Monthly Archives: March 2007

Washington State Income Tax Makes Sense

The Washington State Senate Ways and Means Committee held a hearing yesterday on two income tax proposals. Rumor had it that it was a token hearing and that they had no intent of doing anything. That’s unfortunate.

When you think about ways you can raise revenue to fund state services like education, health care, environmental protection and transportation, the income tax is the fairest way. If you are not making any money, you pay no tax. Pretty simple.

But property taxes on your home? You have to pay those regardless of how much money you make. Being unemployed is no excuse.

Sales taxes you also have to pay regardless of how much money you have earned. Right now we have the highest sales tax in the country. It makes no difference whether you are earning minimum wage or you are Bill Gates, you pay the same sales tax rate when you buy school supplies for your children and clothes and shoes.

Our heavy reliance on the sales tax and property taxes has earned us the dubious distinction of being labeled as having the most regressive tax system in the country. In a study released in 2003, the national Institute on Taxation and Economic Policy looked at the tax policies of all 50 states and issued a report: Who Pays? A Distributional Analysis of the Tax Systems in All 50 States. The report found that:

Washington’s Tax Code: Soak the Poor and Middle Class, Spare the Rich

When all Washington taxes are totaled up, the study found that:
# The wealthiest one percent of Washington taxpayers—with average incomes of $1.6 million—pay only 3.3% of their income in Washington state and local taxes. After accounting for tax savings from federal itemized deductions the effective rate becomes just 3.2%.

# Middle-income Washington taxpayers earning between $31,000 and $48,000 pay 11.1% of their income in Washington state and local taxes, almost three and a halftimes the effective rate of the very wealthy.

# But Washington families earning less than $17,000—the poorest fifth of Washington non-elderly taxpayers—pay a whopping 17.6% of their income in state and local taxes, more than five times the rate on the best off.

The study found that Washington’s taxes are so extremely regressive because the state lacks an income tax and instead relies primarily on regressive sales and excise taxes to pay for public.

Washington’s tax structure has not changed since this report was issued. What has changed is that the Washington State Legislature has given out a slew of Tax Exemptions to special interests, increasing the tax burden even more on individual taxpayers.

As reported by Marilyn Watkins of the Economic Opportunity Institute in a 2006 report entitled Adding Up: New Tax Breaks in Washington 2004-2006:

“In the three legislative sessions from 2004 through 2006, the Washington legislature passed at least 61measures either granting new tax preferences or extending old ones. These new tax breaks will cost the state nearly half a billion dollars in the 2007-09 biennium.”

Of course any effort to enact an income tax has to be done in conjunction with overall tax reform. Shifting more of the burden to individual taxpayers is not acceptable. This includes a corporate income tax, critical performance audits of tax exemptions, reducing sales taxes and a property tax Homestead Exemption on one’s principal residence.

Halliburton Kisses off USA, Moves Corporate Headquarters to Dubai

Bye bye Texas. Bye bye US of A, Hello Dubai. In a wonderful show of support for the USA and all the tax dollars they received, the giant oil conglomerate Halliburton, is leaving the US. The company that Vice-President Dick Cheney headed up for 5 years is moving its corporate headquarters to Dubai in the United Arab Emirates.

Their tactics remind me of Washington State’s home grown Boeing Corporation, which after receiving millions in tax breaks from Washington taxpayers via the Washington state Legislature, shortly thereafter moved their corporate headquarters to Chicago.

Corporate loyalty is to their bottom line , not to their state or country of origin these days.

It is not idle speculation to try to guess how long it will be before Halliburton re-incorporates in Dubai. It seems they have liberal tax laws and Halliburton can save hundreds of millions by not paying corporate taxes in the U.S. I think I can hear their President say Bye, Bye Suckers as he boards the company corporate jet to leave.

I’m sure they can see the writing on the wall. Despite all those lucrative no bid contracts Bush/Cheney lavished on Halliburton the Bush/Cheney era is not going to get better. The golden era of contracts after the Bush/Cheney “shock and awe” campaign in Iraq saw Halliburton reel in billions in no bid contracts to “undo the damage”. “Shock and Awe” was a stupid policy of arrogance.

The massive destruction that unnecessarily resulted from the playground bully approach of Bush/Cheney was overkill and contributed greatly to the subsequent inability of the Administration to set up a working economy to employ Iraqis and meet everyday needs like electricity and water. Even Halliburton’s billions in contracts didn’t bring recovery.

