Census pokes hole in major Eyman tax argument

BRAD SHANNON, THE OLYMPIAN

Originally published October 25

OLYMPIA -- New Census figures show that Washington's state and local tax ranking fell in 1999 to 20th in the nation.

The new Census data show Washington's tax burden is at its lowest since 1982, once motor vehicle taxes are factored out.

Taxpayers paid $111.25 in state or local taxes out of every $1,000 they earned, according to data released Wednesday by the state Department of Revenue. That compared to Washington's No. 17 ranking for its state and local tax burden a year earlier.

The new numbers did not count the car tax repeal that took effect in January 2000. Had the motor vehicle excise tax repeal been factored in a year earlier, Washington's ranking would have fallen to 32nd in 1999.

"What we're seeing is the full effect of the rollback of taxes that were increased in 1993" during the last economic downturn, said Mike Gowrylow, spokesman for the Department of Revenue. His agency released the Census data rankings Wednesday, shortly after becoming aware of them, he said.

I-747 impact

The new data arrive at a time when voters are being asked to consider Initiative 747, which would cap yearly increases of property taxes to 1 percent, unless voters approved more.

The state's lower tax ranking contradicts initiative sponsor Tim Eyman's claim that 45 other states are able to pay for education, criminal justice, transportation and other state or local programs for less than what those governments in Washington spend.

Eyman blamed the messenger Wednesday, suggesting the government's numbers can't be trusted.

"Obviously the timing calls into question everything they are saying. If this had been done prior to 747 making it to the ballot ... it would have at least an ounce of credibility," Eyman said.

Asked if he felt the federal government was also somehow orchestrating the release of the numbers, Eyman said: "It just doesn't pass the straight-face test. I'm saying things happen for a reason and opponents are doing everything they can to make the case that taxes aren't all that bad."

Eyman said the only statistic that matters is a No. 5 ranking assigned to Washington by the conservative Tax Foundation, based in Washington, D.C.

The group lists Washington as tied with Wyoming for having the fifth highest combined tax burden, including federal, state and local taxes.

Eyman said I-747 "is a debate over how much additional tax burden people can stand."

Opponents say I-747 will especially harm local jurisdictions such as fire departments, libraries and public hospital districts by not allowing their budgets to keep up with inflation.

Foundation rankings

Ironically, the Tax Foundation ranked Washington's state and local tax burden 17th highest for 2000. The tax foundation also listed Washington's local-government property tax burden at 34th and 37th among the states, depending on how it was calculated, while listing the state's share of the tax at No. 1 or No. 2.

Although Eyman says property taxes are skyrocketing, the same foundation's study showed that during 1987-97, average annual growth in property taxes was 2.8 percent for state taxes and 4.2 percent for local taxes in Washington state.

Gowrylow denied any political maneuvering in release of the new Census data. He said it was released the same way he has observed it being done over the past eight years.

"I don't want to get into a debate with Mr. Eyman, but there's been a lot of interest in these rankings by the media," he said. "In response to media inquiries, we felt it was our duty, as past practice has shown, to get this information out as soon as we get it."

Eyman was sponsor of I-695, which replaced the motor vehicle excise tax with a flat $30 tab fee. Courts threw the measure out last year, but state legislators then formally enacted the lower fee.

The polls

A new poll shows that tax-capping Initiative 747 has lost support but still is winning, with 47 percent polled saying they would vote for it; 35 percent are opposed, and 19 percent are undecided.

Those numbers, which came from The Elway Poll conducted Oct. 16-18, are down from September figures that had measured I-747 support at 55 percent with 30 percent opposed. Both times Seattle pollster Stuart Elway polled 400 registered voters, and the margin of error was 5 percent.

"It looks like a classic pattern of voters migrating from soft support to undecided and from undecided to opposed," Elway said, adding: "It still has a 12 point lead."

I-747 sponsor Tim Eyman said Elway's figures downplay the actual support. He said a poll done in August by Rasmussen Research of North Carolina showed I-747 with 78 percent support, a level of support he described as "phenomenal."

Two other measures are leading in Elway's latest poll:

- I-773, which would slap another 60 cents per pack tax on cigarettes, saw support slip to 59 percent with 36 percent opposed and 5 percent undecided.

- I-775, which would create new home-care standards and allow home-care workers to bargain for higher wages, saw support slip to 61 percent with 19 percent opposed and about 20 percent undecided.

On the web:

State Department of Revenue

Text of Initiative 747

The Olympian Copyright 2001

back to main Census 2000 index