With time about to run out on the special session and the governor saying she wouldn’t re-up, and no one wanting to increase the sales tax and with an income tax way off the table . . . the Washington House has passed a tax increase. (Goes now to the Senate, where passage looks more likely than not but isn’t assured.)
Sort of. More or less. Kind of a grab bag of taxes, aimed at raising $794.1 million.
What’s in it? Well, you kinda need a spreadsheet (six pages worth, to be exact) to work it out. Will you have to pay more taxes under it? Pretty much the same answer.
There’s a beer tax increase, a cigarette tax increase, a business & occupation tax increase (although it’s a decrease for some), and a bunch more.
The House Democrats, who passed the package essentially in-caucus, had this comment as well:
Three of the provisions are temporary and expire in 2013 – the B&O surcharge on most service businesses, the beer tax increase and the pop tax increase.
To protect really small service businesses, the B&O surcharge includes a doubling of the small business tax credit. The small business credit protects the first $46,600 in gross receipts for small businesses from any B&O tax. Service businesses that generate up to $80,000 in annual service income would have a smaller B&O tax bill under this proposal than they do today.
None of Washington’s breweries are expected to be impacted by the beer tax increase.
A B&O tax credit for jobs at Washington’s candy manufacturers will buffer them from any negative impact of the candy sales tax.
The first $10 million in volume of soda is exempt.
The idea being that small-scale taxpayers would be hit least, or not at all. A good deal of it sunsets in a few cycles. Parsed, it actually looks like not-bad stuff.
But it’s loaded with political ammo.Share on Facebook