Letters to the Editor

BLOATED BARONS

Veteran reporter Rick Anderson is at it again, and we the common citizenry should all be grateful ["$64 Billion Falls Through the Tax Cracks," Feb. 18]. His piece on the erosion of Washington's tax base was a journalistic tour de force that should be required reading in every civics, political science, and economics class in this state. By feeding all manner of tax breaks and "incentives" to the gluttonous hogs at the corporate trough, our shrinking public coffers become the responsibility of Joe and Susie Six-Pack. And at a time when myriad public services are trimmed or eliminated altogether, working people face the additional indignity of a deteriorating job market. As we are learning, and as Anderson points out, a lot of jobs don't exactly disappear—they just get outsourced to India or Mexico, where workers do the same job for a fraction of the wage once paid the now-unemployed American. The bloated robber barons and their dissembling political allies in the fraudulent Bush administration have the gall to assure us that this does us all a great deal of good. Do they really think Americans are that stupid?

Joe Martin

Seattle

Rick Anderson's report on Olympia tax giveaways to Boeing—and just about anyone else who asks—was excellent ["$64 Billion Falls Through the Tax Cracks," Feb. 18]. But we're just one little cog in the military-industrial-congressional juggernaut here in Washington state. Elsewhere, the Lockheed Martins and Northrop Grummans and many others also are gorging at the taxpayer tit, with Halliburton, of course, the ultimate fusion of government and bald-faced, buccaneering free enterprise.

The scariest part was trade-policy analyst Maria Cain's conclusion: "Unfortunately, I don't think the public has a clue about how we're getting ripped off."

Frank Chesley

Seattle

Thanks for Rick Anderson's article on the plethora of tax breaks for select Washington businesses ["$64 Billion Falls Through the Tax Cracks," Feb. 18]. I'm glad someone's addressed this issue head-on. Anderson made reference to the fact that the state's B&O tax structure hits the startups and low-margin businesses hardest. As a self-employed person in a service business, I feel particularly resentful of the tax breaks for large corporations. Although there's the small business tax credit to take advantage of, it's reduced to zip as gross income inches toward $50,000. You could have a net loss, but it doesn't matter to the Department of Revenue. If you consider the cost of doing business and the fact that we pay both sides of the federal self-employment tax, pay the highest rates for health insurance, and don't have paid sick leave, etc., it becomes obvious that $50,000 in self- employment revenue is not a lot of money.

The self-employed are shouldering way more than their fair share, while Boeing and the host of other industries Anderson cited get free passes because they "create jobs." ARRGH!

Mary Ann Kae

Seattle

Rick Anderson wrote a great piece on exemptions ["$64 Billion Falls Through the Tax Cracks," Feb. 18]. I have been advocating for review for some years now. Exemptions review has been a formalized Assessor Association priority for over three years. Our bills have all failed to make it. Also, as the Assessor Association member of the Gates Commission Advisory Group, I lobbied hard to get exemptions review into their report. I very much appreciate Anderson's attention and great article. I have had quite a few ugly fights on this issue. In 2002, a new record for property tax exemption proposals was set (38), replaced with a new record in 2003 (39 considered). I am in my eighth year as chair of the Assessors Legislative Committee, and in the years 1997-2003, there were 878 different property tax system bills introduced, many of them tax breaks, few giving relief from the extra burden passed on to homeowners from exemptions and their automatic tax shifts. This year it's déjà vu, but not as many in a short session. It is not surprising to me how initiatives tap into the anger, frustration, and alienation of the citizenry when it comes to property taxes. Tim Eyman's initiative suggests it's all the fault of local governments. He is looking in the wrong direction and is confusing cause and effect. He lets the state off the hook. Too bad.

Scott Noble

King County Assessor

Thanks for Knute Berger's column summarizing the liberal's dilemma on state taxes [Mossback, "Is Eyman Right?" Feb. 18] and for the cover article detailing all of the questionable tax breaks that contribute to the problem ["$64 Billion Falls Through the Tax Cracks"]. Fortunately, the solution seems obvious. Tim Eyman is wrong, but if we can't beat him, why not learn from him? How about sponsoring an initiative to repeal some of those exemptions?

Jonathan Brown

Seattle

"Is Eyman Right?" [Mossback, Feb. 18]: Well, noooo, although Knute Berger argues in his column that he might be. I understand the frustration. Yes, it is galling that our state government throws ever more tax breaks and other favors at big business. But guess what: The real problem here and all over the country is that the mega-businesses have so much power that they can shake down state and local governments at will. Starving public services is not going to shame these guys into paying their share, nor will it do much good for the rest of us.