Oh Sweet Wheat!

As the House Democrats roll out their economically-counterintuitive tax increase in the middle of a the great recession, it could be praised by advocates as a simple little tax. There is nothing much complicated or new about it. The proposed substitute bill for HB 3191 raises a lot of money, and from what I read none of it is temporary!

So the first issue is that, if and when our state’s economy climbs out of the recession, I guess we just get to keep paying these new taxes as a hangover kind of thing. Of course adding these taxes to our businesses and citizens will slow our climb out of the recession.

But they are simple taxes: B and O taxes are increased, B and O tax exemptions are repealed, sales taxes are added, liposuction taxes, candy, water, and a make-believe new long-arm’s-reach of a “nexus” definition. (If you are an out-of-state business and you think, hope, or wish for business in Washington, you soon will pay taxes on your “nexused” sales.)

It’s the candy tax that becomes complicated. Oh yes, the candy.  What is candy? The tax law tells us candy is any bar, drop or piece that contains a sweetener, sugar or otherwise except…and listen up, candy eaters…preparations that contain flour, and do not have to be refrigerated. Anything with real or make-believe sweeteners in bar, drop or piece form that has no flour and can sit on a shelf for ever due to its inordinate concentration of preservatives is TAX FREE. (What about gluten free stuff? Well, anyway…)

How nice. Just dabble a little flour and plenty of preservative into any chocolate bar and there you have it—tax-free candy. Flour, preservatives, wow, Twinkies are tax free!!!

You’ve gotta wonder if the flour thingy was a provision put forward by the Washington Wheat Growers Association.