Author Archives: Laudan

Announcing the Tax Watchdog Committee

Last year, legislative Democrats approved $26 billion in new taxes over the next decade. One the proposals in that package included an increase in the regressive business and occupation (B&O) tax on everything from health-care providers to housing services. Despite the state Department of Revenue indicating the bill violates four of five sound principles of taxation and whether the estimated revenues could be collected, Democrats passed a similar ‘fix’ in the third week of the 2020 session, shutting down amendments to ease tax burdens on small businesses. The original bill left a $200-million hole in the account that funds higher education.

Voters spoke clearly in last year’s General Election, rejecting a majority of the tax increases in advisory votes, but this week’s second bite of the apple has spurred Senate Republicans to focus their efforts on relentless tax increases by forming the Tax Watchdog Committee.

Members of the committee include:

“This B&O tax bill is our first alert,” said Fortunato. “Reimbursement rates for nursing homes haven’t kept up and they are struggling to stay open and looking for state assistance. So, what’s the solution to this problem? The majority is raising taxes on those same facilities. It’s shortsighted and emblematic of the problems with how the majority budgets. They create a problem, raise taxes to ‘fix it’ and leave taxpayers holding the bag.”

More Verbal Camouflage – Tax Increases are now Reforms

It’s verbal camouflage. Just like Initiative 976 that is tied up in the courts because of a “confusing” title, the Senate just approved a bill over my objection that “reforms” the state’s regressive business & occupation tax. What it really did is just make sure more small businesses are paying the higher tax rate. We have a crisis of nursing home closing in our state and what does this bill do? You guessed it, raise taxes on nursing homes. Watch my remarks on the Senate floor.

 

Fortunato proposal ices Seattle winter eviction ban

State Sen. Phil Fortunato, R-Auburn, has introduced legislation, Senate Bill 6651, to preempt efforts by local jurisdictions that undo the state’s carefully crafted landlord tenant laws concerning evictions.

In an extraordinary and arguably unconstitutional move, a Seattle City Council committee approved a policy sponsored by Seattle City Council Member Kshama Sawant that would ban evictions during the winter months.

“We’ve done a lot of work in Olympia regarding evictions and rental housing,” said Fortunato. “Last session, that is practically all we did on housing, besides raise taxes. What we don’t need are more bad ideas from Seattle that are just a ‘solution’ in search of a problem.”

There are currently over 160,000 rental units in Seattle. In 2017, 1,218 evictions were filed resulting in only 558 actual removals, or 0.3 percent of all units in the city. In addition, the Seattle Mariners contributed $3 million for the Home Base fund, which is managed by the United Way for purposes of helping those going through eviction to prevent homelessness.

“The proposal in Seattle is clearly an unconstitutional taking of private property,” Fortunato added. “The state cannot allow a patchwork of landlord tenant laws that result in people’s property rights being eroded.”

The Sawant-led proposal is very roughly modeled on policies used in Paris, France, but does not include other provisions such as insurance policies or narrow qualifications to have an eviction postponed. The proposal that was approved late last week includes none of these requirements and would ban eviction for nonpayment of rent.

“What this policy will end up doing is incentivizing more evictions,” said Fortunato. “If the eviction ban goes through, Seattle will just have to look forward to an eviction season come spring. It seems some members on the council want to rule by fiat. They should consider banning winter all together.”

Raiding state’s rainy-day fund is ‘stupid but not unconstitutional’

State Sen. Phil Fortunato is disappointed that Gov. Jay Inslee’s supplemental budget proposal seeks to raid the state’s constitutional rainy-day fund to the tune of over $300 million. Fortunato, R-Auburn made this statement regarding how the governor’s proposal could leave Washington vulnerable in the event of an economic downturn.

“In 2018 the state had a significant surplus yet the Legislature’s new Democrat majority diverted $700 million from the Budget Stabilization Account,” said Fortunato. “The state treasurer pleaded with them to not set that ‘dangerous precedent.’ Now Inslee wants to tap the savings account even more. It’s like the brother-in-law who borrows $700 million and says he’ll pay you back by borrowing another $300 million. When will the taxpayers get their billion dollars back?

“The rainy-day fund is supposed to be safeguarded in the event of an emergency or economic downturn.  Even though the state’s coffers are bursting at the seams with taxpayer money, due in large part to federal tax cuts and deregulation, the governor want to break the piggy bank and spend even more? It is, to quote Justice Scalia, stupid but not unconstitutional. When is enough, enough?

“The reality is the state’s budget is so bloated that even the sizable reserves in the treasury won’t last long in the event of a downturn. For that reason, withdrawing anything is a wrong move. We need smart policies to address our state’s homelessness situation, not the governor’s approach of throwing more good money after bad.”

Fortunato will vote NO on Transportation Commission’s mileage tax recommendations

Late Tuesday, the state’s Transportation Commission took a nonbinding vote recommending that the Legislature consider implementing a mileage tax to replace stagnating gas tax revenues. State Sen. Phil Fortunato, who is a member of the Senate Transportation Committee and on the mileage tax pilot work group, voiced sharp criticism of the move.

