Washington 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.
On SB 5811 – EV Credit Tax
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.
-- Sen. Keith Goehner (R-12LD)
