screwed" as no longer being able to get services provided to you cheaply by taxing others for your subsidy.

-- (craigcar@crosswinds.net), February 02, 2000.