“This is just another example how out of touch people involved in transportation planning are with the voters,” said Fortunato. “Washingtonians voted to reduce car tabs and the commission’s response is to support yet another tax that won’t actually address the problem, and costs 35%, paid to a third party, to collect.”

Fortunato pointed to numerous presentations by the state Department of Transportation that notes usage of roads is not the problem when it comes to transportation funding. The real cost driver is inflation.

“If we do not have an inflation-linked funding source, then all of this is pointless,” said Fortunato.

He has introduced an innovative plan that, according to a nonpartisan analysis, shows more funding for roads with money already being sent to Olympia. By using the existing sales tax on motor vehicles, the state would see more than $54 billion in positive economic impacts, including thousands of jobs, more tax collections from sales tax and fewer hours in traffic for commuters. It also would provide a sustainable, fair and inflation-linked source of funding.

“The mileage tax is totally unfair to Eastern Washington because of the larger distances traveled in more rural parts of our state. Many people in Eastern Washington put hundreds of miles on their vehicles just getting to work, around a farm or going shopping,” Fortunato said. “And it’s not like this is going to solve the problem. Instead of talking about raising the gas tax, lawmakers will be back with their hands out raising the “mileage tax” for more revenue. It’ll never be enough.”

“Lawmakers need to solve the problem with the money we already send to Olympia.” added Fortunato. “Our state’s transportation problems require more than just another tax. Voters spoke clearly with their support of $30 car tabs; I doubt they’re going to be thrilled with charging them to drive on roads they already paid for.”

Fortunato’s plan to fully fund transportation can be found here. The economic analysis can be found here.

Fortunato to introduce ‘clean’ $30-car tab bill

Calls for special session to uphold will of the voters

Groundhog Day is still a little more than two months away, yet Sen. Phil Fortunato sees events unfolding eerily similar to the first time Washington voters approved $30 car tabs in 1999. Following that vote the state’s high court struck down the initiative granting tax relief, but legislators soon restored the $30 limit themselves, with former Gov. Gary Locke declaring that “$30 car tabs are here to stay.’ In hopes of keeping the issue from going all the way back up to the state Supreme Court this time around, the Auburn Republican has introduced straightforward legislation to protect drivers’ wallets.

“My bill gives the Legislature an opportunity to make things right with voters,” said Fortunato. “The court has once again caved to special interests and ignored the will of the voters, so I’m introducing a bill that will give taxpayers what they want – affordable car tabs – in a ‘clean’ way, aligning as close as possible to Initiative 976 to address the court’s issues. I call on the governor to convene a special session just like Gary Locke did so it can be approved without further delay.”

Legal challenges to the recently voter-approved car tab initiative argue that it violates the single-subject requirements in the state constitution. Similar arguments were made against Initiative 695, the original $30-car-tab measure. Simply put, voters may not have wanted all the additional items that the initiative included but had to vote for it to get the one item they wanted – the $30 car tabs.

“We are repeating history,” Fortunato said. “And I am going to do what I did then and ensure the will of the voters is protected. The Democrat-controlled legislature knew for several years that taxpayers did not want these inflated car tabs and at the behest of Sound Transit the majority failed to act. I’m hopeful that they will follow the lead of previous legislatures and do the right thing.

“Government has only its own greed to blame for the voters’ outrage.”

Fortunato’s letter to the Governor can be found here.

Fortunato takes Inslee, Constantine to task over dangerous ‘sanctuary’ policies

State Sen. Phil Fortunato, R-Auburn, is demanding action from Gov. Jay Inslee and King County Executive Dow Constantine following recent violence against Washington residents that he attributes to their endorsement of “sanctuary” policies.

Fortunato detailed his concerns in letters to Inslee and Constantine after meeting with local Immigration and Customs Enforcement officials. The 31st District lawmaker said he listened to how ICE’s ability to remove violent offenders is obstructed by policies giving sanctuary to people who are in the country illegally.

Despite the murders of two rural Washington sheriff’s deputies, committed during this year’s legislative session by people not legally in the country, Fortunato noted that Inslee went ahead and signed a state law making Washington one of a handful of sanctuary states.

“I had n opportunity to go straight to the source and figure out how we fix the serious problems caused by these dangerous sanctuary policies,” said Fortunato. “The legislation was billed as a way to protect immigrants, but what it is really doing is shielding violent criminals who are victimizing law-abiding residents.

“When the governor signed the anti-enforcement law, he said he ‘wouldn’t be complicit in these…depraved efforts to break up hard-working immigrant and refugee families.’ Instead, he’s just complicit in protecting violent criminals.”

Fortunato’s letter to Constantine took aim at the county executive’s order to change contracting rules at King County International Airport, commonly known as Boeing Field, in ways that would end ICE flights transporting criminal detainees.

“For King County to block these flights through what amounts to the coercion of private businesses at its airport is wholly unacceptable,” Fortunato added. “Forcing those flights to leave from Yakima instead means traversing mountain passes, which puts both officers and detainees at greater risk.

“These sanctuary policies have to change. Political pandering should not come ahead of protecting the public.”

Read the letter to Gov. Inslee by clicking here and here for the letter to the King County Executive.