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October 2009
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Initiative consultant Tim Eyman's latest is another attempt to strap a corset on state government. Eyman's twist this time is to include county and city government as well. If passed, the measure would limit government's revenue growth to a rate determined by the combination of population growth and inflation. Any revenues above the limit would be returned as property tax reductions. Voters can create exceptions by passing taxes above the limits. The initiative doesn't effect any other taxing districts -- like school, fire or water -- however, because schools get a lot of funding from the state, they would not be unaffected by the limits. 28 Comments |
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Great idea, Tim! Unfortunately the government.... all governments, know no bounds. They all will spend , spend, spend... other peoples money seems so easy to spend, until they bankrupt the middleclass altogether.
Tim Eyman's Initiative 1033 has come at a time when I am facing Higher property taxes in Pierce County. Our family owns 2 properties, 1 bldg. on land that is rented to a D.Q. This property is located in a struggling area of Pierce county. When he new assessement came out this year, the land value went down, but the bldg. value went from $73,000 to $173,000 even though no updates have happened since the 1980's. The property next door, a tavern, experienced simliar - a $33,000 increase in value on a bldg. that needs major repair. If Dale Washam, The new Pierce County Assessor, rapes the taxpayers like this, I have no choice but to support Tim's initiative. The new taxes will put us out of business.
Voters beware. Initiative 1033 is a complex measure and will significantly impact taxpayers and voters in ways not being discussed by Eyman. Consider these three issues.
INITIATIVE 1033 FREEZES STATE AND LOCAL SPENDING AT THE CURRENT LEVEL. It says that none of the cuts made in public services as a result of the current recession can be restored without a public vote. Public votes take time, cost money and allow politics and special interest money to influence the outcome.
INITIATIVE 1033 IS A RADICAL SHIFT AWAY FROM REPRESENTATIVE GOVERNMENT. It would take away the current power of our elected public representatives to make budget decisions and turns the process over to budgeting by referendum. It does this not just at the state level but also for all 39 counties and all 281 cities in our state. It is a blatant attempt to undercut efficient and deliberative government by Tim Eyman whose goal is to shrink the powers of representative government.
INITIATIVE 1033 IS A COMPLEX WEALTH TRANSFER SCHEME. It would transfer sales tax dollars collected from everyone and use them to only pay property taxes for property owners. The problem is that not everyone owns property. This scheme increases the unfairness of our tax system. Renters will pay the same taxes as before under I-1033 but will both get no tax rebate and see no increased public services for their tax dollars.
I-1033 is special interest legislation designed to hamstring government from operating efficiently. It is a complex wealth transfer scheme that benefits rich property owners. And it is not needed.
There is no fiscal crisis demanding radical change of this nature. Initiative 1033 is a dream scheme by anti-government, anti-tax fanatic Tim Eyman and deserves a resounding NO vote this November. We don't need to make our current recession permanent.
If you are a senior citizen or working family or anyone else who doesn't own property, Eyman's Initiative 1033 will take hard earned tax dollars you pay and use them to pay property taxes of wealthy property owners.
Some 40% of the property in this state is commercial. So sales tax dollars which every citizen pays will go to only help property owners. Last year some 57% of state revenue came from sales taxes.
Some 35% of households in this state are renters according to the US Census Bureau. Eyman says paying property taxes for Bellevue Square, Tacoma Mall, Boeing, Microsoft and other corporations is more important than using tax dollares to help educate our kids or repair roads or keep seniors in their houses or health care for seniors, the disabled and children.
If you rent you lose twice. You will still pay the same sales taxes and other taxes under I-1033 but you will both see no tax rebate or increased public services.
I-1033 puts more tax burden on low and middle income families and makes no sense. Eyman's I-1033 doesn't help those that need help the most, but instead provides more tax benefits to those that have the most.
That's because tax rebates are not in proportion to the sales taxes and other fees you pay but in proportion to the property you own.
Vote NO on I-1033.
It is a big mistake to think that I-1033 allows government to grow. If you freeze spending at the current level, which I-1033 does, and only adjust for inflation and population all you're doing is allowing the purchasing of this year's services next year at their inflation adjusted price and foe whatever additional people you have.
In reality is, it is even worse than this. Eyman's inflation adjustment is based on a consumer index, the implicit price deflator that tracks consumer items and is a national index. Education costs and Medicaid costs and other public services have risen over time much faster than the implicit price deflator.
The result was that in Colorado, where Eyman copied this initiative from, education spending dropped from 35th to 49th in the country.
We don't need to repeat Colorado's disastrous experiment here. Vote NO on I-1033.
INITIATIVE 1033 WILL PUSH STATE DEEPER INTO RECESSION!
The chart Eyman used on King 5 misrepresents what is expected to happen to the state budget because it doesn't cover what is actually happening. Check out Graph 2 in the Policy Brief cited below.
