Missed Opportunity in Washington State

September 12, 2005

In the midst of $3-per-gallon gas resulting in sticker shock at the pump, legislators in Washington state last week missed a golden opportunity to provide some relief.

Lawmakers failed to enact a proposal that would have repealed the 31-cent tax for three months. According to a report, the $270 million loss in revenue would have been covered by budget reserves. But Democrats were reported to have dismissed the idea, deciding against any relief.

Gov. Christine Gregoire reportedly said the proposal was not "thought through" and that it would strain the "ability to cover basis needs in education, health care and other vital services to people in Washington."

One of the "basic needs" the people in Washington state, and the rest of the nation, rely on is a functioning economy, one that is not buried in a recession. The price of gas is something consumers are reminded of every time they drive past a gas station. If the high price of gas causes a cutback in spending, especially during the holiday season just a few months away, and the economy suffers as a result, perhaps the lawmakers will rethink their position.

If other states considering such a tax rollback fail to act and we find ourselves in a recession at the start of 2006, last week's decision may be viewed as a lost opportunity.

By Glenn J. Kalinoski, Executive Editor, Customer Inter@ction Solutions