Washington Policy Watch

News and perspective on public policy issues affecting Washington's economy and quality of life, brought to you by the Economic Opportunity Institute.

Using cooperative model to remake Seattle Post-Intelligencer

Seattle P-I | I woke up this morning, made the coffee and walked out to get the P-I. As I began reading the headlines, I started thinking and moping about its presumed demise. Bad enough that it merged local with national news and business with sports. But in a month, we will most likely have lost it all together.

When my wife and I moved to Seattle in 1983, we rented an apartment in Wallingford that looked across Lake Union to the revolving globe of the P-I. Later on, we moved and so did the P-I, but we still depended on it and respected it for our news. Not that we agreed always with the P-I or the P-I agreed with us. Indeed, the P-I endorsed my opponent in my unsuccessful run for the Legislature last year.

But now we feel, as do thousands of P-I readers, like sitting ducks, just waiting for the next and final bullet. That’s how a lot of us feel in this great recession: helpless against the larger forces of economic catastrophe. We are unsure of our jobs, our mortgages, our credit card balances, our health coverage, our kids’ college tuition. Our economy is like an out-of-control gyroscope, swinging further and further out of balance. The demise of the P-I would be the symbolic coup-de-grace for this era of hopelessness and fear.

So what’s happened to us here in the Northwest, the home of public power, Puget Consumers Cooperative, Group Health Cooperative, Recreational Equipment and credit unions like Boeing Employees and the Washington State Employees Credit Union? Have we lost our mo-jo to figure out how to make things work? Are we really just going to passively accept the demise of our oldest and most knowledgeable source for real news, allowing the Hearst Corp. to shut it down without a fight?

We don’t have to take this.

Read the rest of this entry »

Filed under: state economy, , ,

Higher taxes proposed to fill budget shortfall. Plus: health care, unemployment and the federal budget deficit

Top Washington state legislator: Higher taxes are on table: Higher taxes should be part of the Legislature’s solution to the state’s $8 billion budget deficit, but officials must ensure the burden doesn’t fall too heavily on the poor, a top state lawmaker said Thursday. Senate Majority Leader Lisa Brown, D-Spokane, said the Legislature can’t rely on spending cuts alone to close a massive budget shortfall: That would only worsen the state’s economic woes by leading to more layoffs. | Seattle Times

Health-care budget: The rich would help the sick: President Barack Obama plans to begin paying for a health-care overhaul with $634 billion in new taxes on wealthy Americans and by changing the way the government pays for some health services. | Wenatchee World

Jobless Americans top 5 million mark: As bad as it is already, the economy keeps getting worse — and government figures Thursday provided more evidence that the downward spiral won’t end anytime soon. | Seattle P.I.

Obama faces an uphill battle on pledge to halve federal deficit: As President Obama presents his first budget today, the most daunting goal he has set may not be the ambitious proposals for economic recovery, healthcare reform or revamping the nation’s energy policy. Big as those challenges are, they may be child’s play compared with his promise to slash the federal budget deficit in half by the end of his first term. | L.A. Times

Obama proposes $3.6 trillion budget: President Barack Obama charted a dramatic new course for the nation Thursday with a bold but contentious budget plan proposing higher taxes for the wealthy and the first steps toward guaranteed health care for all – accompanied by an astonishing $1.75 trillion federal deficit that would be nearly four times the highest in history. | The Spokesman-Review

Oregon unemployment rate jumps to 9.9 percent: Every major sector cuts jobs as economy shows ‘continued weakness’. | Portland Tribune

Filed under: state economy, tax and budget, work and family, , , , , , , , , , , , ,

Microsoft, Yahoo back at the tax break trough

Last year, even with a budget surplus, public outrage nixed a tax break sought by Microsoft and Yahoo for server farms in Eastern Washington. (The WaPoWa post – and P-I column – on it is still current reading.)

This year we’ve got a hole in the state budget big enough to swallow 25% of the money needed just to maintain services like K-12 education, higher ed, prisons, child protective services, and health care for low income kids. And these technology giants have the nerve to come back and ask again – for even more money?

Last year’s request for a public handout was for half of their state sales tax  Microsoft and Yahoo would otherwise owe. This year they want an exemption from all sales tax – city, county, and state – and to include more stuff under the exemption.

The cost estimate for last year’s request was $43 million per biennium. We don’t have the estimate for this year’s bigger ask yet.

When Microsoft won a big tax break in 2004, the next week Steve Ballmer was in the news criticizing the state for not investing enough in education. Is the equation taxes=public services too complicated for him to understand?

A hearing on House Bill 2283 is scheduled for Friday in the House Finance Committee.

Filed under: state economy, tax and budget, , , , , , , , ,

Making health care accessible and affordable. Plus: the middle class, federal spending, and jobless claims

To Pay for Health Care, Obama Looks to Taxes on Affluent: President Obama will propose further tax increases on the affluent to help pay for his promise to make health care more accessible and affordable, calling for stricter limits on the benefits of itemized deductions taken by the wealthiest households, administration officials said Wednesday. | New York Times

Middle class task force to meet in Philadelphia: Green jobs, where are they and how to get them, will be the focus when President Barack Obama’s task force on middle-class working families formally begins its work on Friday in Philadelphia. | Seattle Times

Obama says administration to slash spending by $2T: President Barack Obama on Thursday stressed the need for shared sacrifice as he vowed to slash federal spending by $2 trillion, even as the administration initially invested large sums of money to revive the faltering economy. | Seattle Times

667K new jobless claims; rise more than expected: New jobless claims rose more than expected last week and the number of laid-off Americans continuing to receive unemployment benefits topped 5.1 million, fresh evidence the recession is increasingly forcing employers to shed jobs. | Seattle Times

Obama Creates Health Care Piggy Bank: Everybody leads with President Obama’s decision to put some money in a piggy bank. In the budget proposal that will be released today, Obama will announce that he wants to start his promised of America’s health care system by creating a $634 billion reserve fund over the next 10 years that will be paid for by increasing taxes on the wealthy and cutting government spending.| Slate

Filed under: state economy, tax and budget, work and family, , , , , , , , , , , ,

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