Huge Business Rift Over Proposed Gas Tax Hike

Date: October 09, 2013

OLYMPIA, Wash., Sept. 27, 2013—Nearly 90 percent of Washington small-business owners oppose a gas tax increase, with or without a reform package, according to results from a poll released today by Washington state’s largest small-business association. 

The survey also showed steadfast opposition to Gov. Jay Inslee’s suggestion that he may call a special session of the Legislature to consider additional transportation funding measures.

“Small-business owners aren’t fooled by the fig leaf of ‘reforms plus revenue,’ ” said Patrick Connor, Washington state director for the National Federation of Independent Business, America’s voice of small business, which has 8,250 members in the state.  “They’ve been down that road before – hollow promises of reforms that are never realized. Meanwhile they pay more at the pump and at the check-out stand.”

Gas taxes and weight fees, both being considered as part of a transportation revenue package, disproportionately affect trucking companies, ultimately increasing prices for consumers on a wide range of products that rely on freight trucks to get them to store shelves.

When asked under what circumstances Main Street might support a gas tax increase, a resounding 62 percent said “none whatsoever.”  A third said they would consider supporting such a proposal only if reforms were enacted first, and the Legislature later came back with a revenue proposal. More than half also said a transportation tax package should go to voters for final approval. Even among the sliver of entrepreneurs who endorsed a gas tax increase, a majority of supporters said the increase should be 5? or less.

“Small-business owners simply don’t trust the state Department of Transportation to wisely spend more of their hard-earned money,” said Connor. “They’re tired of cost overruns and shoddy results, whether they are off-ramps that don’t line up with the freeway, ferries that list, bridge pontoons that leak, or light rail add-ons that would block ships from moving up the Columbia, small-business owners simply don’t believe giving more money to a failed agency will make it faster or easier to get people to work or goods to market.”

These results are in stark contrast to calls from organized labor, some chambers of commerce, port districts and other local governments, who have stacked the audiences at listening sessions being held around the state by the senate Majority Coalition Caucus.

“It’s easy to be for higher taxes and more spending when it’s not your money,” Connor added.  “Main Street business owners rarely have the luxury of closing early or paying their employees to attend public hearings.  They know the value of a dollar – and they know when those dollars are being misspent.”

The special ballot of NFIB members in Washington was conducted this month and asked five questions:

Should the gas tax and other fees be increased to provide additional funding for major freight mobility, road maintenance and other transportation projects, including transit?
Yes 10 percent
No 88 percent
Undecided 2 percent

Should the Legislature pass a supplemental transportation package and send it to the ballot so voters can decide whether to approve the funding?
Yes 35 percent
No 56 percent
Undecided 9 percent

Under what circumstances would you support a gas tax increase?
None whatsoever, 62 percent
Reforms first, then increase the tax, 33 percent
With or without reforms, more transportation spending is needed, 2 percent
Reforms are not needed, more transportation spending is needed, 2 percent
Undecided 1 percent

If you support increasing the gas tax, by how much should it be raised?
10 cents per gallon or more, 21 percent
6-10 cents per gallon, 26 percent
5 cents per gallon or less, 53 percent

Should the governor call a special session of the Legislature before the end of the year to consider additional transportation funding and/or reform measures?
Yes 20 percent
No 69 percent
Undecided 11 percent

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For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.

National Federation of Independent Business/Washington
711 Capitol Way South, Suite 505
Olympia, WA 98501
www.nfib.com/Washington
Twitter: @NFIB_WA

 

Related Content: Small Business News | Washington

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