Holmquist Newbry decries tax proposal

OLYMPIA - Gov. Jay Inslee's proposed $1.2 billion in new taxes in the next two years has Sen. Janéa Holmquist Newbry asking what happened to his promise to avoid tax increases.

"This is about a promise to working families and our unemployed friends, family and neighbors," said Holmquist Newbry, R-Moses Lake. "How are we going to promote private-sector job growth when the state budget calls for additional taxes on businesses, computer software, bottled water, phone service and new taxes on automobile purchases?"

Inslee's budget includes making temporary taxes set to expire on service-industry businesses permanent, adding $534 million in revenue for the 2013-15 budget. A business and occupation tax would also increase for most state businesses as well as $800 million in increased salary and benefits for state government employees while increasing state college tuition by as much as five percent.

"We, the Majority Coalition Caucus, outline a plan that reduces tuition by three percent across the board, and he intends to increase rates for students enrolled in our two biggest schools (Washington State University and University of Washington) by five percent each year?"

Inslee said closing tax breaks and tapping existing revenue sources provide a funding foundation for education.

"Our number one priority is revitalizing Washington's economy and building a 21st century workforce," Inslee said. "To do that, we must start with a strong commitment to education, and we must ensure that our investments get results."

Inslee's budget calls for $1.2 billion in new targeted education investments tied to what he called strong accountability measures, moving the state forward in meeting the Supreme Court-mandated basic education obligations.

"Today, I choose education over tax breaks," Inslee said of his proposal. "I choose fulfilling our constitutional and moral duty to ensure quality schools for our children. When we give these tax breaks a hard look, they just don't measure up to our urgent need to better fund education."

His budget also addresses a projected budget shortfall totaling more than $2 billion over the next two years.

"Did you know we have $2 billion more to spend in the 2013-15 biennium than during the prior two-year budget cycle?" asked Holmquist Newbry. "On top of the $2 billion more available to spend, it's unbelievable that Gov. Inslee felt the need to propose $1.2 billion in new taxes."