I-695; Claims vs. Facts

    Official Ballot Title:  Shall voter approval be required for any tax increase, license tab fees be $30 per year for motor vehicles, and existing vehicle taxes be repealed?

    Politicians Claim…

    The Facts Are…

    The government can’t afford I-695

    Washington is the 6th highest taxed state in the nation, we have a $1 billion tax surplus, and license tabs make up less than 2% of government spending.  Besides, the $500 million per year in "lost revenue" will be pumped right back into our state’s economy and cause a huge surge in sales tax and business tax revenue.

    I-695 makes vehicles subject to property taxes

    I-695 requires voter approval for tax increases – this would clearly be a new tax so taxpayers would have to agree.  Even the Washington Association of Counties (an opponent of I-695) admits it’ll never happen.

    I-695 will cause a state income tax

    Our state Constitution explicitly prohibits an income tax.  It is incredibly difficult in Washington to change the Constitution – it takes 2/3 of the State House, 2/3 of the State Senate, AND a vote of the people.  Only two times in our state history have the politicians tried and the last time, the voters voted it down in every county and every legislative district.  We ain’t ever going to have an income tax in Washington, with or without I-695.

    I-695 guts last year’s Referendum 49

    R-49 provided an embarrassingly small tax cut of $30 per car.  Voters were insulted by such a pitiful tax cut but it was better than nothing so they voted for it.  R-49 addressed the problem of outrageously expensive license tab fees – I-695 solves it.

    What will happen to all the government

    Every program will have to rejustify their funding – they’ll have programs funded by license tab fees? to make their case that they deserve continued funding, either from existing revenues, local government tax surpluses, or by pleading their case directly to the State Legislature for a chunk of the $1 billion tax surplus.  I-695 essentially mandates a performance audit on every one of these programs, something we’ve all wanted for a long time.

    I-695 only benefits the rich

    Get real, the rich are choosing between license tab fees and another round of golf, while working class folks are choosing between license tab fees and car insurance or health insurance or other essentials.  Bill Gates wasn’t getting signatures for I-695 at Costco – it was our senior citizens, working families, and struggling college kids that got 514,000 signatures for I-695.

    I-695 will cause hundreds of public votes on every tax & fee increase, including raising dog license fees

    Use your common sense.  If politicians gave voters that many choices, the voters would vote no on all of them.  No, with I-695, politicians are going to know that they’re only going to get a couple "bites at the apple" with taxpayers each year.  So they’re going to have to prioritize and put forward only the most essential tax increases.  Colorado has had this same provision in effect since 1990 and it has limited excessive taxation (they are the 39th highest taxed state – Washington is 6th).  Even former critics of Colorado’s initiative admit it has worked well.

    I-695 is not needed

    If politicians had one ounce of compassion for the average taxpayer, I-695 would not be necessary.  Politicians will NEVER limit excessive taxation – I-695 is our only chance.  Isn’t I-695 better than what we’ve got now?

    By making all taxes and fees subject to voter approval, we don’t need politicians

    It only seems that all politicians do is raise taxes.  They will still have to take the tough votes in favor of tax increases, but I-695 makes them more fiscally accountable for these decisions.  And don’t forget, they will continue to decide how our tax dollars are spent, but with I-695, they will be reminded that it’s OUR tax money they’re spending.

    Transportation problems will get worse

    Most states fund their entire transportation systems with their gas tax and our gas tax is one of the highest in the nation.  The problem with transportation is not lack of funds.

    I-695 will mean more vehicles

    Families that have two vehicles will go out and buy a third one?  Of course not.  But families will be more willing to upgrade their vehicles, meaning newer vehicles on the roads (which are more fuel efficient, safer, and cause less pollution).  Working class folks, not just rich people, should be able to afford a newer vehicle.

    I-695 hurts our economy

    Washington gets most of its’ tax revenue from consumer spending (sales taxes and business taxes).  What public policy change can we make to inspire more consumer spending?  I-695.  Families and small businesses will have hundreds (and many times thousands) of more dollars that they will spend on newer vehicles, new computers, better health insurance, and other family needs.  $500 million in "lost revenue" will get pumped right back into our state’s economy, bringing in an avalanche of sales tax and B&O tax revenue to state and local governments.

    We’ve cut $4 billion in taxes

    Over 80% of the tax breaks have gone to Big Business (as reported in the Tacoma News Tribune).  I-695 offers the first meaningful tax relief for the little guy since the voters got rid of the sales tax on food 20 years ago.

    18 wheelers will also pay $30 per year

    With I-695, heavy commercial trucks and trailers will continue to license themselves based on weight.  We repeal the motor vehicle excise tax but keep in place the weight tables for heavy vehicles.

    I-695 guts I-601

    I-695 strengthens and extends the protections in Initiative 601.  Passed in 1993, Initiative 601 caps state government spending, but only for the state’s General Fund budget.  It does not protect taxpayers from excessive spending in the off-budget accounts or the county budgets and city budgets.  I-695 limits excessive taxation at all levels of government, ensuring the taxpayer is protected.

    Vote "No" on I-695 and we’ll look at lowering vehicle tabs responsibly

    Politicians will NEVER limit excessive taxation – here’s our only chance.  Anything but an overwhelming "Yes" for I-695 will be seen by politicians as an endorsement of higher taxes.

    Isn’t I-695 better than what we’ve got now?

    Paid for by the "$30 License Tab" Initiative   ·
    PO Box 1641   ·   Mukilteo   ·   WA   ·   98275
    Ph: 425-493-8707  ·  FAX: 425-493-1027  ·
    www.lifetel.com/tabs  ·  email: tabs@lifetel.com

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