In fact, they are now being investigated by the new Democratic Congress.

Yahoo news notes that “Federal investigators last month alleged Halliburton was responsible for $2.7 billion of the $10 billion in contractor waste and overcharging in Iraq.”

Seattle PI Comics Undercuts Editorial Board

The Seattle PI on Sunday editorialized on the plight of African elephants again being slaughtered in large numbers for ivory. Research done right here in Washington State by the University of Washington’s Center for Conservation Biologyshows elephants are again being slaughtered for their ivory tusks.”

Meanwhile on the “Kids’ Page” of the Seattle PI Comics, the Mark Trail hunter friendly comic strip emphatically states that “The very animal (elephant)that is considered one of Africa’s most valuable assets has become one of it’s biggest problems.”
Let’s look a little closer at the truth of what “Mark Trail” says. “The two main killers in East Africa are HIV/AIDS and wild animals, particularly elephants. Because of their large appetites and migration habits, elephants are destroying crops , killing farmers and terrorizing neighbors.” Right below this sentence we see what looks like a white skinned man being tossed in the air over the elephant’s head.

God, this sounds pretty horrible – AIDS/HIV and elephants!! Only problem is it’s not true that elephants are the number two killer.

The World Bank in a 2006 414 page report entitled “Disease and Mortality in Sub-Saharan Africa” reports that out of some 10,788,044 deaths in 2000 the following breakdown occurred.

1 HIV/AIDS………………………………….20.4% = 2,200,761
2 Malaria………………………………………10.1% = 1,161,662
3 Lower respiratory infections………..9.8% = 700,573
4 Diarrheal diseases……………………….6.5% = 550,190
5 Perinatal conditions…………………….5.1% = 442,310
6 Measles……………………………………..4.1% = 442,310
7 Cerebrovascular disease………………3.3% = 336,005
8 Ischemic heart disease…………………3.1% = 334,429
9 Tuberculosis……………………………….2.8% = 301,785
10 Road traffic accidents ………………..1.8% = 194,184
11 Pertussis…………………………………..1.6% = 172,609
12 Violence …………………………………..1.2% = 129,337
13 COPD………………………………………..1.1% = 118,668
14 Tetanus…………………………………….1.0% = 107,780
15 Nephritis and nephrosis………………0.9% = 97,092
16 Malnutrition ……………………………. 0.9% = 97,092
17 War …………………………………………0.8% = 86,304
18 Syphilis ………………………………….. 0.8% = 86,304
19 Diabetes mellitus……………………… 0.7% = 75,516
20 Drownings ……………………………… 0.6% = 64,728
21 All other specific causes…………..23.2%= 2,502,826
* numbers are calculated from %’s taken from table on page 77 in report cited above.

So where are the figures for deaths caused by wild animals particularly elephants in this breakdown. National Geographic in a documentary entitled “Elephant Rage” stated that about 500 people worldwide each year are killed by elephants. Even falsely claiming these deaths would all be in Africa, they would comprise only .000046% of the year 2000 deaths.

So where does macho hunter “Mark Trail” get off on claiming elephants as one of the two main killers in East Africa. Car accidents in the above table alone killed some 194,000 people. Measles some 442,000. After AIDS/HIV, the number two killer was a mosquito, killing some 1.16 million people.. But I guess mosquitoes are hard to shoot with guns, so they don’t qualify as killers.

The next drawing in the ‘Mark Trail” cartoon depiction shows 3 large elephants charging what again looks like a white skinned person who has his hands up in the air, like he’s trying to surrender. The commentary is “Their increase in population is a problem in many parts of Africa as they are turning farm ecosystems into desert areas. The elephant’s fondness for sweet potatoes and other cultures crops has made them a nuisance to some farmers.”
It’s a curious turn of phrase to call what was once a wild natural ecosystem that was populated by elephants as now a farm ecosystem and blame the elephants for turning it into desert areas. The website Bagheera: In the Wild notes that:

The African elephant once roamed the entire continent of Africa, and the Asian elephant ranged from Syria to northern China and the islands of Indonesia. These abundant populations have been reduced to groups in scattered areas south of the Sahara and in isolated patches in India, Sri Lanka, and Southeast Asia.

