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Yahoo
24-04-2025
- Business
- Yahoo
Facing Sunday deadline, lawmakers continue work to adopt Washington budget
Apr. 23—OLYMPIA — Like watching the winter snow slowly melt off of the peaks of Mt. Rainier in the spring sun, legislators continue their work to adopt a budget, even if the progress is hard to discern with the naked eye. As the 2025 legislative session comes to a close, addressing the state's multibillion-dollar budget deficit remains the top priority for state lawmakers. So far, the Senate passed three revenue bills, including a bill Democrats say would "modernize" the state's sales tax and bring in a projected $2.9 billion over the next two years and $4.7 billion over four years. The sales tax would be expanded to cover software development and other information technology services. The state's tobacco tax would also be extended to cover nicotine pouches, such as Zyn. A proposal to raise the capital gains tax on assets over $1 million and bring in approximately $282 million over the next two years and $561 million over four years also found support among Senate Democrats. The Senate also adopted a bill to repeal tax exemptions where the "public policy objective was not met," including with the international Business and Occupation tax credit and the dentistry prepayment insurance premiums tax exemption, or where the exemption is "legally obsolete." Following their public hearings on Monday, each proposal received a "do pass" recommendation from the House Finance Committee on Tuesday. Meanwhile, revenue proposals that have passed the House include amending the state's business and occupation tax by increasing the B&O tax on manufacturing, retailing and wholesale businesses and on taxpayers with state income above $250 million, and raising the per-student limit on school enrichment levels. The bills, which passed Tuesday evening, each received a hearing in the Senate Ways and Means Committee on Wednesday and could be voted out of the committee on Friday. While an array of revenue proposals continues to work its way through the legislature, it remains unclear how much revenue Gov. Bob Ferguson will support. Ferguson — who has publicly rejected a wealth tax and called the plan to raise $12 billion in new taxes "too costly" — has not tipped his hand on what he would support in a new budget, though he has rejected adopting a cuts-only budget. Following a bill signing Tuesday, Ferguson said he remains "optimistic" the legislature will adjourn on time. "Of course, if it takes an extra day or two, I'm not overly worried about that," Ferguson said. "But I think a lot of progress is being made." The governor declined to discuss unresolved legislation, including a proposal to cap yearly rent increases that has also progressed this session. While he previously ruled out a wealth tax, Ferguson has largely avoided saying which tax proposals he could support, or at what amount, and has kept his discussions with Democratic leadership and budget writers private. "I've got nothing more to say on the revenue," Ferguson said. "I think that they're working hard, and I appreciate their hard work." The most important thing, Ferguson said, is "a budget that meets our needs and balances out revenue and some savings." Sen. Marcus Riccelli, D-Spokane, was equally optimistic about the legislature completing its work on time. "There's a lot of things to be worked out here in the closing days," Riccelli said. "This place works in that scenario, where the pressure helps us move to action." Riccelli said he believes a lot of the "key agreements" are in place. A member of the Senate Ways and Means Committee, Riccelli said each of the revenue proposals "still have to go through the process." "Everybody gets to have a touch on it, that's how the process works, both chambers," Riccelli said. Senate Minority Leader John Braun, R-Centralia, meanwhile, estimated Wednesday that there's a 50/50 chance the legislature needs a special session to complete its work. "Depending on where they land, the governor has been pretty clear that he is not comfortable with the level of spending they've put forward," Braun said. "My best guess is that it's going to run to the end, and it's going to land in the governor's lap, and whatever they have planned and haven't shared with all of us yet, and the governor's going to have to decide if he thinks that's right for the state of Washington. "That's what's going to drive a special session at this point." House Minority Leader Drew Stokesbary, R-Auburn, was also critical of the Democrats' budgeting process, which has long frustrated Republicans . "Democrats have engaged in the most reckless taxing spree one could possibly imagine, and I mean that both substantively and procedurally," Stokesbary said. "Substantively, they are taxing the jobs out of Washington." Procedurally, Stokesbary said, Democrats have engaged in the "worst way imaginable" to draft tax policy. "Tax policy should be well thought out, it should be fair, uniform, predictable, treat taxpayers evenly, allow businesses to plan," Stokesbary said. "That is not what is happening." Stokesbary said rank-and-file legislators in both parties have yet to see what's in the budget, which "definitely means the public hasn't seen what's in the budget." "Which is a big problem," Stokesbary said.
Yahoo
29-03-2025
- Business
- Yahoo
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.
