Tag Archives: gas tax

Republican leader calls for new path toward housing affordability

20th District senator says Democrat colleague’s proposal
to reduce pain at pump also deserves consideration

CENTRALIA… The excessive financial windfall from Washington’s cap-and-tax policy should be used to address the affordability crisis facing the state’s homeowners and renters, says Senate Republican Leader John Braun.

As of last month, state government had already raked in $919.5 million from the combination of quarterly and other auctions of “carbon allowances” allowed under the cap-and-tax policy – formally known as the Climate Commitment Act. The state Department of Ecology announced Wednesday that nearly 8.6 million more allowances sold at a “settlement price” of more than $63 apiece at its third-quarter auction, held Aug. 30. The exact proceeds from that auction will be announced later this month.

Under the cap-and-tax law, roughly $720 million in cap-and-tax proceeds are to be reserved for transportation purposes each fiscal biennium. Braun says the remaining auction proceeds, which could easily top $1 billion before legislators convene for their 2024 session, should be turned into financial relief for property owners and renters.

“While Republicans are determined to address our state’s affordability crisis, many on the majority side seem content to let the cost of living climb even higher,” said Braun, a Centralia resident who serves the 20th Legislative District. “The governor and majority Democrat leaders apparently believe they must discourage fossil-fuel emissions by any means available, even though their climate policy is functioning just like another one of the regressive taxes they often complain about. It’s obvious to everyone but Governor Inslee that cap-and-tax is the reason Washington has had the highest or next-to-highest gas prices since June – which are blowing up the budgets of working people and families, with low-income families hit hardest of all.

“As Democrats are clearly unwilling to join Republicans to reduce the cost of gas in our state, let’s at least bring housing costs down instead,” Braun said. “Take the excess proceeds from their cap-and-tax policy – meaning the money not promised for transportation – and commit those to providing property-tax exemptions and credits to renters, as Republicans had proposed during this year’s legislative session.

“Those who truly believe Washington’s tax system is regressive and are convinced that higher gas prices mean less consumption and therefore fewer emissions should jump at this. They can be true to their climate agenda while putting those carbon-pricing dollars to work making housing more affordable, especially for low-income people. It is inexcusable not to do this.”

Braun also voiced support for a new proposal from Sen. Mark Mullet, D-Issaquah, that is aimed at reducing the cap-and-tax policy’s inflation of Washington gas prices.

“Senator Mullet has put a thoughtful package of ideas on the table. It appears to respond to concerns I’ve heard and also is in line with some of what a group of lawmakers proposed to Ecology in July. I appreciate that he also is proposing tax relief, in the form of a temporary reduction in car-tab costs, and following through on the fuel-cost exemption that was promised but has not been delivered to our state’s agricultural and maritime industries.

“Like our housing-affordability proposal, his deserves serious consideration sooner rather than later from the leaders on his side of the aisle. We must do better.”

STATEMENT: Just in time for summer driving, Inslee cap-and-tax scheme pushes Washington gas prices to highest in nation

CENTRALIA… The average price of a gallon of regular gasoline in Washington is now worst in the nation, and Senate Republican Leader John Braun says the state’s controversial cap-and-tax law is clearly the main driver of the price jump.

Braun, from Centralia, serves Washington’s largely rural 20th Legislative District. He offered this statement regarding the harm being caused to low- and middle-income Washington families, especially those in rural areas, by a law that functions as a gas tax while doing nothing to improve the state’s roads:

“No matter what you call it – cap-and-trade, cap-and-invest, or the more accurate cap-and-tax – this is also a case of bait-and-switch from Governor Inslee and the Democrats who currently run Olympia.

“Almost a year ago the governor defended this scheme by claiming any effect on gas prices would be ‘minimal’ or ‘pennies’ once 2023 arrived, and more of the law took hold. That was either ignorant or dishonest. A gallon of regular unleaded in our state cost $3.84 on average the first week of January. Today it’s $4.89. No one would call that ‘minimal’ or ‘pennies.’

“Those responsible for this harm keep trying to pin the shocking cost increase on the oil companies, yet I don’t hear them explaining why any oil producer would have incentive to raise prices in our state so dramatically in comparison to our neighbors. In Oregon you will pay $4.58 today, and $3.98 in Idaho. The Democrats’ cry of ‘price gouging’ just doesn’t stick when you set all the gas taxes aside and see Washington’s base cost is 20 cents more per gallon than Oregon and 54 cents more than Idaho.

