OFM confirms it: $1 billion in tax increases have already cut the deficit in half

by | Dec 18, 2012

 Democrats and their special-interest-group-backers are whining about how Initiative 1185’s 2/3 vote requirement is preventing them from taking a “balanced approach” (code for raising taxes) to address their budget challenges (caused by 8 years of adopting totally unsustainable budgets).  But the truth is higher taxes are already part of the equation:  in 2010, after suspending I-960’s 2/3, Gregoire and the Democrats imposed $6.7 billion in higher taxes over the next 10 years. 

        How much tax revenue from those 2010 tax hikes will go toward the next budget (2013-2015)?  $1.049 billion.  That’s right, nearly a billion dollars.

       There’s been alot of wailing and gnashing of teeth over the upcoming deficit. Some peg the projected deficit at $900 million, others at $2 billion.  But regardless of the amount, it is $1 billion less than it otherwise would be if not for those 2010 tax increases.  

       With I-1185’s overwhelming victory, Olympia should be grateful for the billion dollar tax increase from 2010 that’ll lessen the 2013-2015 budget challenges.  As Democrat State Senator Jim Hargrove said on Friday:  “It’s pretty clear that the public is not interested in any more taxes”.