Initiative 1033 is a Freeze on Public Services

Eyman is dishonest about the actual impacts of I-1033 on this state and cities and counties. Eyman is in essence proposing repealing existing taxes; he is not allowing government to function as a representative democracy but wants to impose budgeting by referendum.

When the economy improves, sales tax revenues under the present system would go up. There is no increase in sales tax rates. Taxes are not being increased. More taxes at the same tax rate are being collected because of a more robust economy. We would have more revenue to reinvest in our cities and counties and state and restore some of the services lost due to the current recession.

But Eyman is saying anything above this year’s recession level of public spending is increasing taxes. This is false. There is an increase in tax revenue but it is not raising your tax rate. Eyman is pandering to people’s fears and misrepresenting our actual tax collection process.

He then says that by allowing for a slight adjustment for inflation and population he is allowing government to grow. This is also false. Public services per person are not growing; by adjusting for population, you have more people needing government services. And adjusting for inflation only means that you can buy this year’s services next year at their inflated price. Because a gallon of gasoline costs more for a fire truck next year and you adjust so you can pay the inflated price, you still only have purchased a gallon of gasoline.

Thus at it’s simplest I-1033 is a freeze in public services. But it is also reducing taxes by changing our current tax collection system and imposing an artificial limit on the amount that can be collected. Services are reduced because it is taking all money above this year’s recession level spending and saying it can only be used to cut property taxes.

Normally this increase in money from an improved economy would help funds schools and roads and parks and much more. But it would no longer be available under I-1033 without a public vote. This would institute a series of votes to budget by referendum, which is a costly and time wasting process. And Eyman knows it is more difficult to ask for this money once he has committed it to pay property taxes.

Eyman’s intent as always is to just reduce government and taxes without regard for that impact on the community. We’re not an overtaxed state compared to other states. The conservative Tax Foundation notes that we are in the bottom 1/3 of states in terms of state and local tax burden. We are 35th lowest (with 1 being the highest).

I-1033 isn’t needed and will severely impact state and local government’s ability to function efficiently and provide basic needed services. Vote No on this tax shift that mainly benefits rich property owners and locks us in a permanent recession.

Vote No on Initiative 1033.