“Midway through this year’s legislative session, as gas prices were falling most everywhere but here, Republicans again proposed a temporary suspension of the state gas tax. An immediate savings of nearly 50 cents per gallon obviously would have helped families lower their cost of living and employers lower the cost of doing business. But our Democratic colleagues showed no more empathy than they had in 2022, when Olympia had a $15 billion surplus and easily could have acted to make driving more affordable.

“If there is price gouging, it’s being done by the governor and his political allies. They have used the power of the state to turn carbon emissions into a commodity, as part of their crusade against fossil fuel and internal-combustion engines. And there’s no end in sight to the pain at the pump, just as the arrival of summer has people looking forward to some traveling and recreation. We must do better.”

STATEMENT: Republican leader renews call for legislators to suspend gas tax

OLYMPIA… There is one sure way to lower the cost of gasoline, says Senate Republican Leader John Braun, and that’s for the Legislature to suspend the 49.4-cent state portion of the gas tax.

Braun, R-Centralia, said legislative action makes even more sense now considering how gas prices continue to rise, with no end in sight – and considering how the state’s revenue situation continues to improve. He offered this statement today, as AAA reported the average cost per gallon of regular unleaded reached $5.16 in the Seattle-Bellevue-Everett metro area; a month ago the average in that same area for the same fuel grade was $4.85.

“In a matter of hours, the Legislature could meet and pass legislation to knock almost 50 cents off the price of a gallon. In the central Puget Sound area, gas has gone up 31 cents per gallon on average in the month since Republicans last called for legislative intervention. How much higher does it have to go before our Democratic colleagues decide their constituents should get some relief?

“The May revenue collection report is up 428 million dollars from the February revenue forecast. Clearly, the gas tax could be suspended through the end of this year – as Republicans first proposed during this year’s legislative session – without jeopardizing a single state program or service. The majority party should be able to agree on that point.

“The federal government has been ineffective at slowing the rise in fuel costs. Democrats at all levels can blame Putin all they want, but that’s not the underlying cause of the price increases, and in any case the Ukraine situation isn’t going to be resolved anytime soon. Our Legislature represents the only real hope for the people of Washington to pay significantly less at the pump.

“If our Democratic colleagues here in Washington are OK with the soaring gas prices because they see it as a way to get people out of their cars, I wish they’d come out and say so. If not, they should join with us to call a special session and suspend the gas tax with a strong bipartisan vote that could deter a veto. We have an affordability crisis in this state, and reducing the cost of fuel is a good way to get at that.”

Legislators should reconvene and suspend gas tax, Republican leader says after seeing revenue report

OLYMPIA… As the nation’s inflation rate hit 8.5% this past week, a report from the state Economic and Revenue Forecast Council indicated state-revenue collections are running more than $255 million above what it projected in February.

Senate Republican Leader John Braun of Centralia responded by calling again on the Legislature to support tax and inflation relief for the people of Washington:

“State government’s financial picture keeps getting better while the affordability crisis keeps getting worse. If you’re younger than 40, you have never had to contend with an inflation rate this high. Higher costs for food, gas, housing and energy are predictably harder on gig-economy and hourly-wage workers, and older people with fixed incomes. For younger people looking to become first-time homeowners or start a family, it’s a real shock – and the Democrats don’t seem to have any useful answers.

“Republicans offered idea after idea during this year’s session for helping families with the rising cost of living. In spite of a 15-billion-dollar budget surplus we couldn’t get our Democratic colleagues to agree. They just poured most of those billions into making government even larger.

“Right before the Legislature adjourned in early March, the current majority said no to a Republican proposal to suspend the 49.4-cent state gas tax through the end of 2022. Fortunately, the latest revenue report is keeping that opportunity alive. If Democrats would just drop their resistance to providing inflation relief, we could easily meet in a one-day, remote special session to suspend the regressive gas tax and maybe also consider a veto override or two.

“Democrats can talk about ‘Putin price hikes’ all they want – gas prices have been increasing all year long, so much that one in our state’s own congressional delegation called for a gas-tax suspension well before the invasion of Ukraine. The new transportation package they pushed through in Olympia this year may mean more bicycle lanes, and free transit for children, but it won’t do a thing to help parents afford the gas to get to their jobs or to their kids’ soccer games. The governor supports the idea of Washington refineries helping ensure gas is available to meet the needs of families and employers; he and Democrat legislators should now join Republicans to make gas more affordable.”