Democrats in Washington State’s House of Representatives have unveiled their budget proposal – HB 2127 – which they claim closes a $1 billion budget shortfall without raising taxes or borrowing money. In reality, the budget does raise taxes, and relies on accounting gimmicks to solve their $1 billion spending problem.
The budget proposal, along with SB 2728, would allow counties in Washington State to add a 6-perent utility tax that in many instances would wind up on taxpayers’ cell phone bills. Washington State already has the 2nd highest national tax burden on wireless, with a combined state and federal rate of 23-percent. An added 6-percent utility tax would impact the 6 million wireless subscribers in the Evergreen State – it should also be noted that over a quarter of households in Washington are wireless only.
In addition to opening the gates to burdensome county-level taxes, the Democrats’ budget defers certain payments to education until the next two-year budget cycle, kicking the can down the road and dodging the growing need to address the state’s out-of-control spending problems in an election year.
What the House Democrats have proposes is not a budget, but a rather a placebo, getting them out of having to make tough decisions in an election year and setting them up to pass what will probably be a massive tax increase in the next budget cycle.
What do you think? Are Washington State Democrats kicking the can down the road?