Tag Archives: tax relief

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 leaders repeat call for action as inflation rates continue to climb

OLYMPIA… Another jump in price inflation at the state and national levels has Senate Republican leaders calling again for legislative action to provide financial relief to Washington families.

 

New numbers from the federal Bureau of Labor Statistics show the June inflation rate in Washington was 10.1% higher than a year earlier, a full percentage point up from two months ago. Nationally, the inflation rate was up 9.1% for the same period, the highest in 41 years and up from 8.3% two months ago.

From Senate Republican Leader John Braun, R-Centralia:

“The governor keeps rejecting any ideas for providing immediate financial relief to most families in the middle. All he will talk about is a 2023 tax credit that will be available only to some with lower incomes. It’s as though he doesn’t understand, or doesn’t care, how people at all levels in our state are being hit by what is now double-digit inflation. This new report shows they have seen their real earnings shrink for 15 consecutive months.

“The state has a mountain of cash that is continuing to grow. Our colleagues in the majority should join us to end the government greed and get more dollars back into the hands of families. It can be done without harming a single state program or service. Republicans are ready to act. Where are the Democrats? The affordability crisis in our state affects their constituents too.”

From Sen. Lynda Wilson, R-Vancouver and SRC budget leader:

“Budget leaders on the majority side seem stuck on what they call ‘targeted investments,’ which means showering more money on state agencies. The truth is, none of what they did this year to fatten state government will help the typical Washington family cope with an inflation rate that is continuing to grow, with no end in sight.

“Our Democratic colleagues don’t seem to realize that significant, direct tax relief – like a temporary suspension of the gas tax, which would let families keep more of their own money – should also be viewed as a ‘targeted investment.’ With prices up more than 10 percent that’s the best investment we could make to help Washington families. Legislators need to act.”

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.”

Use unexpected tax revenues to reduce short-term property-tax impacts

With state tax collections and projected revenues continuing to rise, Sen. John Braun says he’s willing to use up to $1 billion of unexpected revenue to smooth next year’s transition to the new education-funding system lawmakers adopted in June.

While more than 70 percent of state taxpayers will see a net property-tax decrease once reforms are phased in, the Legislature’s overhaul of the K-12 funding system has the entire state slated for a tax-rate increase of $0.81 per $1,000 assessed property value in 2018.

“Creating an equitable and long-term education funding system for our state required a great deal of compromise,” said Braun, R-Centralia, who serves as chair of the Senate Ways and Means Committee and a member of the education funding negotiating team. “Anything more than a short-term property-tax increase necessary to transition between funding systems was not my preferred method. Ultimately, a one-year increase was necessary to reach an agreement across the aisle.

“Having heard similar concerns about property-tax increases from the governor and my Democratic colleagues, I expect we will see bipartisan support for this legislation.”

Every year state government issues quarterly, four-year revenue projections. Braun proposes using 75 percent of the unexpected revenue growth – the amount that exceeds the June 2017 forecast – over the next four years to reduce the impacts of the $0.81 state property-tax rate increase in 2018. The total offset to the state property tax would be capped at $1 billion.

“With the Legislature having already passed a budget that balances for the next four years, this would provide us with an opportunity to fully fund state government while reducing the impact on working families and people with fixed incomes,” said Braun.

Beginning in 2019, under Washington’s new education funding system, a school district’s local levy will be limited to a maximum of $1.50/$1,000 of assessed property value, up to $2,500 per student. Braun said more than 70 percent of state property owners will have a lower tax rate between 2019 and 2021 than they do now, even if all school districts fully utilize local levy capacity. The amount of people receiving property tax relief would grow if school districts used only a portion or none of their locally allowable levy.

Once this year’s education-funding reforms are phased in school districts will receive the same or more money in state funding alone as they currently take from state and local taxes combined.