Latte tax creamed; plan had been called daring, silly

Whether it was love of latte or a belief that it was the wrong way to pay for day care and preschool, Seattle's Initiative 77 was soundly defeated last night.

By more than 2-to-1, voters rejected a 10-cent-a-cup tax on espresso drinks, ending a local debate and, perhaps, national amusement over whether Seattle would put a surcharge on its beloved beverage.

John Burbank, whose Economic Opportunity Institute in Seattle came up with the idea of connecting coffee with kids, blamed the loss on the opponents' message that the tax would hurt small-business owners. He said the initiative succeeded in putting children's issues front and center.

"This raised the public commitment to early learning in Seattle," he said last night.

But Cathy Allen, a Seattle political strategist for opponents of I-77, said the tax just never made sense to voters, even in a city that rarely rejects funding for education.

"This was not an indictment of whether or not Seattle wants to take care of its kids," she said.

The proposal was called daring, nervy, even silly — and news organizations around the country and the world were unable to resist the story. Footage from a recent anti-I-77 campaign event, a mock Boston Tea Party on Green Lake, made for funny viewing everywhere.

"From Day One, I thought we don't want to be a laughingstock," Allen said.

Initiative 77 proponents acknowledged that a tax on espresso drinks might be quirky, but they said it would make day care and preschool more available, improve the quality of teachers and staff and replace some programs' lost state funding.

They predicted the tax could raise as much as $7 million annually and serve 5,000 children.

A study by Seattle City Council staff members projected revenue at $1.8 million to $3.5 million, but many said an accurate prediction was difficult.

Critics said it made no sense to tax a product unrelated to children or education and that the tax would be an unfair burden on cafe owners. Starbucks and other big coffee companies opposed the measure, as did most small cafes.

Though much attention was focused on how I-77 would help fund programs for poor children, the initiative was designed to help children of all income groups.

The initiative would set aside 20 percent of the revenue for subsidies for low-income children, and if $7 million were raised in tax revenues, Burbank said, more than 600 children would get off a waiting list for programs within two to three months.

Beth Kaiman: 206-464-2441 or bkaiman@seattletimes.com.