Morning Fizz

Morning Fizz: Tip Credit vs. Tip Deduction

Caffeinated News & Gossip featuring losses, compromises, and candidates.

By Morning Fizz April 24, 2014

Morning Fizz

1. Progressives certainly can't trot out their usual bad guys to explain their big loss on Prop. 1, this month's special election measure to prevent devastating Metro bus cuts that was trailing 54.51 to 45.49 after the second day of vote counting yesterday. (The pro camp officially conceded yesterday afternoon.)

Money? The pro side outraised the opposition $650,000 to $14,000.

Corporations? Amazon, Blake Nordstrom, CH2M Hill, Clise Properties, Nucor, Pemco, Richard Hedreen, the Mariners, Chris Hansen, Vulcan, and the Seattle Chamber of Commerce all supported the measure.

Chamber head Maud Daudon issued a losing statement yesterday:

This measure was our final opportunity to ensure that King County Metro service could continue uninterrupted this year. The service cuts that will take place in September will make it harder for people to get to work and increase time stuck in traffic for everyone. Having people stuck in traffic harms our economic future. That’s why the Chamber has fought hard for restoring transit service as well as for maintenance and preservation needs statewide. We will continue to advocate for state legislators to pass a comprehensive transportation funding solution.

2. Speaking of Daudon and the Chamber: The mayor's minimum wage task force—Daudon's a member— didn't reach a deal yesterday as labor and business (and small business and community groups) continued to split on issues such as what counts as a small business and what should be counted toward wages; commissions? tips? health care?

Image: Shutterstock

With the sides failing to bring a compromise solution forward yesterday—though they re-convened early this morning in their respective faction caucuses—the mayor is prepared to propose his own plan today.

Fizz hears the mayor is pushing a phase-out compromise on health care compensation and "tip credit" (or tip deduction, depending on how you look at it), an emotional and seemingly intractable issue that divides business (pro tip credit) and labor (anti tip deduction). The group is also still reportedly debating how to define "small businesses," with suggestions ranging from 2,500 (which would exclude all but the largest businesses) to 500 to 250 (which is how "small business" is defined in the city's paid sick leave law.) Finally, they're debating whether the proposal should include an annual adjustment upward to reflect inflation. 

3. Democrats are trying to take out an ultraconservative state house rep in the southeast suburbs of Seattle, Rep. Mark Hargrove (R-47, Covington) who voted against the DREAM Act and was one of only four votes against a ban on gay "conversion" therapy. (The DREAM Act passed this year. And while the ban on gay conversion therapy passed the house, it stalled in the Republican-controlled senate.)

Democrat Chris Barringer, chief of staff in King County Sheriff John Urquhart's office, will announce his candidacy today. Barringer, formerly a deputy prosecutor in the Bellevue City Attorneys Office, has raised $20,000 to cue up his announcement. 


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