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03/02/2010

Public Prefers Spending Cuts to Tax Increases

That's not exactly the way the Seattle Times headline reads - the Times says the public is "divided" - but I think it captures the essence. Of course the public is divided, it always is, always will be. But consider this from Jim Brunner's story covering a new report from Seattle pollster Stuart Elway.

The largest bloc, 4 in 10 of those polled, said the Legislature should rely entirely on cuts in spending -- essentially the Republican legislative position.

That cuts-only constituency is "significantly higher" than the typical anti-tax population in the state, according to Elway. Past polls have found the firm anti-tax vote to be about 24-30 percent of the electorate.

Elway says there's no majority for anything. And the article reports that most Washingtonians expect a tax hike. That, of course, could be due to the fact that all three budgets proposed so far rely on substantial new taxes - on business, consumers, smokers, soda pop drinkers, and ... well, just about everybody. So naturally people expect tax hikes.

Depending on how you slice the data, the poll found a 56 percent majority who think some tax increases will be required to close the budget gap, and a 63 percent majority in favor of deep cuts in state spending.

As I read that ... and I've not seen the raw data ... there's a clear plurality within the divided electorate. And that plurality would like lawmakers to avoid, at least minimize, new taxes.

Austin Jenkins reports on his Washington Ledge blog the reasons for Sen. Rodney Tom's 'no' vote on the Senate Budget. As Ways and Means Vice Chair, Tom is a key legislative fiscal player.

Basically Tom is worried that Senate Democrats are committing to a level of spending that exceeds what the Senate's tax package can cover. In other words, Tom says, the "balance sheet" is out of whack.

That's more than a legitimate concern ... it's a certainty.

The Everett Herald editorial this morning provides further perspective. The Herald opposes a sales tax hike and prefers the House finance package. Folks, including many within the WashACE coalition disagree on whether or which taxes to raise, and I'll not take sides here. But this comment from the Herald is indisputable.

No tax-hike plan is a good long-term solution, though. Economists agree that revenues likely will remain flat, or nearly so, for the foreseeable future. State government must readjust its priorities. How will be the top issue of the 2010 campaign.

Right.

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