Here is what the Washington Research Council in their Policy Brief says is the case:
“IMPACT ON THE 2009–11 STATE BUDGET.
Based on the March 2009 revenue forecast, the budget for the 2009–11 biennium enacted during the 2009 legislative session had a projected ending balance in the general fund of $488.8 million. The June revenue forecast reduced 2007–09 revenues by $183.8 million and 2009–11 revenues by $502.2 million, resulting in a projected 2009–11 ending balance of negative $195 million. The $676 million I-1033 diversion would increase that shortfall to negative $871 million.
IMPACT ON THE 2011-13 STATE BUDGET.
Even without passage of I-1033, the budget outlook for 2011–13 is grim. While the 2009 legislature did make substantial real cuts in spending, it also relied heavily on onetime money to balance the 2009–11 budget. Incorporating the June forecast, general fund spending for the biennium exceeds revenues by $1.4 billion. In addition, $2.5 billion in federal stimulus funds are being used to sustain programs that would normally be funded through the general fund. For 2011–13 these programs will shift back to the general fund.
Using OFM’s revenue growth assumptions, general fund revenues are expected to grow by $3.5 billion from 2009–11 to 2011–13.
We have yet to see projections of “maintenance-level” cost increases for 2011–13. Looking backwards, the maintenance level increase for the 2007-09 biennium was $1.4 billion, while the maintenance level increase for 2009-11 was $2.1 billion.
With a $1.4 billion maintenance level increase, the budget gap for 2011–13 would be $1.8 billion; with a $2.1 billion maintenance level increase the gap would be $2.5 billion. I-1033 would expand these gaps to $3.8 billion and $4.5 billion, respectively.”
Just what the state needs, further budget cuts to support an unneeded transfer of revenue from the state budget to only help property owners pay their taxes. Unfortunately not everyone owns property and this further puts the tax burden on those less well off, including seniors and working families that don't own any property.
I-1033 is not needed and makes the tax burden in this state even more regressive by transferring sales tax dollars collected from everyone to just pay taxes for property owners.
You can read the Washington Research Council's report here:
http://www.researchcouncil.org/publications_container/I-1033%20Final.pdf
Eyman in the Voters Pamphlet says we are the 8th highest taxed state in the country. What he doesn't say is that we also are the 8th highest state in terms of income per capita and this figure includes Federal taxes people pay.
But I-1033 only deals with state and local taxes. And the conservative Tax Foundation says that we are in the BOTTOM ONE THIRD of states in terms of state and local tax burden. We're NUMBER 35 (with 1 being the highest).
Tim obviously can't convince many people based on that figure so he has to use some other statistic which sounds better. But he is trying to pull the wool over your eyes. Face it, Eyman can't push his anti-governemnt, anti-tax measures unless he portrays things as really bad.
What is bad is that people are suffering from a national recession and Eyman wants to lock us into a permanent recession. Vote NO on I-1033!
The fiscal impact of I-1033 has been determined by the Office of Financial Management to be almost $9 billion over the next 5 years. Specifically they said:
"The initiative reduces state general fund revenues that support education; social, health and environmental services; and general government activities by an estimated $5.9 billion by 2015. The initiative also reduces general fund revenues that support public safety, infrastructure and general government activities by an estimated $694 million for counties and $2.1 billion for cities by 2015."
Here's the link to the original document -"Fiscal Impact Statement by the Office of Financial Management" so you can read it yourself.
http://www.ofm.wa.gov/initiatives/i-1033_fiscal_impact.pdf
Here is a YouTube video which has a very different perspective on I-1033 than Eyman has. They say Colorado's version of Eyman’s I-1033 has been a dismal failure. And they represent Republicans and businesses and teachers and others.
http://www.youtube.com/watch?v=kbF3_CiOtoM
We don't need to repeat Colorado's disastrous experiment here.
As Eyman has said, all citizens pay the property tax. If you rent, the cost of property taxes is included in your rent. If you buy products, the cost of property taxes are included in the prices of the items you buy.
This bill is exactly what we need. It puts a limit on the amount that this out-of-control government can spend. The state budget could stand to be cut by 50% in my opinion.
By the way, I rent my apartment, and am low income, so this is not coming from "the wealthy" as some will say.
Eymans Initiative is a another great step to to put taxpayers money back in their hands.. Think of this democrats..
In this economic time.. The state just raise minimum wage. Some think this is a good thing.. all businesses just raised prices to cover the wage increase, which in return means more money back to the state for B&0 taxes...MMMMMM, do your research..
Also the governor raises higher education tuition.. HMMM, what a great time to do that.. Unemployment rate at an all time high... good job governor.
