Expert says more taxes on state’s businesses could lead to revolt

TULALIP — Gary Chandler represents the Association of Washington Businesses so naturally he wouldn't want the state legislature to pass more taxes on them. But a revolt?

TULALIP — Gary Chandler represents the Association of Washington Businesses so naturally he wouldn’t want the state legislature to pass more taxes on them.

But a revolt?

“If we place even more burden on our businesses, that’s what will lead them not to expand or to leave our state,” Chandler said. “Our sales taxes are almost at double-digits now, so if we raise those further, we’re looking at a possible public revolt.”

Chandler, vice president of government affairs for the AWB, reported to the Greater Marysville Tulalip Chamber of Commerce Feb. 27 that 54 percent of Washington’s tax revenue comes from its businesses, compared with 45 percent in Oregon and 38 percent in Idaho. He recommended searching for greater efficiencies within government before seeking revenue elsewhere.

Chandler predicted that the balance of power in both houses of the legislature will encourage cooperation.

“If government is going to be divided, I want it to be closely divided,” Chandler said. “That way, they’re forced to sit down and work together, because they know they won’t be able to pass a budget or adjust taxes without each other’s help.”

Chandler cited Initiative 1351 and the McCleary vs. Washington Supreme Court case as challenges to the budget. Fully funding K-12 public education, as per McCleary, would cost about $1.2 billion, while I-1351’s reduction of class sizes, by hiring more school staff, would cost $2 billion this biennium alone.

“We like to vote for things we can’t necessarily afford,” said Chandler, who asserted that the state would not be able to raise enough taxes to make up for a nearly $4 billion shortfall.

Without generating additional revenue, Chandler noted that the state would need to identify potential cost savings.

“Education can’t be cut, and he (Gov. Jay Inslee) just started re-funding higher ed, so do you really want to defund it again?” Chandler asked. “The only way to save money in the Department of Corrections is by closing prisons, and human services have already been cut to the point that it’s been accused of not funding mental health properly.”

Chandler presented a similarly mixed message on the environment. At the same time that he expressed concern over climate change yielding relatively low levels of snowpack, which farmers rely on, Chandler touted Washington’s status as the fifth-cleanest state in America, thanks to its ability to rely on hydroelectric and wind power.

“We’ve been working for years to get a transportation package,” Chandler said of plans to increase gas prices by 11.7 cents per gallon. “I don’t want the gas tax to go up, but we need an increase for our roads, and to keep sales tax off certain projects. When I drive from Seattle to Olympia, I can see exposed rebar. If we get behind on transportation maintenance, it’s going to cost a lot more.”

Chandler expressed grave reservations over raising the minimum wage to $12, which Seattle has already done, and which the state House approved March 3. If a minimum wage increase makes it to the 2016 ballot, Chandler has little doubt it will pass.

“What happens to teenagers with no job skills?” Chandler asked. “In all likelihood, they won’t get hired. We need to ask which people we’re leaving behind.”

Chandler issued an equally severe warning about retirement preparation.

“Nobody’s planning for their future,” Chandler said. “You have all these people retiring on Social Security, but Social Security was meant to supplement your retirement, not to be your retirement.”

Chandler said that one out of every three Americans are likely to succumb to Alzheimer’s. Chandler’s mother is coping with it, and he urged everyone to start saving for their later years as soon as possible.

“I’m concerned about government taking over what should be left to private industry and families,” Chandler said.