Demand for ivory, combined with habitat loss from human settlement, has led to a dramatic decline in elephant populations in the last few decades. In 1930, there were between 5 and 10 million African elephants. By 1979, there were 1.3 million. In 1989, when they were added to the international list of the most endangered species, there were about 600,000 remaining, less than one percent of their original number.”

The World Wildlife Fund notes that

In both Africa and Asia , elephant habitat is being replaced by agriculture – both by small-scale farmers and international agribusiness such as palm oil. Not only are the animals being squeezed into smaller and smaller areas, but farmers plant crops that elephants like to eat. As a result, elephants frequently raid and destroy crops. And after being persecuted for decades and hunted almost to extinction, a wild elephant’s reaction to a human can be similar to our reaction to a mosquito – swat it. So while many people in the West regard elephants with affection and admiration, the animals often inspire fear and anger in those who share their land.”

In a New York Times article last year where they discuss ‘‘Elephant Breakdown,’’ a 2005 essay in the journal Nature, Bradshaw and several colleagues argued that

“today’s elephant populations are suffering from a form of chronic stress, a kind of species-wide trauma. Decades of poaching and culling and habitat loss, they claim, have so disrupted the intricate web of familial and societal relations by which young elephants have traditionally been raised in the wild, and by which established elephant herds are governed, that what we are now witnessing is nothing less than a precipitous collapse of elephant culture .

It has long been apparent that every large, land-based animal on this planet is ultimately fighting a losing battle with humankind. And yet entirely befitting of an animal with such a highly developed sensibility, a deep-rooted sense of family and, yes, such a good long-term memory, the elephant is not going out quietly. It is not leaving without making some kind of statement, one to which scientists from a variety of disciplines, including human psychology, are now beginning to pay close attention. “

Unfortunately spreading falsehoods and depicting the threatened elephant as a killer because that is how hunters like to view their sport of killing wild animals only helps to further erode efforts to not have the wild elephant’s only future be a trophy head on someones wall like of old or ivory trinkets in someone’s jewelry box. It’s time for Mark Trail to go the way of the elephant hunter of the past. The Seattle PI should cancel the strip.

China and India’s Soot, Smog and Wood Smoke Comes to the Northwest

Asia’s growing air pollution – billowing million ton plumes of soot, smog and wood smoke – is making the Pacific region cloudier and stormier, disrupting winter weather patterns along the West Coast and into the Arctic” reads the first sentence of a headline story in today’s Seattle Times. Just one more example of the interconnectedness of our climate worldwide and mankind’s impact on changing it.

The story was written by Robert Lee Holtz of the Los Angeles Times. While the Seattle Times reprint of the story includes most of the LA Times article (I’ve printed what was deleted below), it changed the headline to a question. Reading the original story, I wonder why?

The LA Times headline said “Asian air pollution affecting weather. The Pacific region has become stormier, scientists say.”
The Seattle Times headline puts it as a question – “Is Asia’s bad air stirring storms in West? New Research Study. Pollution may be seeding storm clouds on West Coast”

Read the first sentence again and read the article. Read the sentences the Seattle Times omitted from the original story. Why has the Seattle Times slanted the original story with it’s headline asked as a question? The result is that the research is downplayed. What seemed like strong statements supporting the conclusions of the study as reported by the LA Times are instead called into question.

The Seattle Times headline question makes it appear as if the research raised questions that hadn’t been answered. Where did the doubting headline come from? Isn’t this type of editorial doubting just one more example of why it’s taken so long to get movement on addressing pollution issues like global warming ?

In its discussion The LA Times cited a new study released yesterday. “Carried on prevailing winds, the industrial outpouring of dust, sulfur, carbon grit, and trace metals from booming Asian economies is having an intercontinental cloud seeding effect” writes the LA Times regarding a new study published in the Proceedings of the National Academy of Science. The PNAS is one of the world’s leading scientific journals respected for its research studies that are peer reviewed before they are published.

The lead researcher in the study, Renyi Zhang of Texas A&M University states that, “The pollution transported from Asia makes storms stronger and deeper and more energetic. It is a direct link from large-scale storm systems to [human produced] pollution.”

So now you know why we had that record rainfall just a short while ago. All those “Made in China” and Made in Korea” or “Made in India” things we bought so cheap are really coming with an additional cost. Maybe they’re not as big of a bargain after all.

