Gregoire and WA Dems enact Major Tax Increase on Soda, Beer, and Cigarettes

From Eric Dondero:

Washington State Democrats have gone after "sin" products once again. They've targetted convenience stores with a massive tax hike on products. Revenues will be raised by $780 million in the new budget signed by Democrat Governor Christine Gregoire.

From NewsMax:

Consumers will pay more for a basketful of convenience-store favorites: Soda, bottled water, major-brand beer, candy and cigarettes.

The tax on soda bottlers would add 2 cents to every 12-ounce container, but exempt bottlers under $10 million in volume. The higher beer tax adds 50 cents per gallon — a 28 cent-increase on a six-pack. Microbrews would be exempt, aimed at helping Washington state companies.

Out-of-state companies also were targeted for more revenue, either by recalculating how taxes are charged or shrinking certain exemptions in response to court rulings. A collection of smaller loopholes and other exemptions also were closed or downsized.

Republicans stood firmly against the tax hikes, calling for deeper cuts in spending across the board, including health care coverage and education. Continuing:

"Legislators must learn from history — you cannot tax and spend your way out of a recession, but you can dig the hole deeper with bad policies," said Sen. Janea Holmquist, R-Moses Lake.

Additionally, Tax Fighter and self-described "libertarian Republican" Tim Eyman (photo - right, bio and movie about Eyman), is planning another round of spending cuts initiatives.

Meanwhile, Libertarians in the State are furious with Gregoire and the Democrats. South Puget Sound Libertarian had some strong words for the Governor.

New taxes on bottled water, soda pop, cigarettes, beer and business. But the disgusting thing, in addition to the tax increase, is the governor’s reaction to proposed initiatives that would block the tax hikes and force the legislature to honor the voters’ passage of a 2/3 majority requirement for the legislature to pass tax increases. Here’s the governor:

But Gregoire told reporters in a post-session briefing that the tax increases are essential to sustaining the kind of Washington she’s willing to live in.

If Eyman’s measures get on the ballot and pass, “then you’ll see an all-cuts budget. I mean, that’s the choice,” Gregoire said. “And the consequences of that will be immediate and long-term to the state of Washington. And it is not a state of Washington that I want to be part of.”

here’s another idea. If the governor doesn’t like cutting bloated government, she can resign and leave town. Good riddance. We don’t need no steenkin’ extortionist to run state government.

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