Sen. Keith Goehner/R-Dryden/Credit: Washington State Senate
OLYMPIA… On Tax Day, as Washingtonians paid their federal income taxes, Senate Democrats introduced a set of sweeping tax proposals totaling more than $12 billion, despite Senate Republicans presenting a balanced budget with no tax increases (SB 5810).
These proposed taxes continue to put us down the path of unsustainable spending. The state has experienced unanticipated increases in revenue collection. However, the majority budget proposal represents an unrealistic expansion of government, requiring additional revenue. These tax proposals will drive small businesses and families out of Washington, further declining Washington’s competitiveness and the companies that generate the bulk of our revenue.
The proposals were heard yesterday, April 16th, in the Senate Ways & Means Committee, and are scheduled for a committee vote tomorrow morning. The full Senate will take up the proposals as early as Saturday.
This package represents a dramatic shift in Washington tax policy, targeting everything from job creation, to innovation, to family savings.
I wanted to highlight a few of these proposals and give you my take on them.
On SB 5815 – Business Tax Increases
This bill doesn’t reward success — it penalizes it. The majority seems to want to punish you if you’re creating jobs or innovating in Washington. This will continue to drive economic development out of our state.
On SB 5814 – Sales Tax Increase
In one of the more creative proposals, the majority is trying to collect sales tax on certain businesses before they make the retail sale. This requires businesses to estimate their future sales to pay taxes now to help balance the state budget. This tax shift will cause budgeting issues in the future.
On SB 5813 – Capital Gains & Estate Tax Hikes
This will affect homeowners and renters alike and the increase goes against a long-standing voter approved initiative. When combined with the proposed rent control legislation, and continued limitation on property rights, we will keep pushing folks out of their homes and rentals.
On SB 5812 – Property Tax Increases
This will affect homeowners and renters alike. This increase goes against a voter approved initiative. Combine this with the proposed rent control legislation and continued limitation on property rights, we will keep pushing folks out of their homes and rentals.
For the last few years, the majority party has been incentivizing people to purchase electric vehicles, and mandated manufacturers to sell more EVs or buy credits. Now we’re punishing the behavior we encouraged. This tax is focused on one EV manufacturer and will be passed on to consumers, increasing the cost.
None of these proposals are necessary because we have sufficient revenue to support the essential functions of government without requiring tax increases. The $ave Washington Budget that Senate Republicans released over a month ago demonstrates that we do not need higher taxes. We need government accountability. In a time when families face challenges due to inflation and small businesses struggle to survive, our priority should be to provide relief and stability to the people of Washington.