Speakers take on liquor, taxes and super majority vote

With a multi-billion dollar deficit looming in Washington, voters will have the chance to consider state spending in multiple initiatives on this year's general election.

During a second of two forums hosted by the Pullman Chamber of Commerce and the Pullman League of Women Voters, debaters hashed out some of the issues surrounding the multitude of initiatives, bills and referendums on the Nov. 2 ballot.

Initiative 1100

One of two initiatives that would privatize the sale of liquor in the state, initiative 1100 would close down state liquor stores and hand over the business to the public.

This could cut down the 51.9 percent markup on each liter of alcohol sold and hand jobs, now part of the state's budget, to the public, Tom Forbes argued. The termination of state stores could encourage the growth of jobs in the liquor industry in the state, putting Washingtonians to work.

Forbes compared the state's booze industry to the strong-arm tactics of notorious 1920s gangster Al Capone. The state's oversight of liquor sales is the state's attempt to oversee its citizen's morals, a job that should not be overseen by the state, Forbes said.

"Government does not need to sell products that the private sector can sell more efficiently," he said.

Patricia Maarhuis said the initiative would not create more jobs, and would likely cut the wages and benefits of the current employees who sell liquor. Privatization would threaten the poor, the young and the addicted who would see an increased access to alcohol if the sale of liquor is passed on to the private sector.

The initiative would also drain much-needed money from state coffers. Liquor sales generate $350 million annually.

Initiative 1105

The second liquor privatization initiative facing voters this election, I-1105, differentiates itself by mandating the Liquor Control Board come up with new fees or taxes that would make up for any lost revenue once the state hands over the sale of liquor.

The initiative also requires the Liquor Control Board find a way to generate at least $100 million in additional revenue.

This bill would not only create more revenue for local firefighters and police by generating $100 million more than current liquor sales, but also would give the Liquor Control Board time to enforce drinking laws, Dennis McConnell said.

Don Orlich, like Maarhuis, argued the initiative would only harm communities by increasing the availability of liquor.

Initiative 1053

Once again, Washington voters are faced with the option of requiring legislators to reach a two-thirds majority in order to raise taxes. Initiative proponent Chud Wendle pointed out voters previously approved this measure, but it was rejected in Olympia.

The initiative also would require voter approval for new taxes or increased fees.

Wendle pointed out that the initiative would force legislators to practice what they preach and cut their spending. In the past 10 years the state increased spending by 43 percent while the population increased by about 11 percent.

"The budget should match revenue and we cannot continue to try and match revenue to budget," he said.

I-1053 opponent Nick Loverich said the bill wouldn't protect citizens from their government but endanger the state. A super-majority state, like California, can be paralyzed by the requirement to reach a two-thirds vote.

A two-thirds majority, or super majority state, also would be needed to make cuts to basic public programs, such as schooling, the Basic Health Plan and nursing home funding.

Initiative 1082

Labor and Industries taxes in Washington are dragging down the economy by overburdening businesses and employees who could otherwise revitalize the state, initiative proponent Curt Fackler said.

Initiative 1082 would allow industries to purchase private industrial insurance and end the state's monopoly, opening the market to insurance options that better serve employees, Fackler said.

While the initiative would take down the state's monopoly on L&I insurance, it would only benefit the insurance companies, opponent Scott Brines said.

Like the increases in health insurance, Washington workers would see sweeping increases in the fees they now pay should this initiative pass, Brines said.

Initiative 1098

This initiative would shift some of the taxing responsibilities of the lower and middle class to wealthier citizens of Washington. In order to "level the playing field," this initiative would reduce property tax for businesses and homeowners, eliminate business and occupation tax for small businesses while initiating an income tax for individuals whose adjusted gross income is $200,000 annually.

This tax could bolster the shrinking education abilities in the state by dedicating $1 billion annually to funding k-12, college tuition, the Basic Health Plan and long-term care for seniors, argued Greg Hooks.

Jim Devleming asserted the initiative may look like an inch, but would welcome the state to take a mile.

Once in place, this income tax would soon be spread to all Washingtonians, Devleming said.

Sarah Mason can be reached at (208) 882-5561, ext. 234, or by e-mail to smason@dnews.com.