Author Archives: Laudan

Fortunato calls on Sound Transit to halt $10 million giveaway

Sen. Phil Fortunato, R-Auburn, is calling on Sound Transit’s governing board to reverse a decision made last week to transfer millions of dollars of property over to non-profits at a financial loss. Sound Transit plans to transfer property valued at $18.5 million for a third or half of its market value in order to provide affordable housing sites in Seattle.

“Suddenly, the agency that claims every dime is essential for transit projects and can’t cut car tabs by a single penny, can afford to give away $10 million,” Fortunato said. “Sound Transit is taking millions from the budgets of families with school age children and seniors in the name of ‘congestion relief,’ so that it can turn around and give those millions away to something that has nothing to do with transit.

“This is pure bureaucratic arrogance. Tell voters it is all for congestion relief, then do whatever you want and give voters’ money to housing in Seattle. Every board member voting for this should be fired.”

Sound Transit made the decision in Resolution 2017-20 on May 25. It allows for a surplus parcel known as the “Roosevelt Station – Central Transit-Oriented Development Site” to be sold a steep discount for the purpose of affordable housing. In a letter (linked below) to Sound Transit Chief Executive Peter Rogoff, Fortunato questions the legality of the move based on stipulations in the federal grant and whether property seized through eminent domain for transportation purposes can be given away at a discount for unrelated purposes.

“This is social engineering insanity,” said Fortunato. “If Sound Transit thought people were mad about car tabs tripling before, wait until the people hear about this. This agency is absolutely tone deaf to the people they serve—or in the case of my district, the people they do not serve but just extract taxes from.”

Sound Transit.Rogoff Letter

New capital gains disaster in Connecticut a warning for Washington, Fortunato says

Gov. Jay Inslee and his fellow Democrats are pressing the Washington Legislature to adopt a new income tax on capital gains, but before they go any further, they might want to check with their colleagues in the Connecticut General Assembly, says Sen. Phil Fortunato, R-Auburn.

A brand-new $1.8 billion budget disaster in that state is the direct result of a capital gains income tax – almost exactly like the tax Democrats are proposing here.

“We couldn’t have asked for a better-timed warning,” Fortunato observed. “Those who think an income tax on capital gains is a good idea are ignoring its volatility. Or else they understand the danger full well — and they are counting on it.

“By backing the state into a corner they might be able to force Washington to adopt a broader income tax that would hit every taxpayer in the state.”

Connecticut officials revealed April 28 that plummeting revenues from that state’s tax on capital gains income have left an enormous hole in their budget. Connecticut’s taxes are weighted toward the rich. But in 2016, the rich didn’t sell as many stocks as the state expected – so projected capital gains tax collections fell 8.9 percent. Connecticut now must raise hundreds of millions of dollars in a hurry, and flummoxed legislative leaders say they may have no choice but to raise income-tax rates for everyone.

“Democrats in Connecticut are already talking about jacking up taxes on the middle class,” Fortunato said. “Least shocking news ever.”
The budget disaster in the Nutmeg State has direct implications for Washington. This is one of just seven states that does not impose an income tax. Washington voters have repeatedly rejected an income tax, nine times since 1934, frustrating advocates of higher taxes and spending. Now Gov. Jay Inslee and his fellow Democrats are taking a different tack, proposing a narrow type of income tax, on capital gains income, and claiming that it would only affect the rich.

“That’s what they said in Connecticut, too,” Fortunato warned. “The income tax was supposed to bring stability to state government and make the rich pay more. But this crisis in Connecticut shows how foolish it is to balance your budget on a relative handful of people.
“Eventually, a downturn will turn the money spigot off. When that happens, politicians will head straight for the pockets of the little guy. That’s why I proposed a constitutional amendment to ban income taxes in this state.”

