Seattle, WA -- In an apparent effort to further reduce manufacturing jobs in Washington state, some lawmakers are asking Governor Inslee to veto a bill designed to promote jobs by cutting taxes imposed by the state.  (See “Democrats urge Gov. Inslee to veto tax cut for manufacturers” by Jim Brunner, The Seattle Times, July 5, 2017.)

As The Seattle Times reports, “Twenty-three Democratic state representatives signed a public letter to Inslee asking him to veto the tax cuts contained in Senate Bill 5977.”  If the Governor signs the legislation, it would cut the state’s Business and Occupation tax on manufacturers by 40 percent over four years.

Lawmakers of both parties voted for the popular bill in the closing days of the legislative session, giving it bipartisan approval of 33-16 in the Senate and 88-10 in the House.

In an unusual development, 14 of the lawmakers who sent the veto-request letter to the Governor voted in favor of the jobs bill they are now seeking to kill.  Lawmakers who voted for the bill who now say they want it vetoed are: Representatives Cody, Fey, Jinkins, Fitzgibbon, Kloba, Peterson, Ryu, Sawyer, Slatter, Macri, Santos, Sells, Wylie and Gregerson.

The letter, dated July 3rd, provides no explanation for why most of the co-signers want to stop a bill they helped pass just three days earlier.

The B&O tax reduction for manufacturers was initiated by Governor Gary Locke in 2003 to promote jobs in Washington high-tech economy, but Locke limited the benefits to the aerospace sector.

The program has worked well and serves the public interest by promoting tens of thousands of good-paying jobs in the state.  Governor Inslee supports the program and in 2013 he extended the tax reductions to 2040.  The Department of Revenue estimates the extension that Inslee approved is bringing the state $21.3 billion in direct and indirect fiscal benefits.

Supporters of SB 5977 say they want to extend lower B&O tax rates on an equal basis to all manufacturers, putting these companies on the same footing as Boeing and other aerospace companies.

The job-promotion policy is also seen as a caring response to the surprising outcome of the 2016 election, which many observers saw as a reaction by working and middle-class voters to the loss of manufacturing jobs across the country.

Like many states, Washington has seen a steady erosion of family-wage blue collar jobs.  Lawmakers from booming high-tech hubs like Seattle are often seen as insensitive to the loss of good jobs in smaller communities around the state.  Backers of SB 5977 say they are seeking to remedy that unpopular impression. 

Governor Inslee says he will decide by tomorrow whether or not he intends to veto the manufacturing jobs bill.