HOUSE BILL NO. 229 "An Act imposing a tax on employment; and providing for an effective date." Co-Chair Mulder stated that it would be appropriate for Representative Croft to add his name to the legislation and allow Representative Stevens to withdraw his name. Representative Croft agreed. Representative Croft provided members with proposed committee substitute, work draft 22-LS0842\L, 2/22/02 (copy on file). He explained that the committee substitute would provide the income tax recommended by the fiscal policy caucus, an alcohol tax at 10-cents a drink, a cruise ship head tax and a motor fuel tax. Representative Croft MOVED to AMENDED the proposed committee substitute by removing the cruise head tax portion of the bill. There being NO OBJECTION, it was so ordered. Co-Chair Mulder indicated that the original sponsor would like to remove their name from the legislation as amended. Representative Croft stated that he would takeover the sponsorship of the legislation in whatever manner was deemed appropriate. Representative Croft spoke in support of the legislation. He explained that the legislation as amended would provide a 4 percent of taxable income tax. The proposal is a compromise between a flat tax and a more progressive tax based on a portion of tax liability. A taxable income tax would allow deductions. The motor fuel tax portion of the bill would allow a mechanism to fund deferred maintenance. Representative Hudson requested that a spreadsheet be created to show the approximate amounts to be earned by the different elements. Representative Whitaker pointed out that a new fiscal note would be appropriate. Co-Chair Mulder explained that the intent would be to take action on the legislation on Monday after review. Representative Harris MOVED to AMEND on page 12, line 11: increase existing taxes on alcohol by 50 percent. Representative Croft OBJECTED. He observed that under the committee substitute the alcohol tax increase would be approximately .10 cents a drink. A fifty percent increase would only increase the tax by about a cent and a half per drink. He noted that the tax has not been increased for a long time and would not come close to addressing the needs of the state. Co-Chair Mulder clarified that there would be 50 percent increase over the current taxation in all three categories. Representative John Davies reiterated that the increase would be less than .02 cents a drink. Representative Croft stressed that most items have increased beyond 50 percent since 1960. The increase beginning in 2002 would not come near to the pre inflation cost. Representative Harris WITHDREW his motion to amend the alcohol tax to 50 percent. HB 229 was heard and HELD in Committee for further consideration.