Go Eyman, I will vote for it
Tim made a statement that defies business 101: he said that everyone pays property taxes and everyone will benefit from the rebate. This is wrong because if I am a renter, I will not see any part of the rebate because my landlord (the one who officialy pays the property taxes) will be the person to get the rebate and he will have no reason or incentive to give me my percentage due. So in the end, we all pay the tax, but only a select few get the real benefit.
Tim didn't answer Schauffler's question. Everybody pays taxes but only property owners will get a tax break under his plan. If you think your landlord is going to share his/her rebate with you then let me know. I'd like to rent an apartment from that person. The truth is, this is a beg tax break for the biggest property owners. The less you onw, the less you get. Does Bill Gates really need a tax break?
I-1033 proposes to transfer tax dollars collected from everyone to just pay property taxes for property owners. It will make our tax system more regressive and shift more of the tax burden onto lower income taxpayers to benefit those with lots of property.
I-1033 also proposes to freeze all public spending at its current level by Washington State and all 39 counties and all 281 cites. The only way to increase public services will be to have repeated votes by referendum on budgets. No services lost due to the current recession can be increased without a public vote.
I-1033 proposes to abolish our current form of representative government in place since our state was formed by removing the current power of local elected officials to increase their current budgets.
All of these proposals are radical changes, not something minor. They will have lasting impacts for years to come as Colorado saw when they enacted a measure like Eyman’s I-1033. Voters there recently suspended the measure as too severe in cutting public services.
We don't need to change our current tax system to create an even more regressive system. Already lower income people pay a higher proportion of their income in taxes than the wealthy. We have the highest sales tax in the country and will still have be the highest if voters pass I-1033.
We also have no income tax unlike 43 other states. But the real number to keep in mind is the Tax Foundation's rating that we are in the bottom third of states in terms of state and local tax burden overall. WE rank 35th (with 1 being the highest).
By the way, EVERY TIME taxes are lowered in this country, government revenues go UP.
Also, to those arguing that landlords won't "give you your due". You're not "due" anything. But this does mean they won't have to raise rent as high as they would if taxes were increased, so you are still receiving benefit. Landlords will keep rent at a competitive rate, or you will move elsewhere.
Brady--
I think you're still taking those steroids.
I've had enough of Tim Eyeman's initiatives that cripple our state. We're a great state to do business in, so basically this is just something Tim wants to do for self gain and to make more money for himself. Look at the video and watch how arrogant Tim Eyeman is, he won't let the other guy talk.
I will vote NO to Eyeman's latest scheme. This is irresponsible and will not deliver what is promised. I am ready to see us abandon the initiative process altogether . . .
Steve Zemke sounds as though he is a politician or should be so he can continue screwing the taxpayers. Way to go Tim.
Steve Zemke sounds as though he is a politician or should be so he can continue screwing the taxpayers. Way to go Tim.
I belive Tim's goal within the initiative processes is to make our "elected and or appointed officials" responsible for their actions. You cannot think that big government is effective and not expensive...Here's one example...The city just finished making a sidewalk in my neighborhood, roughly 50 feet - althought they did not work daily- it took 5 weeks to complete during the driest part of our summer...WAY TO GO. Each time there were at least 3 trucks and 3-4 individuals maybe 4-5 actual fulls days. These folks have a great health plan and retirement plan that I DO NOT. Can anyone say outsource with a bid process!.
Here's another program guilded as "for schools" WA State Lottery, what a scam. Anyone know where that money is...I understand it created a lot of jobs...administartive to pay for the program...I could be wrong.
Perhaps you think Tim illinformed but BIG Goverment is not the answer (often resulting in more expenses than not -and taxing property owners in purpotuity is bordering unconstitutional...get it "unconstitutional", so if YOU" want to pay for it great, go for it.
I for one feel the sting of irresponsibilty everytime a politician says we must do this or Billy won't be able to go to school or the fireman get laid off, etc, etc. Most all politicins do this now because it seems engrained as the norm...quite possibly because of the "you have to do something" attitude many voters who really do not understand how their wishes will effect even them -as many of Tim's nay-sayers even point out. A bigger pool of money doesn't meant it works. Crooked folk usually come along and steal it.(yes even good people...we are human after all).
WAKE UP People, there are better ways to do things than just keep passing costs on to property owners and raising taxes. Current National Health reform included, egads, if it does not pass the "Constitutional" litnes test then, the bill shant be on the table.
-please forgive mispells and grammer-
In hopes of Common Ground - ask the question...Why then are we (state and nation) now trying to find money when those WE voted to please take care of matters, have failed us. Lets get the right folk in to represent us PLEASE.
