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Gregoire proposes new fuel tax to fund education

December 18, 2012 • Business


Gov. Chris Gregoire discusses her state budget proposal on Tuesday, Dec. 18, 2012, in Olympia, Wash. She says that any budget without new revenue would force the closure of parks, eliminate food assistance programs and cause additional cuts in education. (AP Photo/Rachel La Corte)

OLYMPIA, Wash. (AP) — Gov. Chris Gregoire proposed higher taxes on gas, soda, candy and gum Tuesday in order to avoid more government cuts and to help fund education in response to a court order.

In her final budget plan, Gregoire said a budget without new revenues would force the closure of state parks, eliminate food assistance programs and cause additional cuts in education.

The new wholesale tax on gasoline and diesel fuel — paid by fuel distributors but likely passed on to drivers — would eventually rise to 4.62 percent. The governor also wants to extend taxes on beer and business taxes paid by doctors, lawyers, accountants and others.

“We need revenue if we’re going to meet our constitutional and moral responsibility to fund education,” Gregoire said. The total revenue from the new tax and tax extensions would be about $1 billion for the two-year budget cycle that starts in July.

Gregoire noted that the country’s Login to read more

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