Olympia this week

Democrats pass state capital gains income tax out of committee (KING5)

Senate Democrats passed a state capital gains income tax proposal out of the Ways and Means Committee, taking another step toward implementing a statewide income tax.

Democrats’ plan implements a 7% tax on profits on stocks, bonds, and personal property over $250,000 or more (for couples). They cite exemptions for profits made in the sales of real estate, retirement accounts, and family-owned small businesses as justification for their tax.

King 5 News featured Republican State Senator Mark Schoesler to explain why the tax is bad for Washingtonian. Schoesler said, “Does anyone really believe that [the income tax] will stay at that level, that there won’t be fewer exemptions or a higher rate in the future.”

Schoesler also noted that the tax is a form of an income tax and therefore unconstitutional in Washington State.  But the Senate Democrats don't seem to care.

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The state legislature is closer than ever to passing an income tax in Washington state this year. Emails collected through public records make it clear this income tax on capital gains is designed as a "starter tax" with more income taxes to come that will impact every citizen.  

It's a volatile tax that will destroy Washington's "no income tax advantage" for attracting new businesses, high-tech start-ups and the jobs that come with them.

While advocates claim they are inspired to enact income taxes because of the burden on low income taxpayers, there is NO consideration of a sales tax or other cuts that could reduce that burden without destroying Washington's competitive advantage.

Sign Washington Policy Center’s No Income Tax for WA State petition and have your voice heard to KEEP WASHINGTON INCOME TAX FREE!

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Senate Republicans offer solutions via budget plan (NPR)

State House and Senate Republicans’ budget plans revealed what Washington’s budget would look like if Republicans controlled Olympia. Both budget plans push against Democrats’ proposals of more taxes, and establishes a more responsible spending agenda.

Importantly, Republicans’ budget plan also sets itself apart from Democrats’ proposal by its priorities. Senate Republicans’ budget prioritizes what matters most to Washingtonians – funding and reopening our schools.

The budget requires school districts that meet health metrics to reopen. To help boost much needed job growth,

Republicans’ budget also eliminates the state’s business and occupation (B&O) tax on manufacturing. Over the past two decades, the manufacturing sector lost an estimated 70,000 jobs.

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State Senate overwhelmingly approves GOP bill to help small schools (SRC)

In a 48-1 vote, the Senate overwhelmingly approved Republican State Senator Jim Honeyford’s measure to help school districts serving low-income communities by providing flexibility in financing their facilities.

If passed by the House, the bill would allow school districts in small, rural, and low-income communities to “create partnerships and limited liability companies, and enter into leases, loans, and other agreements with public and private entities, for the purpose of utilizing certain federal tax credit programs to finance school facilities.”

Honeyford explained, “It gives these schools the funding options they need to help address the concerns of individual communities, including those facing incredible wealth disparities.”

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Democrats kill all emergency reform bills (Washington Policy Center)

Washington Democrats made it clear that they have no interest in protecting the balance of power in state government.

They don’t even have an interest in debating the need for greater check and balances.

Democrats in the state House and Senate killed all bills proposed to reign in the Governor’s emergency powers – without even a floor debate.

As the Washington Policy Center’s Jason Mercier points out, all this occurred while Governor Jay Inslee admits he “currently has no Phase 3 or Phase 4 plans and one region was initially wrongly held behind from Phase 2 due to data errors.”

To be clear, there are no future reopening plans and the chance for additional data errors. Yet Democrats are okay with allowing the Governor to plow ahead to the detriment of hardworking Washington families across the state.