Several reasons to oppose I-1033:
1. It's written by Tim Eyman.
2. It's the wrong solution. Controlling government spending is important but limiting revenue is not the answer. If your car gets 10 mpg you don't improve it by only filling the tank half way, you give it a tune-up, properly inflate the tires, change your driving habits. If government is spending too much, shine a light on wasteful programs, read the budget to see where the money is supposed to go and make the agencies accountable to make the proper use of the money. If you want good schools, police and fire protection, parks, libraries, and everything else that the government provides, we as taxpayers must pay for it. Since we pay the bills, the government has the obligation to report to us on what was spent. It must be totally transparent.
3. It was written by Tim Eyman.
Lots of BS commecials from the teacher unions. Anything that keeps my money out of the hands of the state has my vote.
In addition to the toxic long term effects of I-1033, I have a greater concern.
Tim Eyman has taken a grass-roots oriented safety valve outlet for citizens groups and turned it into a "cottage industry", designed to bring him a handsome living. In February of this year, there had been 17 applications for initiatives. A number which, I'm told, is pretty much normal. However, 10 of those initiatives were filed by Tim Eyman, while he shopped for the idea that would gain the most revenue for those promoting it. That's not what was intended, when the Progressive Era reforms of initiative, referendum, and recall were passed in this state.
Mainstream Republicans of Washington has taken a position against I-1033. They recognize the need for change but refuse to accept this initiative as the method of achieving that change.
In addition to the toxic long term effects of I-1033, I have a greater concern.
Tim Eyman has taken a grass-roots oriented safety valve outlet for citizens groups and turned it into a "cottage industry", designed to bring him a handsome living. In February of this year, there had been 17 applications for initiatives. A number which, I'm told, is pretty much normal. However, 10 of those initiatives were filed by Tim Eyman, while he shopped for the idea that would gain the most revenue for those promoting it. That's not what was intended, when the Progressive Era reforms of initiative, referendum, and recall were passed in this state.
Mainstream Republicans of Washington has taken a position against I-1033. They recognize the need for change but refuse to accept this initiative as the method of achieving that change.
It is funny to see everybody so concerned about the rebate(everybodys handout wheres mine attitude) THIS INTITATIVE IS NOT ABOUT PROPERTY TAX REBATES. Get a clue this about putting a cap on government spending in case you have not been paying attention the government has spent all of us into oblivion, did you know the debt is at 125 trillion dollars, all funded and unfunded mandates. PEOPLE seriously NEED to WAKE UP.
Any initiative that is written or cowritten by Tim "The Lie-Man" Eyman is not worth anyones vote, let alone the paper that "Lie Man" wrote it on.
VOTE NO ON ANY AND ALL PROPS AND/OR INTIATIVES THAT Tim "THE LIE-MAN Eyman WRITES.
Like most simplistic cures proposed by Tim Eyman, the devil is in the details. Such it is with Initiative 1033. On the face it appears an innocuous attempt to reign in state and local government. It is in reality a back door attempt to eliminate the property tax. To illustrate I-1033’s devastating effects, let’s look at it as if your local government (in which you are a stakeholder) was a private company. Suppose you were a shareholder in a business and I-1033 was imposed on your company. Under the new law you are allowed to increase your revenues based on the implicit price deflater (think small CPI increase) and a nominal amount for growth. You might initially think that is OK because at least your company will be able to make some small profit. Not really.
Suppose your company revenue dropped because of a deep recession. You have to lay off employees and cut services and products that many customers want and need. But when the economy rebounds and revenues begin to increase, you are not allowed to keep any of the new additional revenue. It is transferred out of your hands. You say, “but my company revenues aren’t even back to where they were a few years ago.” Doesn’t matter, I-1033 sets a new base at whatever is the lowest annual revenue amount you realize. “No fair”, you cry, “how can I rehire my employees or restore service levels let alone expand product lines if all the company revenue above the inflation rate is taken away.” “Too bad”, says I-1033, “that’s the law!” “But many of the costs of our business such as employee health care premiums and construction have risen much faster than inflation.” “Sorry to hear that” says I-1033, “but that’s your problem.”
Then your frustration mounts even more when your company is offered a new valuable service line that your stakeholders really want and customers are willing to pay for. But I-1033 says you will likely have to turn the offer down. You see, you won’t’ really be able to expand your service line, as the additional income from the new line will be transferred out of your hands, leaving you to pay the costs of the new service from existing revenue. You’re not allowed keep any of the new revenue to pay for it. You could wait until the annual stakeholders meeting and ask for a vote to retain the revenue, but the campaign and election costs will be expensive, and in the interim the business opportunity may be lost.
That is how I-1033 would play out if passed into law. In this example, the company of which you are a shareholder is your local government. I-1033 would effectively reduce available general fund revenues, take away the ability to manage the ups and downs of the economic cycle, limit your community’s ability to fund unanticipated costs and emergencies, eliminate incentives for economic development (as all increased revenues would go to the property tax relief account), and would require costly votes to increase the revenue base. Buyer beware, I-1033 is a wolf in sheep’s clothing.