Sen. Lynda Wilson prefers to put $4.5 billion of ending fund balance to work in the form of tax relief for Washington taxpayers
Brett Davis
The Center Square Washington
A Thursday legislative preview sponsored by the Washington State Association of Broadcasters and the Allied Daily Newspapers of Washington laid bare the stark difference of opinion between Democrat and Republican lawmakers on general tax relief.
The subject of broad-based tax relief, such as cuts in the state sales tax or lowering the property tax rate, came up at the gathering in the John A. Cherberg Building at the Capitol Campus in Olympia in the context of the current $64 billion state budget and Gov. Jay Inslee’s proposed $70.4 billion 2023-25 operating budget.
“We enter into this with about $6 billion in ending fund balance, and we have about $1.5 billion in mandatory costs and that’s net,” Sen. Lynda Wilson, R-Vancouver, said. “So that leaves us with about $4.5 billion to work with and that is certainly not the $15 billion that we had at the beginning of last year, but that’s still certainly a lot of money, and I think my caucus would put that toward tax relief.”
Wilson, the ranking member on the Senate Ways & Means Committee, sponsored legislation last session that exempted the first $250,000 of a primary residence from the state property tax. The bill didn’t make it out of committee.
Rep. Drew Stokesbary, R-Auburn, provided some context on the growth of the state budget over the years.
“With the governor’s budget proposal of over $70 billion, that means that the state budget has doubled since the time we [Stokesbary and Wilson] got elected just eight years ago,” the lead Republican on the House Appropriations Committee said. “I don’t know very many families that have seen their household income double over the last eight years. I don’t know very many small businesses who have seen their revenue double over the last eight years.”
Earlier in the legislative preview, Sen. John Braun, R-Centralia, commented on rising prices.
“The cost of food, of gas, of housing, of child care are frankly unaffordable for many Washingtonians today,” the leader of the Senate Republican Caucus noted. “Even if they could afford it six months ago just barely, today they probably can’t because of inflation.”
The current inflation rate in the U.S. is 7.1%.
Wilson indicated she thought broad-based tax cuts would be a no-go with Democrats this session.
“And I imagine in all likelihood the Democrats are not going to look at the tax relief that we’ve been looking at,” she said. “History tells us that.”
Sen. Christine Rolfes, D-Bainbridge Island, recognized the impact inflation is having on Washingtonians and pointed to targeted tax cuts going into effect this year as a means of relief.
“We also know that people are hurting with inflation right now,” the Democrats’ top Senate budget writer said. “That’s hitting every corner of the state.”
Rolfes went on to note, “I’m pleased to say that two years ago in bipartisan fashion we passed the Working Families Tax Credit. So that refund should be going out beginning in February, right when I think people need it the most.”
The Working Families Tax Credit will distribute $300 to $1,200 to those who qualify.
Rolfes also mentioned last session’s bipartisan passage of legislation eliminating the business and occupation tax for businesses making less than $125,000 in gross receipts. Gov. Jay Inslee signed the bill into law. It applies to tax reporting periods on or after Jan. 1.
“So entrepreneurs, mom and pop shops, will see that starting this month,” Rolfes said. “Quarterly payments for many will stop.”
Chair of the House Appropriations Committee Rep. Timm Ormsby, D-Spokane, explained his opposition to general tax relief in favor of measures focused on helping small businesses and “individuals that find themselves left behind, marginalized, underrepresented.”
He continued, “But I think from the Appropriations and spending side of things, our goal is to target investments to where they’re needed.”
Stokesbary was unimpressed by Democrats’ dismissal of broad-based tax relief and said as much.
“I would remind my friends across the aisle that if the sales tax is as regressive as it is claimed to be, and if the sales tax proportionally burdens the poor, then a sales tax cut is going to disproportionately help the poor,” he said. “It’s a simple mathematical tautology that I’m not sure the governor’s office understands. But I hope my legislative colleagues understand that if the sales tax disproportionately falls on the poor, cutting the sales tax will disproportionately benefit the poor.”
The 105-day legislative session starts on Monday, Jan. 9.
This report was first published by The Center Square Washington.
Also read:
- A week after raucous WA GOP convention, gubernatorial candidates share thoughtsThere were dramatically different takes from the two Republican candidates for governor on how last weekend’s state party convention in Spokane went down.
- Opinion: As more states enact learning choice programs that benefit children, nearly one million families have applied to participateLiv Finne of the Washington Policy Center reports that an exciting opportunity has emerged from the damage inflicted on students from the extended COVID public school shutdowns and school curriculum controversies.
- GoFundMe spotlight: An opportunity to help pay medical bill for Napoleon the AlpacaMountain Peaks Therapy Llamas and Alpacas, based in Ridgefield, is raising funds to help pay the medical bills for Napoleon the Alpaca, who suffered a neurological event.
- Ridgefield High School claims national title in Knowledge BowlThe brilliant Ridgefield Spudders Knowledge Bowl Team shook off a tough round in the state competition, then won the national championship.
- County treasurer offers drive-through tax payment drop-off, April 29-30Clark County Treasurer Alishia Topper will be reopening the drive-through tax payment drop-off window for the last two days of the tax season.
- Vancouver gears up for busy season of paving and preserving streetsThe city of Vancouver is preparing to pave and preserve streets across 20 neighborhoods this summer.
- Volcanoes return home Saturday, April 27, in The Basketball LeagueThe Vancouver Volcanoes look to improve to 4-0 against the Great Falls Electric this season, with a home game Saturday, April 27, at Hudson’s Bay High School.