What the Seattle Times left out of the LA Times article:

In fact, on any spring or summer day, almost a third of the air high over Los Angeles, San Francisco and other California cities can be traced directly to Asia, researchers said. …

Usually, dust and industrial pollutants take from five days to two weeks to cross the Pacific to California. …

At monitoring sites along the U.S. West Coast, scientists have been detecting pollutants that originated from smokestacks and tailpipes thousands of miles to the west.

Recently, researchers at the University of Washington have captured traces of ozone, carbon monoxide, mercury and particulate matter from Asia at monitoring sites on Mt. Bachelor in Oregon and Cheeka Peak in Washington state.

Cliff and his colleagues have been picking up the telltale chemical signatures of Asian particulates and other pollutants at several monitoring sites north of San Francisco and, during the last year, around Southern California….
“The air above Los Angeles is primarily from Asia,” Cliff
said. “Presumably that air has Asian pollution incorporated into
it.”

Headline comparisons:
A separate story in the Oregonian has this headline: “China’s dirty air threatens darker days for Northwest.” A statement, not a question.

Likewise The San Francisco Chronicle – “Pollution Tied to Rainstorms” puts the headline as a statement.

While the Tacoma News Tribune said “Pollution Tied to Rainstorms“, at least the Seattle Times reprinted most of the article in the LA Times. The TNT gave it a scant 4 short paragraphs.

The Olympian ran an AP story entitled – ‘Study finds Asia’s pollution brews storms over Pacific”

And while the Seattle PI has a story posted on its website with a statement headline (AP story – “Asian Pollution affects Pacific Storms” and 2 updates, I should note that today’s print edition had no story. Hopefully there will be a story in tomorrow’s print edition.

And I can not say for sure which of the other stories besides the Seattle Times story was also carried in their print editions.

House Democrats Working for Eyman

Seventeen House Democrats have signed onto HB 2117 in the Washington State Legislature. House Bill 2117 would re-enact the provisions of Eyman’s Initiative 747. Initiative 747 is currently being reviewed by the Washington State Supreme Court after a lower court overturned it.

I-747 limited revenue growth from property taxes each year to the lesser of 1% or inflation, whichever is lower. The problem is that if inflation is greater than 1%, the revenues available to cities and counties do not keep up with inflation and fewer services can be provided.

Many cities and counties, particularly ones that are experiencing little new construction, are facing revenue shortfalls. This is particularly true for some counties in eastern Washington.

In addition many voters are confused when they see their property tax bills go up 5% or more each year in their taxing district. They don’t understand that the 1% limit applies to the overall property tax valuations. If some homes increase in value faster than other homes in a city or county they will see a bigger tax increase on their personal property tax bills. The 1% limit does not refer to an individual taxpayer ‘s property taxes being limited to only a 1% increase.

What Washington State needs is a Property Tax Homestead Exemption on people’s principal residence. It could either be a flat exemption on all homes – like the first $50,000 of valuation is not taxed. Or it could be a percentage of the median property tax in a county – like the first 25% of the median property tax valuation is exempt from being taxed.

Tim Eyman signed into the Legislative hearings this year on property tax bills as opposed to the Homestead Exemption. He is not interested in changing our tax system to one that is fairer and less regressive – he is only for an across the Board cutting of taxes , which cuts funding for local services.

It seems that some Democrats aren’t willing to take a closer look at alternatives like the Property Tax Homestead Exemption or Circuit Breakers which would benefit those homeowners most needing help – low and middle income households, who pay a higher percentage of their wages for property taxes than the more wealthy do.

It is important that taxpayers contact their legislators and urge them not to re-enact I-747. There are better solutions to solving rising property tax burdens than across the board property tax cuts which benefit wealthy property owners like shopping malls and developers more than the average taxpayer struggling to make ends meet.

The Washington Tax Fairness Coalition has set up a website page that will allow you to communicate your opposition to rushing to enact I-747, rather than look at alternative property tax proposals that specifically help low and middle income homeowners most in need of help.

Click here to send a message to Legislators. This is a link that allows you to send a message to your Legislators. The Washington Tax Fairness Coalition message is on both I-747 and their priority bill to have a tax exemption report included as part of the State budget. You can modify their text to send your own message.

