Seattle Press on Line - Ten Cents for the Future?

Ten Cents for the Future?

By Abby Freedman

Aug 15, 2002 -- Children are the future, it is often said. But the question of who pays to develop that future remains unanswered. One group's attempt, with Initiative 77--or the 'espresso tax,' as it's been dubbed--has raised both applause and disapproval from local businesses.

The proposal, which has collected enough signatures to be approved for the November ballot, will levy a 10-cent tax on all espresso drinks. The money will go toward aiding daycare providers with at least 10 percent of kids from low-income families.

Drip coffee will not be taxed, according to the initiative.

"I think it's pretty ridiculous," said Oscar Castro, owner of Java Love Espresso. "If you're going to charge a tax on beverages, tax every beverage: alcohol, soda, juices. Make it general. Don't just target one section."

When reminded that alcohol is taxed heavily, Castro said espresso shops are also burdened with many taxes that are passed to consumers.

"Coffee drinks are already taxed, as well," Castro said. "Coffee shops are considered restaurants. I'm paying federal tax, state tax, lots of tax."

I-77 focuses on espresso drinks as these are considered luxury items. According to the initiative, those who purchase luxury items can afford the tax.

Renny Whetsell, a barista in the Rose Club Cafe, supported the initiative's intent, but expressed concern over how taxpayers are being forced to pay for daycares. She also predicted a dip in her tips, which help pay her rent and groceries, if the initiative is approved.

When a drink costs $3.15, Whetsell said she is often given $4 and allowed to keep the change. After the espresso tax, she would get ten cents less per cup of coffee.

"I think it (the espresso tax) is for a good cause," she said. "But it should be someone's choice to give that money (to daycares). It shouldn't be forced."

The Seattle City Chamber of Commerce earlier condemned the espresso tax. It said a relationship should exist between the item taxed and its intended beneficiary, which, in the case of the espresso tax and daycares, is non-existent. It also said the tax would be unfair to small cafes, which will hurt with any drop-off in coffee consumption.

But Belgu Assaw expressed confidence his coffeehouse, Detour Espresso, will not suffer. He said people will continue to buy coffee even with the extra 10 cents.

"It's just a dime added to a latte," Assaw said. "Sine '94, the price increases every year on lattes. It used to be $1.50, now it's $2 or $2.50. Still, people are buying them."

The director of the daycare Twinks Early Childhood Development Center, whom everyone calls Mama Joy, expressed support for the tax, but only if it is distributed to every daycare center equally. Under the current system, she has to apply for grants which are often disapproved, and it has left her frustrated.

"Whether everyone gets a penny or $200, just send everyone the same amount of money. That's the only way I'll support it," she said.

"I'm not angry (about losing grants) but it's ugly when you're taking care of kids for the future. And I'm tired of applying for a grant and them deciding someone else need the money more," she added. "If I say I need the money, I need the money."

Annete Jefferson-Brown, owner of We Are the World Daycare, also expressed support to the initiative. She, however, felt saddened by its necessity.

"I think it's a good ideal," Jefferson-Brown said. "But I think it's real unfortunate that it has to come to that point (of forcing espresso drinkers pay for more). But I know we have to get money from somewhere."

Reader Comments

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Ben Lukoff	Aug 20, 2002	Roosevelt, Seattle	proofreader
From the initiative text: "'Small Business' means any business entity...that is owned and operated independently from all other businesses, that has the purpose of making a profit, and which, together with any affiliated business, generates less than Fifty Thousand Dollars ($50,000) in annual gross receipts...the tax imposed by this section shall not apply to any Small Business as defined in this ordinance." Looks like there is a small business exception here, so it's not like they want to tax everyone down to the littlest espresso stands. Still doesn't mean I'm for I-77 (I think it's a bad idea & I'm voting NO) but thought I'd mention it.


David Johnson	Aug 24, 2003	Seattle	Biologist
Vote NO on I-77. Yes, a dime is really nothing and people can afford it. Nobody would argue with that. The problem is that this is NOT an applicable tax. And yes, I'm sure someone somewhere could site an non-applicable tax in this world (probably Seattle I'm sure), but taxes were meant to be applicable. You pay a gas tax to build and maintain infrastructure, tobacco tax to pay for smoker related health care, alcohol tax top pay for health care and treatment, etc.... With all this said though, I wouldn't put it past seattle to pass this initiative, because after all, there is one thing Seattlites like better than lattes, and that is more taxes. Approving this tax would set a dangerous precedent.


John Poole	Aug 26, 2003	Seattle	Network Support
Vote NO on I-77, or on any initiative that proposes to single out and tax one segment of the population. I'd vote for a one- or two-tenths percent increase in sales tax, which would raise more money without penalizing a single segment of the population for their choice of beverage. For the record, I drink drip, and I brew my own.