Governor Gregoire’s Tax Proposals

Related Posts

Governor’s improvements to state budget would help many Washingtonians

Federal American Rescue Plan dollars can help Washington state invest in people, not policing

The numbers are in: State investments and federal stimulus put Washington on a real path toward recovery

New reforms bring balance and equity to state’s tax code and economy

Lawmakers act to balance state tax code by passing capital gains tax

Governor Gregoire’s Tax Proposals

By - January 15, 2010

This week, the Governor has released a number of tax-related proposals. Some raise revenue by closing tax exemptions and loopholes and addressing tax avoidance. Others institute new tax credits and deferrals. The table below provides a list of the 14 proposals made so far (click on it for a larger version). On net, they would provide $86 million in new revenue in the current biennium, an inadequate response to the need.  Stay tuned to schmudget for more information and analysis of these proposals.

 

Governors Tax Proposals

 

Note: A Supreme Court decision from September (Dot Foods, Inc. v. Department of Revenue) could have significant revenue implications for the state, but is currently under reconsideration. If the September decision is upheld, it could have a $153.6 million impact in the current biennium. In that event, the Governor has proposed that legislation be passed to clarify and repeal the exemption under consideration. The potential fiscal impact of the decision is not included in the Governor’s budget and her proposal to deal with the decision is not included in the above table.

About Andy Nicholas, Senior Fellow

Andy specializes in state budget and tax policy. Since joining the Budget & Policy Center in 2009, he has served on a Legislative Task Force on Tax Preference Reform and has conducted numerous analyses of Washington state’s tax code.

Read more about Andy