Washington State House Democrats supporting re-enacting Eyman’s I-747:

Christopher Hurst L.D. 31
Kevin Van De Wege L.D. 24
John McCoy L.D. 38
Dean Takko L.D. 19
Don Barlow L.D. 6
Troy Kelley L.D. 28
Christine Rolfes L.D. 23
Larry Seaquist L.D. 26
Mark Ericks L.D. 1
Deborah Eddy L.D. 48
Ross Hunter L.D. 48
Dave Quail L.D. 40
Lynn Kessler L.D. 24
Dawn Morrell L.D. 25
Brian Blake L.D. 19
Pat Sullivan L.D. 47
Patricia Lantz L.D. 26

These Legislators need to hear from their constituents that they don’t support I-747 tax cuts that hurt local services like paying for police, fire, parks, and libraries by not allowing revenues to even keep up with inflation. Eyman’s I-747 was not tax reform for a fairer tax system, it was a tax cutting measure to cut local government services. It is the wrong answer to fairer taxes for Washington taxpayers!

Senator Barack Obama More Liberal than Dennis Kucinich?

Senator Obama also has a higher liberal rating than any other Senator running for President this year. The National Journal has just released its 2006 annual ratings of Congress based on roll call votes on key economic, social and foreign policy issues.

When the New York Times political blog compared their lifetime scores they came up with the following ranking:

Senator Barack Obama………………….84.3
Representative Dennis Kucinich……..79.4
Senator Christopher J. Dodd ………….79.2
Senator Hiliary Rodham Clinton ……78.8
Senator Joseph R. Biden, Jr……………76.8

Former Senator John Edwards, who is also running for President was not included in this analysis but I came across the following written by Richard Cohen of the National Journal in Feb 2004:

“Judging by National Journal’s congressional vote ratings, however, Kerry and Edwards aren’t all that different, at least not when it comes to how they voted on key issues before the Senate last year. The results of the vote ratings show that Kerry was the most liberal senator in 2003, with a composite liberal score of 96.5. But Edwards wasn’t far behind: He had a 2003 composite liberal score of 94.5, making him the fourth-most-liberal senator. ”

“Edwards … had a moderate voting record during the first four years following his election to the Senate in 1998. The results positioned Edwards comfortably apart from Senate liberals, but not so far to the right that he locked arms with centrist Republicans. His consistent moderation placed Edwards among the center-right of Senate Democrats. But once Edwards decided to run for president and abandoned his bid for a second Senate term, his record moved dramatically to the left in 2003.”

I do not have access to the National Journal’s archives but maybe someone else can find and calculate Edward’s composite ratings. It would appear that he and Obama probably would come out pretty similar. The ratings vary year by year. Note below that Kerry scored much lower in 2006, coming in 12th in the ratings

On the 2006 composite liberal scores in the US Senate released by the National Journal today, Senator Richard Durbin (D) of Illinois received the highest score of 95.2 followed by Senator Barbara Boxer (D) of California with 95. The scores rank from 1 to 100, with 100 being the highest liberal ranking.

Washington State’s Senator Patty Murray (D) came in 8th highest at 89.3. Our other Senator, Maria Cantwell (D) came in 22nd with a score of 79.9.

Comparing the current Democratic Presidential candidates with a few other notable 2006 Democratic Senators, we get an interesting list:

1. Senator Richard Durbin (Illinois)…………………..95.2
2. Senator Barbara Boxer (California)………………..95
3. Senator Edward Kennedy (Massachusetts) ……..93.7
8. Senator Patty Murray (Washington) ………………89.3
10. Senator Barack Obama (Illinois)………..86 …Presidential Candidate
11. Senator Ron Wyden (Oregon) ……………………..86
12. Senator John Kerry (Massachusetts)…………… 85.7
15. Senator Russell Feingold (Wisconsin)………….. 84.5
17. Senator Christopher Dodd (Conn.)……..84 …Presidential Candidate
22. Senator Maria Cantwell (Washington) ………..79.7
23. Senator Harry Reid (Nevada)………………………78.2
24 Senator Joseph Biden (Delaware) ………77.5 …Presidential Candidate
25. Senator Dianne Feinstein (California)………….76.5
32. Senator Hiliary .Clinton (New York) …70.2 …Presidential Candidate
36. Senator Joseph Lieberman (Connecticut) ……67.5

On a separate listing of House members, Dennis Kucinich came in at #50 0ut of 454 members in the House. He had a liberal composite score of 87 for 2006.