booth gardner - Washington Secretary of State

Chapter 14: Taxing times
“The future of the state is a lot more important than who is governor,” Booth said
on the eve of the 1987 legislative session. If pushing higher taxes to achieve educational
reform cost him re-election, so be it. “I can live with that. There is life after politics.” It
wasn’t just rhetoric, his former aides emphasize. “Creating the nation’s best schools” was
his highest priority.
With charts, handouts and a platoon of aides, Booth outlined his plan to
simultaneously cut some taxes and raise others to make up the difference and still leave
$510 million for better schools and
universities in the 1987-89 biennium.
He wanted to reduce the sales tax,
trim the business-and-occupation tax,
provide tax breaks to small businesses
and make other adjustments that
would cost the state a total of $717
million. Concurrently, he had a plan to
generate $1.2 billion. Extending the
6 percent sales tax to “professional
services” – doctors, dentists,
accountants and lawyers – would
bring in $948 million. Extending it to
“consumer services” – barbers, beauty
parlors, health spas, cable TV and
other entertainment – would bring
in another $113 million. He’d raise an additional $70 million by taxing the fees charged by
financial institutions (with an exemption for residential mortgages), and $17 million more
by boldly going where no one who solicited the support of those who buy ink by the barrel
had ever dared to tread – a tax on newspaper sales and advertising.
The governor pointed out that the cities and counties stood to gain some $272
million by charging their own local sales taxes on services. All this would be a very tough
sell, he acknowledged – impossible, in fact, without bipartisan support. Republicans
promptly pronounced the plan dead on arrival. “We’d like him to spend at least half the
time he’s spent on increasing revenue on reforming spending,” said Bob Williams. A new
poll revealed that education was far and away the top issue for registered voters, but 61
percent disapproved of the governor’s plan to extend the sales tax to services.
School was still out on his plan to give teachers and other state employees 3
percent raises in September of the next two years. Booth said his budget accomplished
Booth takes stock of his administration’s accomplishments following
adjournment of the 1986 legislative session. Flanking the governor
are House Speaker Wayne Ehlers, left, and Senate Majority Leader
Ted Bottiger. Jerry Buck ©The News Tribune (Tacoma, WA) 1986
Reprinted with permission.
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