12 King County mayors pushing back on proposals to hike taxes on large WA Businesses
A coalition of 12 King County mayors is pushing back on two state budget proposals that call for raising taxes on large businesses in Washington.
Washington is currently facing a projected multibillion-dollar budget shortfall.
They argue that these proposals could push businesses out of Washington, taking jobs away from the region.
'These companies have choices about where they can do their business,' said Auburn Mayor Nancy Backus. 'These taxes will make attracting jobs, great jobs much harder.'
Supporters of the proposals argue the budget shortfall won't close itself, and push back on the idea that businesses will leave Washington because of tax changes. They argue the proposals are necessary to provide Washingtonians with the same level of services they rely on.
The group opposing the measures is focused specifically on two: one that would implement a surcharge on large businesses through Washington's Business and Occupation tax, and one that would implement a payroll tax similar to Seattle's 'JumpStart' tax.
That proposal, issued by Democrats in the state senate, proposes removing the cap on employer payroll taxes, placing a 5% tax on large employers 'on the amount of payroll expenses above the Social Security threshold — currently $176,100 per year.' Senate Democrats say this would be limited to companies with $7 million or more.
The proposal is similar to the city of Seattle's 'JumpStart' tax and includes a full credit for businesses already paying that tax.
Senate Democrats say it would raise about $2.3 billion per year and help fund public schools, health care, as well as other programs for residents.
Critics say Seattle's 'JumpStart' tax has pushed businesses to find operating locations elsewhere, pointing to Amazon's move to relocate some of its employees to Bellevue.
The other proposal, from Democrats in Washington's House, calls for a tax surcharge on businesses with taxable income over $250 million and increase to the surcharge on specified financial institutions with annual net income of $1 billion or more from 1.2% to 1.9%.
House democrats say these surcharges will prevent harmful cuts to education, public safety and allow lawmakers to continue investing in critical public services.
'We're only going to be able to help both local governments, local school districts and communities pay for things that we know are important to Washington's safety and health and business climate, if we can pay the bills,' said Washington House Majority Leader Rep. Joe Fitzgibbon.
Critics of these proposals include the mayors of Auburn, Bellevue, Black Diamond, Covington, Carnation, Enumclaw, Federal Way, Issaquah, Kirkland, Normandy Park, Redmond, and Renton.
In a letter to several Washington lawmakers, they voiced concern that these policies could 'destabilize' Washington's economy and 'have detrimental effects on our region's economic competitiveness, job market and overall fiscal health.'
'We fear these proposals discourage the kind of growth that empowers our workforce and local economies,' said Renton Mayor Armando Pavone.
Several spoke of their concern about a trickle-down effect if large corporations flee the state, noting in the letter that corporate jobs don't exist in a vacuum.
'The coffee shops in my community, the doctors, the dentists, the shops, the bakeries, all of those things rely on the tech industry,' said Redmond Mayor Angela Birney.
Rep. Fitzgibbon pushed back on the idea that tech jobs would leave Washington if these proposals go through, noting that none of these proposals are in final form and that lawmakers are working with employers to find a solution that works for everyone.
'We are sensitive to making sure that we maintain a competitive business climate,' he said.
KIRO 7 asked several of the mayors voicing opposition if they had any alternative suggestions to filling the budget gap.
Auburn Mayor Nancy Backus did not offer any additional specific ideas. She said at this point, the coalition is focused on its opposition to this measure, but wants to work with the legislature to problem solve.
You can read the full letter in opposition to these proposals here.
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Of the 2 million Latinos in New Jersey, more than 375,000 are Dominican, making up the second largest Hispanic group in New Jersey, after Puerto Ricans, a group where Trump also increased his support from 31% to 39%, the survey showed. But sometimes candidates overthink such targeted appeals. 'The November election results in parts of New Jersey should serve as a big warning sign that Democrats need to think about how they're communicating with some of these voters,' Matos said. Sherrill's campaign manager acknowledged in a memo to supporters last month that 'there is a real risk of a Republican winning in November." New Jersey tilts Democratic in presidential and Senate elections, but Republicans have won the governorship in recent decades. Focusing on the economy Strategists, organizers, union leaders and some candidates agree that what they are hearing from Latinos is consistent with the concerns of other working class voters. Ana Maria Hill, of Colombian and Mexican descent, is the New Jersey state director of the Service Employees International Union Local 32BJ, where half of the members are Hispanic. Hill says raising the minimum wage and imposing new regulations to cap rent increases are popular among those she has been calling to support Newark Mayor Baraka. She says Democrats lost ground by not acknowledging real-world struggles that hit Latinos hard after inflation spiked following the pandemic. 'I think where we lost voters last year was when workers asked 'What's going on with the economy?' We said 'the economy is great.' And it could be true, but it's also true that eggs cost $10, right? It's also true that a gallon of milk costs $6.' Taking that lesson to heart, Gottheimer held a press conference at a Latino supermarket in Elizabeth, a vibrant Latino hub south of Newark, against a backdrop of bottles of a corn oil used in many Hispanic kitchens. Sherrill headed to a Colombian restaurant, also in Elizabeth, on Saturday for a 'Get Out the Vote' rally. One of her advisers, Patricia Campos-Medina, a labor activist who ran for the U.S. Senate last year, said candidates who visit Latino businesses and talk about the economic challenges the way Sherrill has done show they get it. 'She has a message that covers a lot of big issues. But when it comes to Latinos, we've been focusing on the economy, affordable housing, transportation, and small business growth,' Campos-Medina said. When state Senate Majority Leader M. Teresa Ruiz, the state's highest-ranking Hispanic official, endorsed Sherrill last week, she cited her advocacy for affordable child care directly, for instance. A candidate's arrest Trump's four months in office have been defined by his aggressive crackdown on illegal immigration. That gave Baraka a chance to seize the spotlight on a non-economic issue as an advocate for immigrant residents in Newark. He was arrested while trying to join an oversight tour of a 1,000-bed immigrant detention center. A trespass charge was later dropped, but he sued interim U.S. Attorney Alina Habba over the dropped prosecution last week. 'I think all this stuff is designed to be a distraction,' he said recently. 'But I also think that us not responding is consent. Our silence is consent. If we continue to allow these people to do these things and get away with it, right, they will continue to do them over and over and over again.' In one of his final campaign ads in Spanish, he used footage from the arrest and the demonstrations to cast himself as a reluctant warrior, with text over the images saying he is 'El Único,' Spanish for 'the only one,' who confronts Trump. Confident Republicans Former state assemblyman Jack Ciattarelli is making his third bid for governor, and Trump's backing may help. But Chris Russell, a Ciattarelli campaign consult, said Democrats' habit of misreading of Latino voters might matter more. 'Democrats believe the key to winning these folks over is identity politics.' He added: 'They're missing the boat.' Ciattarelli faces four challengers for the GOP nomination in Tuesday's primary. During a telephone rally for Ciattarelli las week, Trump called New Jersey a 'high-tax, high-crime sanctuary state," accusing local officials of not cooperating with federal immigration authorities. But Jersey City Mayor Steven Fulop, another contender for the Democratic nomination, said he is not entirely convinced the Democratic party will keep losing support in New Jersey. He thinks the gubernatorial race will be a referendum on current Gov. Phil Murphy. Immigration and the economy may enter some Hispanic voters' thinking, but how that plays out is anybody's guess. 'The Latino community is two things in New Jersey. It is growing significantly, and it is a jump ball. There's nobody that has an absolute inside track.' —- Gomez Licon reported from Fort Lauderdale, Fla.
