Initiative 732, the so-called “revenue neutral” carbon tax hit another snap this week. The initiative is currently under consideration in the state Legislature. The options state lawmakers have is to pass it as is and make it a law, ignore it and let it go to the ballot in November, or send it and an alternative plan both to the ballot.
Well, some I-732 supporters are now requesting state lawmakers consider the last option.
I-732 supporters claimed that the tax was “revenue neutral” , and in fact would produce $44 million in additional revenue. But, that’s not necessarily the case. Last month, nonpartisan legislative staff produced an analysis that determined the scheme would actually cost the state $675 million in tax cuts than in tax increases over four years. New estimates reveal that sum could be even higher. Via the Seattle Times,
“State budget analysts say the initiative would reduce state revenue by $915 million over four years, even as the state faces demands for more spending on public schools, mental-health treatment and other services. An earlier estimate by legislative staff had pegged the four-year budget hit at $675 million.”
Supporters dispute the accuracy of the report, but admit the initiative needs some work. They are asking lawmakers to make changes to their initiative.
Understandably, that’s not a very comforting admission. Certainly, with Democrats already adamantly opposed to the plan due to the fact that it is does not make state government bigger, I-732 backers have not done themselves any favors.
Democrat state Rep. Joe Fitzgibbon, chair of the House Environment Committee, told the Seattle Times, “If we put together a proposal that corrected some of the shortfalls in 732, I don’t know I could tell you that it could get out of the House.”
Republicans are not impressed either. GOP state Sen. Doug Ericksen, chair the Senate Energy, Environment and Telecommunications Committee, told the Seattle Times that “any alternative I-732 version he’d back would have to balance its carbon tax with rollbacks of other environmental regulations — including a prohibition on a carbon-emissions cap under development by Gov. Jay Inslee’s administration.” That’s not going to ever happen—not with Democrats controlling the state House and our green, green governor in office.
And remember, if lawmakers pass another version of I-732, voters would face both measures on the November ballot. I-732 will advance on its own if lawmakers do nothing.
As a side note, the Tom Steyer-funded Alliance for Jobs and Clean Energy has decided not to move forward with its separate, far more extreme initiative given the reality that it would compete with I-732. Of course, that doesn’t mean you can count the extreme “greenies” out in the future.
In the end, the latest shortcoming of I-732 reveals the almost innate uncertainty and instability associated with “green” measures.
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