Jolt
Afternoon Jolt: Corporate Tax Break Version
Today's Loser(s): State house members fighting corporate loopholes.
This afternoon was a fateful one for the fight against the billions of dollars in tax exemptions legislators have sought to bring out into the open this session.
Rep. Eileen Cody's (D-34, West Seattle) office told PubliCola today that her bill to close some tax loopholes to fund the Basic Health Plan is unlikely to get a hearing in the ways and means committee, much less a vote.
The legislation would have closed a $50 million bank loophole on mortgage loans, as well as a tax break for cosmetic surgery, and used those funds to keep basic health up and running for the foreseeable future.
Rep. Bob Hasegawa's (D-11, Beacon Hill) legislation to require tax exemptions to count as budget expenditures in the governor's biennial budget received a hearing today. Only one person testified in favor of Hasegawa's legislation: Nick Federici, a lobbyist for social services, labor, and low-income folks.
Sen. Maralyn Chase (D-32, Shoreline) is sponsoring the corresponding bills in the senate. Which brings us to today's winner—and today's big irony.
Today's winner: Tech companies
Flaming lefty Chase has joined up with a handful of conservative Democrats to sponsor a bill that would extend a tax break for tech company investment in research and development on R&D expenditures that exceed 0.92 percent of gross income. The B&O tax loophole, which will cost the state $97 million in the next four years, was set to expire and Chase's bill eliminates the end date (2015).
Oddly, as we noted up above, Chase is simultaneously sponsoring a bill to close a batch of corporate tax breaks to help fund the Basic Health Plan.
Even more jarring, she sent out press release today juxtaposing budget cuts with corporate tax breaks, highlighting $38 million in tech tax exemptions.
Talk about mixed messaging.
Asked about the contradiction, Sen. Chase's office said "many individual breaks are justified, but without an honest assessment of the effect of these breaks on the state budget, legislators are hamstrung in their ability to be fair and accountable stewards of taxpayer money."
Labor, typically big fans of Chase, was disappointed. "I’m confused," says Jonathan Rosenblum, assistant to the president at SEIU Healthcare 1199 NW, referring to Chase's clashing bills. "Does the majority party want to close tax loopholes in order to protect vital services, or extend tax loopholes? Where is the moral leadership here?"
This afternoon was a fateful one for the fight against the billions of dollars in tax exemptions legislators have sought to bring out into the open this session.
Rep. Eileen Cody's (D-34, West Seattle) office told PubliCola today that her bill to close some tax loopholes to fund the Basic Health Plan is unlikely to get a hearing in the ways and means committee, much less a vote.
The legislation would have closed a $50 million bank loophole on mortgage loans, as well as a tax break for cosmetic surgery, and used those funds to keep basic health up and running for the foreseeable future.
Rep. Bob Hasegawa's (D-11, Beacon Hill) legislation to require tax exemptions to count as budget expenditures in the governor's biennial budget received a hearing today. Only one person testified in favor of Hasegawa's legislation: Nick Federici, a lobbyist for social services, labor, and low-income folks.
Sen. Maralyn Chase (D-32, Shoreline) is sponsoring the corresponding bills in the senate. Which brings us to today's winner—and today's big irony.
Today's winner: Tech companies
Flaming lefty Chase has joined up with a handful of conservative Democrats to sponsor a bill that would extend a tax break for tech company investment in research and development on R&D expenditures that exceed 0.92 percent of gross income. The B&O tax loophole, which will cost the state $97 million in the next four years, was set to expire and Chase's bill eliminates the end date (2015).
Oddly, as we noted up above, Chase is simultaneously sponsoring a bill to close a batch of corporate tax breaks to help fund the Basic Health Plan.
Even more jarring, she sent out press release today juxtaposing budget cuts with corporate tax breaks, highlighting $38 million in tech tax exemptions.
Talk about mixed messaging.
Asked about the contradiction, Sen. Chase's office said "many individual breaks are justified, but without an honest assessment of the effect of these breaks on the state budget, legislators are hamstrung in their ability to be fair and accountable stewards of taxpayer money."
Labor, typically big fans of Chase, was disappointed. "I’m confused," says Jonathan Rosenblum, assistant to the president at SEIU Healthcare 1199 NW, referring to Chase's clashing bills. "Does the majority party want to close tax loopholes in order to protect vital services, or extend tax loopholes? Where is the moral leadership here?"
