Short on Votes, Deficit Panel Delays Decision

It looks like Washington is sticking with their usual methods of dealing with problems: just delay the vote! This method has been used so often, it’s almost a joke. Except, no one’s laughing. Between no clear call on the Bush tax cuts, estate tax changes, and now the deficit panel, all of Washington seems to be suffering from the same problem: procrastination in the face of opposition.

From Reuters.com:

A presidential panel on balancing the U.S. budget on Wednesday revised its fiscal austerity plan with deeper spending cuts and a more flexible tax code overhaul, hoping to draw broader political support.

The 18-member commission, established in February by President Barack Obama, discussed its revised plan at a public meeting on Capitol Hill. The panel is due to vote on it on Friday, two days later than originally scheduled.

The plan envisages reducing the budget deficit to 2.3 percent of gross domestic product by 2015, from 8.9 percent in the last fiscal year as the United States, along with other major powers, struggles to right its economy after the world financial crisis and deep recession.

Republican Senator Judd Gregg and Democratic Senator Kent Conrad, both veterans of Washington's budget wars, voiced support for the plan at the commission meeting.

"I am prepared to support this plan and support it strongly," said Conrad, who chairs the Senate Budget Committee.

Washington Pushes for Free Credit Scores

As part of the huge Wall Street reform bill, yesterday the Senate passed an amendment that would give Americans having trouble securing credit or a job free credit scores. These scores are used as a rating system for all kinds of important financial decisions such as qualifying for a home mortgage or a small business loan. As this CNN Money article explains, the measure would expand an existing law that gave consumers the right to one free credit report every year from each of the top three consumer reporting agencies -- Equifax, Experian, and TransUnion.

The credit score, however, has not been made available for free. It is a numerical representation of the information in a consumer's credit report, which covers a consumer's entire credit history -- all debts, payment habits, and jobs held. The credit score is widely used as a shortcut by lenders, so monitoring it is crucial.

But options for getting a credit score have been limited to many "for-fee" sites. Some have lured consumers in by offering a "free" score in return for signing up to a credit monitoring service that could cost $14.95 a month or more, if consumers don't opt out before the end of the trial period.

The amendment "dramatically increases the number of people getting this critical piece of information," said Jennifer Talhelm, a spokeswoman for Sen. Mark Udall, D-Colo., who is sponsoring the effort.

Candy Tax Takes Effect June 1 In Washington

Some kids in Washington may be asking for a raise on their allowance next month, because effective June 1^st a state sales tax will be levied on all gum, and most candies. There are nearly 3,000 sweet products on the states list to be taxed, and only 263 candies that are not.

As this article from SeattlePI.com explains, the products that are included in the list versus those that will not be taxed has already created confusion for local residents.

For example, Three Musketeers will be taxed but Milky Way will not.

Starburst, Gummi Bears and M&Ms? Yes. Nestle's Crunch and Twizzlers? No.

How will you and retailers know which is which?

The state Department of Revenue has posted a list online of nearly 3,000 items that will be subject to tax ranging from coffee flavored hard candies to Wrigley's Winterfresh chewing gum. You'll find another 263 items that are not.

What's the difference? Basically, flour. If the candy you like is prepared with flour it will not be subject to sales tax.

Candy subject to the tax can be made with "sugar, honey, or other natural or artificial sweeteners combined with chocolate, fruits, nuts, or other ingredients or flavorings and formed into bars, drops, or pieces," according to information from the Department of Revenue.

Washington Lawmakers OK $1-Per-Pack Cigarette Tax Hike

From BusinessWeek.com:

The Washington Legislature is adding $1 to the price of a pack of cigarettes.

The House and Senate both passed a higher tobacco tax on Monday night, as lawmakers worked to wrap up their special legislative session.

It's part of the Legislature's plan to raise close to $800 million in revenue for the state budget. The bill now goes to Gov. Chris Gregoire for final approval.

Starting on May 1, the tax of a pack of cigarettes increases to slightly more than $3. Taxes also will be raised on other products, such as cigars and chewing tobacco.

Democrats said the measure would raise money and discourage smoking, while Republicans said it could just drive tobacco purchases to other states or online.

Wash. Gov Oks Tax Cut For Newspapers

From the Seattle Times.com:

Gov. Chris Gregoire has approved a tax break for the state's troubled newspaper industry.

The new law gives newspaper printers and publishers a 40 percent cut in the state's main business tax. The discounted rate mirrors breaks given in years past to the Boeing Co. and the timber industry.

Newspapers across the country have resorted to layoffs and other cost-cutting moves to deal with a wounded business model and a recession-fueled drop in advertising.

The Seattle Post-Intelligencer printed its final edition earlier this year and was converted to an Internet-only publication with a much-reduced staff.

Most States Not Raising Gas Taxes

According to Forbes.com only seven states raised their gas tax rates over the past year. With Washington having the highest increase with an addition 2-cent tax. While Iowa and Nebraska both saw their gas tax rates drop by fractions of a penny. However, most states haven't raised gas taxes in the past year.