We as Democrats are working hard during these budget negotiations to provide dependable funding for the basic needs of the state for today and the future. Gimmicks, smoke and mirrors do not serve the long term needs of the people of our state.
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No one likes to pay taxes. As a legislator, if I could promise something for nothing and fund all the things we need as a state without new taxes, I would. But the reality is we need to rethink our revenue structure in Washington to get back on track.
Most legislators agree we need to increase funding for schools, as the court ordered, we need to fix our broken mental health system, as is morally right, and we need to maintain critical services for the less fortunate. The question is how do we pay for what we need with a dependable revenue structure?
Senate Republicans point to $3 billion in new revenue as evidence that we should “live within our means,” which sounds nice until you start adding up all of the costs from the Great Recession. Our citizens and state employees made huge sacrifices and took cuts in pay and services to help us survive.
Think of our Department of Corrections officers, who work challenging jobs keeping us safe and need investments in staff security and recidivism reduction programs.
Think of the mental health system that lost $90 million, on top of a serious shortage of treatment professionals.
Think of our State Park system that is struggling to maintain these wonderful public assets after receiving a $90 million budget cut.
It’s time we start reinvesting in these state programs.
There are other costs too. Our state is aging and our disabled population is growing, people are living longer. As co-chair of a select committee on aging and disability issues, I know we can’t meet the service needs of this age wave without new revenue.
Washington has one of the best long-term care systems in the country that allows people to stay in their homes and communities. The key to this system is the long-term care professional. We must honor their contracts and pension options to maintain our standards of care. Unless there is a living wage for the people that provide the bathing, cleaning, and cooking for the elderly and disabled, the system will falter and the patients will suffer.
I am also a member of the state task force addressing the Alzheimer’s/Dementia challenge. This is a disease that affects close to 100,000 patients, and will increase by 181% over the next 30 years. Alzheimer’s has no cure and requires extensive, long-term care. That means more costs over time for which we have to be ready, particularly providing support for family caregivers.
Washington is a leader in the 21st century, but we rely on a regressive tax system built around the sales and property tax structure of last century. If we continue down this path, the gap between the rich and the poor will continue and so will our budget woes.
The House Democrats have proposed several steps to address the problem. First, we’re proposing a Marketplace Fairness tax that will tax out of state sales internet retailers, generating $85 million to $135 million each year on internet sales, and will give our main street small businesses a chance to thrive. Plus it will help generate revenue for local governments.
We’re also proposing an excise tax on profits from the sale of stocks, bonds and other high-end investments. It addresses the unfairness in Washington’s tax system by asking the wealthy few who have benefited most from this economic recovery to pay their fair share. The 5 percent capital gains tax is low compared to other states, and has exemptions for retirement accounts, tangible property used in small business, timber, and all primary residences.
For decades we’ve been told low taxes is the key to American prosperity and freedom. The reality is freedom and prosperity come from not being burdened by health care costs, having access to quality and affordable education, and the chance to age in place with your loved ones. To do so, we must work together to fund the social structures we need as a state in a fair and equitable way.