Spokane7
50°
March 19, 2010 in City
Washington senators approve tax increases
Narrowly passed plan faces high hurdle in House
OLYMPIA — The Senate approved temporary jumps in state sales and business taxes, narrowly passing a tax plan that may not survive the weekend in the House.
Senate Democrats made some changes in the plan they passed during the regular session, which also was gutted in the House. Instead of a three-tenths of 1 percent increase in the sales tax for the next three years, they approved a two-tenths of 1 percent increase for that period.
They approved temporary increases to the business and occupation tax, but also increased the credit for small businesses with sales of less than $72,000.
They also amended the bill to give exemptions from the business tax increases to researchers, nonprofit hospitals and Realtors.
Democrats emphasized that the tax increase was the smallest part of their budget solution, which also includes federal funding and cuts of some $5 billion from the budget they would have carried forward from the last biennium.
Republicans argued those aren’t all real cuts, but reductions in anticipated increases, brought on by overspending in previous years.
Romney/Paul split weighing on county GOP 
ToddHogan on March 19 at 5:00 p.m.
Does this make sense to anyone outside of government?
So let’s tax Washington business MORE and drive them out of the state. That will really help the budget that is already upside down for 2010-2011.
The red ink pen needs to come out and severe cuts be made to reduce Wa government programs to align it with the revenue that is softer with this downturn. Because guess what folks?? It’s not going to be super robust for a few years.
CUT expenses.
west on March 19 at 5:11 p.m.
80 percent of all gov budgets are PEOPLE salaries, benefits…Oly is scared to death of the unions which control, run,state, city, county governments. I’m glad for this recession..hope it gets worse..only then will gov cut costs…
Loudin on March 19 at 5:13 p.m.
How many small businesses with sales of less than $72K employ more than the owner and perhaps 1 or 2 employees? So why are they getting a credit? With a statewide unemployment rate around 10%, wouldn’t it make more sense to provide such credits to small businesses who actually employ people other than the owner? Ridiculous.
And what’s with exemptions to researchers & realtors? They must have decent lobbyists…
As for the B&O tax: It’s non-business owning Democratic politicians in the Puget Sound area who are driving this…and as a result, driving small business owners out of business. Large- & medium-sized corporations can relocate to business-friendly states like Oregon, but small business owners are tied to their communities. That’s why irresponsible Seattle Democrats can vote such increases in the B&O tax through without worry of voter backlash.
You don’t give tax breaks during a war and you don’t raise taxes on businesses during a recession. Where did these politicians go to school? Evergreen State? Western Washington U.?
PhiltheBibliophil on March 19 at 5:42 p.m.
Hey, its Washington State Government! Nothing ever makes any sense! Most screwed up state in the Nation when it comes to Taxes! In this case, its the economy, Stupid!
Anne_Observer on March 19 at 5:54 p.m.
Quote: “… increased the credit for small businesses with sales of less than $72,000.”
SALES of $72k (that’s not profit, but sales) is a DAMN small business. For most kinds of businesses, that won’t even pay ONE person decently.
These people are out of touch with reality. An economic slump is not the time to increase taxes. Especially in Washington, one of the highest-taxed states in the nation.
Cut spending, Mr. and Mrs. legislator. Period. That is the only answer.
Shazamm on March 19 at 7:23 p.m.
Hey Legislature, here is an idea. Levy a tax on liberals, since they are the ones who want us to take care of everyone and their dog(s). Leave the rest of us alone…
CharlesBillford on March 19 at 9:11 p.m.
Let they whom are without deficit, cast the first tax increase.
I suggest a tax on tar and feathers because we a gonna be using a whole passle of it once these clowns come home to roost.
Parading Bleach Blond Brown through Hilyard would be a good start.