February 6, 2009

Opinion: Don't add new tax to pay for water rebate

Economic conditions are forcing nearly every family, nonprofit and business to cut costs and make due with less.

That is why the Greater Seattle Chamber of Commerce and the Greater University Chamber of Commerce are concerned about a proposal before the Seattle City Council. It would place a surcharge on water bills to pay a court-ordered rebate — plus the city's legal fees and other expenses — for fire hydrant costs that were incorrectly charged to water customers in Seattle.

Essentially the city would be funding a mandated rebate to water customers with one hand while taxing them to pay for the costs of the rebate (plus fees) with the other.

A water tax is an unavoidable tax. Restaurants must wash the dishes and people still drink the water. And it is a highly regressive tax that will hit small and struggling businesses and the working poor disproportionately hard.

Seattle already imposes the highest water and sewer rates in the nation. Laying on yet another tax places our city's competitiveness in question. It's also out of step with other governments, which are trying to stimulate their economies and not add to bottom line expenses for businesses and families.

City leaders must consider different approaches. Scrutinize every expense and look for efficiencies in the water department. Rigorously evaluate the scope of capital projects and how to extend the life of capital facilities. Delay projects in the pipeline.

Families and businesses across the city are making similar choices. It is time for the city to do the same.

George Allen is senior vice president, government relations for the Greater Seattle Chamber of Commerce. Teresa Lord Hugel is the executive director of the Greater University Chamber of Commerce.

The Daily Journal of Commerce welcomes your comments.

• E-mail: editor@djc.com
  
  

Previous columns:

• Opinion: How about intersecting tunnels?, 02-02-2009
• In 50 words: What is affordability and how can Seattle achieve it?, 01-20-2009
• Opinion: What do we mean by affordable housing?, 01-12-2009
• Letters to the Editor: Viaduct idea an innovative compromise, 01-05-2009
• Opinion: Interbay's time has come, 11-03-2008
• Opinion: Street life? What street life?, 10-29-2008
• Opinion: Incentive zoning: Good PR but bad public policy, 10-13-2008
• Letter to the Editor: Speculation drives up home prices, 10-06-2008