Contrary to what opponents say,
Referendum 53 (R-53) does not increase taxes. If approved, Referendum
53 simply upholds the modest, bipartisan reform of unemployment
laws enacted by the State Legislature earlier this year (the Union
was a driving force in passing these revisions). The changes were
designed to address years of complaints by businesses burdened
with overcharges. This action was long overdue and imperative
to attracting and keeping businesses and jobs here in Washington
State. It has no impact on the taxes a citizen pays - only businesses.
Plain and simple, R-53 forces builders, developers, and all employers
to pay the unemployment costs of workers they layoff. It is fair
to ensure most employers don't have to pay higher taxes to subsidize
companies who layoff workers season after season. Companies that
provide full-time, year-round jobs will no longer pick up part
of the tab for construction firms that regularly layoff workers
during slow months.
Builders and developers are driving R-53 and want to mislead you.
The fact is this measure wouldn't even be on the ballot if the
builders and big-money developers weren't fighting to keep an
$800 million tax loophole in the law for their own benefit. That
loophole hurts more than 80 percent of Washington businesses -
especially thousands of small businesses and millions of workers
who depend on their success, which is why the reforms were enacted.
These reforms were also tied to the extended unemployment benefits
for our laid-off members, which is another reason why 751 pushed
so hard for these changes.
Again, R-53 merely approves the reforms enacted by the Legislature
and Governor Gary Locke earlier this year. The reforms provide
tax equity and fairness to the companies that have long been overcharged
for unemployment rates - primarily Boeing.
Approving R-53 will make Washington State more attractive to new
employers who provide full-time permanent jobs. Unemployment taxes
in Washington are high; R-53 reforms them.
Approving R-53 ensures that employers will pay adequate fees to
cover the unemployment insurance benefits of their own laid-off
workers.
With layoffs, higher unemployment and an economy struggling to
bring some reassurance to workers in Washington State, the health
of our unemployment insurance system is more important than ever.
That's why you should vote YES on R-53. The unfair burden on many
employers is just the type of problem the State needs to address
if it is going to remedy the serious disadvantages that face businesses
operating here.
Governor Gary Locke may have summed it up best, "This is
about making our business climate more competitive and closing
a loophole that benefits a small group of businesses at the expense
of the rest of them."