For Immediate Release CONTACT: Steve Breaux
Sept. 15, 2011 Public Interest Advocate
sbreaux@washpirg.org
253-592-3503 (cell)
WashPIRG says “Enough’s enough; time to include loopholes and subsidies in
‘all-cuts’ budgets”
Seattle – As state economists reveal a $1.4 billion shortfall in anticipated state revenues, the
Washington Public Interest Research Group (WashPIRG) is calling for lawmakers to include
the closure of wasteful tax loopholes in efforts to rebalance the state budget.
“The Legislature has tried an ‘all cuts’ approach to pass budgets that just barely pencil out,
and end up revisiting those budgets when revenues don’t meet expectations,” said Steve
Breaux, public interest advocate at WashPIRG. “Unfortunately, the Legislature doesn’t give
equal weight to the loss of revenue through special-interest tax loopholes, and we believe
that should be a top budget priority.”
The call for action by the Legislature comes on the same day that WashPIRG is releasing a
report – in conjunction with USPIRG and the National Tax Payers Union (NTU) – detailing their
recommendations to the bipartisan Congressional ‘Super Committee’ for $1 trillion in federal
deficit reduction over ten years.
State revenue forecast highlights need for action by Legislature
With the state revenue forecast down, the Legislature is faced with the prospect of
rebalancing a budget that WashPIRG and other groups feel wasn’t well crafted to begin with.
“In their most recent session, the Legislature looked like a carpenter who only knows how to
use one tool – a saw,” said Breaux, who advocated for WashPIRG on a variety of issues during
the 2011 Legislature. “What’s worse, they only seem to know how to use their saw to cut one
kind of lumber – programs that directly impact the quality of life in our state.”
WashPIRG has advocated for the closure of tax loopholes that it believes cost the state
necessary revenue, and thinks these should be ‘go to’ items to help balance the budget.
“The billions and billions in cuts haven’t done anything to help our ailing economy, and
today’s news highlights the fact the state’s budget problem is on the revenue side of the
ledger” said Breaux. “Washington families can’t afford to subsidize unfair and unaccountable
tax breaks for Wall Street banks and other special interests.”
Breaux believes there are several approaches available to the Legislature, including closing tax
loopholes through legislation or allowing the voters to do so via a referendum. He anticipates
participating in discussions to close specific loopholes when the Legislature, either during the
next regular session in January or during an earlier special session if one is called.
Unlikely allies release plan for Super Committee to cut $1 Trillion in federal spending
Meanwhile, WashPIRG and the National Tax Payers Union (NTU) today released a report
detailing $1 trillion in deficit reduction over ten years. The two groups, which represent
constituencies from across the political spectrum, agreed upon spending cuts and budget
reforms in an effort to provide a roadmap for how the bipartisan Congressional ‘Super
Committee’ can achieve its goals.
The report is an update of recommendations developed last year for the President’s fiscal
commission. The fiscal commission adopted 20 of 30 recommendations in the bipartisan
majority report.
This new report identifies 64 specific cuts to what both groups agreed was wasteful and
inefficient spending, adding up to $1 trillion in taxpayer savings over ten years.
“In an effort to address the deficit, too often we’ve forgotten to differentiate between the
good and the bad; between public priorities and special interest handouts,” said Breaux.
“These recommendations correct years of insider lobbying that has benefited narrow
interests allowing room either for investment in valued programs or deficit reduction.”
The 64 cuts include:
eliminating wasteful subsidies to large, profitable corporations
getting rid of unneeded programs and efficiency improvements to existing programs
reform of contracting and acquisition procedures
discontinuing low-priority or outdated weapons systems
U.S. PIRG and NTU will present the plan to the Super Committee which has until Thanksgiving
to propose $1.2-$1.5 trillion in deficit reduction for action in the full Congress.
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WashPIRG is the Washington Public Interest Research Group, a non-partisan, non-profit
organization dedicated to protecting consumers, encouraging fair sustainable economies,
and fostering responsive democratic government.
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