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Small Business Joins Legal Battle to Uphold State of Washington's Limit on Tax Increases
08/12/2008

CONTACT: Melissa Sharp, 202-314-2068

NFIB Small Business Legal Center urges Washington's Supreme Court to uphold Initiative 601

WASHINGTON, D.C. -- The National Federation of Independent Business Small Business Legal Center, the nation's leading legal advocate for small business, is urging the Washington Supreme Court to uphold state Initiative 601, which requires a supermajority vote in both chambers of the state legislature in order for the state to pass a tax increase.

Washington Senate Majority Leader Lisa Brown is suing Lt. Gov. Brad Owen for abiding by Initiative 601 and refusing to enforce a tax increase bill that did not receive the two-thirds vote required by Initiative 601. The case has reached the state's highest court, and the NFIB Small Business Legal Center has filed a brief in the case arguing that Initiative 601 should be upheld and enforced.

"NFIB is very concerned about this attempt to thwart the will of the people, which will make it easier for the state legislature to raise taxes," said Karen Harned, executive director, NFIB Small Business Legal Center. "Washington small business owners are already taxed at a very high level through, among other things, taxes on a business' monthly gross income, whether or not the business makes a profit for that month, and unemployment insurance taxes that are the second highest in the country. The last thing the state needs is to make it easier for lawmakers to increase taxes. NFIB strongly supports Initiative 601, which lawfully restrains the state legislature from passing tax increases, and we urge the state Supreme Court to uphold the Initiative as constitutional."

"The point of this lawsuit is to make it easier for the Legislature to raise taxes, period," said Troy Nichols, Washington state director for NFIB. "We're facing a $2.7 billion budget deficit next year, so we need these supermajority protections I-601 gives now more than ever. Washingtonians determined long ago that tax increases are such an imposition on their economic freedom that they should require bi-partisan support in the Legislature. We need the court to respect the will of the people and uphold I-601."
Oral arguments before the Washington Supreme Court are scheduled for Sept. 9.

To receive a copy of the friend-of-the-court brief filed by NFIB, please e-mail Melissa Sharp at Melissa.Sharp@nfib.org

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