Coffee capital eyes tax on 'designer drinks'
A ballot measure will test whether Seattlites will accept a 10-cent tax on coffee to fund early childhood education.
Wendy Lippmann, a yoga teacher with a measured Buddhist comportment on most issues, suddenly turns vehement. "It's a nonsequitur that makes no sense!" she says. Susan Balshor, a sculptor who ordinarily shuns politics, fulminates for three minutes. Finally, she concludes: "This must be unconstitutional."Skip to next paragraph
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Yet Jay Nombalais, a carpenter, shrugs it off like a man who has learned patience from years of trying to get miter joints to fit. "It's only a dime, for heaven's sake," he says.
Technically, Mr. Nombalais is correct. But here in the Land of Starbucks, 10 cents is clearly not "only a dime" when it comes to a possible tax on espresso - the unofficial nectar of the Northwest. An upcoming public vote on whether to levy a 10-cent tax on "designer coffee drinks" is producing a debate of caffeinated intensity in what is supposed to be an easygoing city.
The measure, on the Sept. 16 ballot, seeks to boost funding for prekindergarten programs with all those dimes, which proponents say will total $7 million annually.
It divisiveness is perhaps not surprising. After all, Initiative 77 asks residents of Seattle, one of America's premier middle-class cities, to choose seemingly between two middle-class totems: those beloved drinks with the beehive of whipped cream or early grounding for their kids in Puccini and 500-piece puzzles. This is not to mention the class issue that can come up as a subtext: The measure would only tax latte and other expensive Starbucks-type drinks, not tea, cocoa, or regular drip coffee.
"It should be the other way around," snaps Ms. Lippmann, who drinks a double short breve daily. "People should be penalized for drinking bad coffee, not espresso."
In one sense, the so-called latte tax - or, as proponents position it, the Early Learning and Care Initiative - is just one more creative or perhaps desperate attempt to find money for important programs in a rare moment of penury. Amid one of the worst budget crises in a quarter century, cities across the country are increasingly turning to what could be called designer taxes: specific levies imposed for specific programs.
Some communities, for instance, are increasing local taxes to help pay for libraries. Others are tailoring levies to bankroll local schools. In New York, one lawmaker proposed putting a tax on junk foods to pay for obesity prevention programs for kids.
But boosting the tax on coffee in Seattle is like putting a surcharge on lobster bisque in Boston or tofu in Los Angeles. It is testing Seattle's legendary liberalism - a gauge of just how much taxation locals are willing to endure for a seemingly good cause.
"We've been hit by cut after cut after cut by administrations at the federal level and the state level - who, by their actions, don't support children," says John Burbank, executive director of the Economic Opportunity Institute, a Northwest think tank dedicated to bolstering the middle class. "This comes at a time these same authorities are demanding better academic performance from kids." Mr. Burbank, who conceived of the initiative, says actions of both President Bush and Washington Gov. Gary Locke are making improved academic achievement "impossible," adding: "If you believe in kids, then a dime is very little to ask."