For more information:
WTNH-TV (New Haven, Conn.), April 28, 2017: Income tax revenue collapses; Malloy says taxing the rich doesn’t work
New Haven Register, May 1, 2017: Drop in income tax receipts plunge Connecticut’s budget further into deficit
Connecticut Mirror, May 2, 2017: House speaker: Deficit too great to rule out income tax hike

Fortunato hails Senate move to cut Sound Transit car tab tax

Car tab taxes would be cut by 55 percent and Sound Transit board members would be required to stand for direct elections under legislation that passed the Senate Tuesday afternoon.  Senator Phil Fortunato, R-Auburn, is a cosponsor of both bills, SB 5001 and SB 5893

“If Seattle politicians think their constituents are mad about car tabs tripling, they should visit my district where we voted no on Sound Transit 3 by more than 60 percent,” said Fortunato. “Cutting car tabs by 55 percent only costs Sound Transit 4 billion dollars over 30 years, but you’d think from how they’re complaining we’re asking for their first born.”

Both bills now go to the House for consideration.  SB 5893 was amended from its previous version to structure the car tab tax cuts as rebates to eliminate the estimated expense of defeasing bonds.   The new tax cut mechanism reduces the estimated loss of revenue to Sound Transit from approximately $12 billion to just under $4 billion.

“This might reduce the scope of the next party they hold for being a decade late and eighty percent over budget, but taxpayers will feel real relief,” said Fortunato. “All we need now is for the House Democrat leadership to stop protecting Sound Transit and start protecting the taxpayers.

 

VIDEO: Fortunato fights to cut Sound Transit’s inflated car tab taxes

In this video, Senator Fortunato outlines his efforts to hold Sound Transit accountable and get taxpayers relief from their inflated car tab taxes.  Sen. Fortunato also describes how Sound Transit’s car tab tax defenders wanted to use funds dedicated to homeless and foster kids to protect Sound Transit’s outrageous tax collections.

VIDEO: No one is talking about an INCOME TAX–except that they are!

In this new legislative video, Senator Phil Fortunato describes his effort to ban income taxes in Washington and who opposed it.  He also describes how opponents of his ban on the income tax claimed “no one was talking about an income tax” even though plenty of them were talking about AND supporting an income tax.

 

Fortunato resolution honors 119 years of Eagles service

On Monday, the Senate honored the 119 years of community service given by the Fraternal Order of the Eagles (F.O.E.), an organization devoted to peace, prosperity and gladness since its founding in 1898.   Senator Phil Fortunato, R-Auburn, sponsored the resolution and related the vastness of the Eagles’ cultural impact from the Senate floor.

“The Eagles are responsible for the institution of Mother’s Day,” Fortunato observed. “If you have a mom and you’ve given her special recognition on Mother’s Day, you’ve been influenced by the Eagles.”

The Eagles were founded by a group of theater directors in Seattle and have seven American presidents among their past members, including Theodore Roosevelt, John F. Kennedy and Ronald Reagan.   In addition to Mother’s Day, notable Eagles achievements in social policy include its “Jobs After 40” program to end age-based discrimination.  The Eagles were also a driving force behind the implementation of Social Security and worker’s compensation.

The Fraternal Order of the Eagles has committed millions of dollars to various causes including $25 million dollars to the University of Iowa F.O.E. Diabetes Research Center and more than $1 million dollars to Saint Jude Children’s Research Hospital.

“The Eagles are an incredible testament to the independent American character observed by Alexis de Tocqueville,” Fortunato said. “Citizens here don’t just wait for government to solve problems; we band together as individuals and make things happen ourselves.  The Eagles have been doing that for 119 years.”

The Grand Worthy President of the F.O.E., Jerry Sullivan and his wife Maxine, were on hand to witness the Senate action, as was the Worthy President of the Washington State Eagles, Bill Walton.

 

Fortunato meets with Daffodil Princesses

This year’s Daffodil Princesses came to Olympia to promote the Daffodil festival and share their ambitions for the future. Accomplished young women from high schools throughout Pierce County represent the festival as members of the Royal Court.   The Daffodil Festival traces its origins to the city of Sumner in April of 1926, where a garden party attended by civic leaders from 125 Western Washington towns celebrated the beauty of the varied daffodils. The festival has become an honored tradition in Pierce County, and second only to the State Fair in popularity.

Senator Fortunato had the honor of meeting several of the Daffodil Princesses who stopped by Olympia to promote the festival to legislators.