March 08, 2006
Syrup Taxes

The House just voted 84-13 to grant food service businesses a B&O tax credit for taxes paid on sales of carbonated beverage syrup.

The fact that syrup was specially taxed in the first place is just plain nuts.

Posted by Stefan Sharkansky at March 08, 2006 11:52 AM | Email This
Comments
1. Does this mean the price of my slurpee will go down?

Mmmmmmmm, slurpee.

Posted by: Palouse on March 8, 2006 11:59 AM
2. These were my comments on the syrup tax bill:

I think it is instructive to look at the stated intent of the syrup tax, which, as we all know, is defined in RCW Chapter 82.64, created in chapter 80 of the laws of 1991. May I read that intent statement, Mr. Speaker?

"The taxes imposed in this act are intended to raise revenue for the enforcement of the drug laws of the state. It is the policy of the state to actively combat the problem of drug abuse by aggressive enforcement of the state's drug laws and by extensive promotion of public education programs designed to increase public and consumer awareness of the state's drug problem and its enforcement measures."

Mr. Speaker, if I had been in the legislature then, I would have voted against this tax. Why? Because Public Safety -- law enforcement -- is job number one of government. Public safety should be funded first from general revenues, and not require a separate, dedicated tax.

Furthermore, taxes should be imposed for the purpose of raising revenue, not manipulating people's behavior. I strongly disagree with imposing taxes on products that are disfavored because of public health issues, just to try to discourage their use through discriminatory taxation.

I am disappointed today that we're not repealing the syrup tax entirely, but I am happy, as an interim baby step, to vote to offset it through this B&O tax credit. I urge you to vote Yes.

Posted by: Rep. Toby Nixon on March 8, 2006 12:30 PM
3. Toby--
Refreshing outlook.......priorities of government.
Also questioning the appropriateness of "social engineering" folks behavior.
The Far Left try to justify this tax by saying kids are too fat and it's because they drink too much pop. Maybe they do....but if government goes down that path, where do they stop?

I just read the other day that excess caffeine is causing huge heart problems for certain people. Do we tax Starbucks & other Coffee Folks more so people will drink less?? The Far Left may be reluctant to follow thru on this one....since they spend half their under-employed lives sitting in Starbucks dreaming up new tax schemes...and ways to make government bigger.

Toby, I admire your determination. Keep challenging existing taxation and the role of government. There are a lot of Republicans and real Democrats who appreciate your efforts.

Posted by: Mr. Cynical on March 8, 2006 12:57 PM
4. Toby:
Yours is like a voice in the wilderness! Keep it up, keep it loud. Thank you.

Posted by: katomar on March 8, 2006 01:15 PM
5. Toby- you will not be in Olympia for long, you make too much sense.

Posted by: Andy on March 8, 2006 01:18 PM
6. Toby,

That is the first question I ask door bellers on my step.

Will you (or your candidate) make public safety the number one budget item, funded before anything else?

Your post is refreshing, I find my little query stumps most of them.

Posted by: JCM on March 8, 2006 01:54 PM
7. they should just cut the service category B&O tax down in half, so it won't be over twice the level of any other business category in the state. SErvice companies are paying the freight in this state. Just check the B&O tax forms and see for yourself. It's a giant rip-off.

Posted by: Michele on March 8, 2006 07:26 PM
8. Great job, Mr. Nixon! Sensibility. And as for the B&O? I don't like it; Great example of a business disincentive; taxing one's efforts, (sales)--not one's actual profits; good for the state--bad for the entrepreneur;

Posted by: Jimmie-howya-doin on March 9, 2006 03:59 AM
9. The syrup tax isn't nuts. Nuts have their own tax.

Posted by: Steve B on March 9, 2006 07:53 AM
10. But service businesses don't collect sales tax. It is 1 1/2% versus 9%.

I talked to a car dealer and he reported they are taxed on sales, not profit. Because of the price of their product, a ton of money goes into taxes.

He said one of the issues is having to carry a big inventory and pay interest on it. Sometimes, when things aren't flying through the dealership, they get stuck with paying B&O on the sales even though during slow times there is no profit.

Posted by: swatter on March 9, 2006 11:02 AM
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