Jaw-dropping $13 billion tax package passed by House Democrats
This is what happens in Olympia without the 2/3 protection:
HB 2224, titled AN ACT Relating to investing in education and essential public services by modifying and improving the fairness of Washington’s excise tax system by enacting an excise tax on capital gains, narrowing or eliminating tax preferences, reinstating a previously expired business and occupation surtax while increasing the small business tax credit, and implementing marketplace fairness in Washington, has been introduced in the House of Representatives. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.
Ten-year projection:
| Fiscal Year | Business & Occupation Tax | Capital Gains Tax | Real Estate Excise Tax |
Retail Sales Tax | Use Tax | Total | ||||||
| 2016 | $ 292,199,000 | $ 38,013,000 | $ 82,055,000 | $ 14,401,000 | $ 426,668,000 | |||||||
| 2017 | 336,879,000 | $ 571,000,000 | 43,912,000 | 93,955,000 | 15,884,000 | $ 1,061,630,000 | ||||||
| 2018 | 355,338,000 | 627,000,000 | 45,568,000 | 97,616,000 | 16,040,000 | $ 1,141,562,000 | ||||||
| 2019 | 379,538,000 | 647,000,000 | 47,291,000 | 150,866,000 | 16,199,000 | $ 1,240,894,000 | ||||||
| 2020 | 403,589,000 | 665,000,000 | 50,410,000 | 211,379,000 | 16,359,000 | $ 1,346,737,000 | ||||||
| 2021 | 430,381,000 | 682,000,000 | 51,624,000 | 279,581,000 | 16,521,000 | $ 1,460,107,000 | ||||||
| 2022 | 455,756,000 | 702,000,000 | 53,689,000 | 296,684,000 | 16,684,000 | $ 1,524,813,000 | ||||||
| 2023 | 482,633,000 | 702,000,000 | 55,836,000 | 314,909,000 | 16,849,000 | $ 1,572,227,000 | ||||||
| 2024 | 511,108,000 | 702,000,000 | 58,069,000 | 332,742,000 | 17,016,000 | $ 1,620,935,000 | ||||||
| 2025 | 541,270,000 | 702,000,000 | 60,392,000 | 351,807,000 | 17,186,000 | $ 1,672,655,000 | ||||||
| Total: | $4,188,691,000 | $6,000,000,000 | $504,804,000 | $2,211,594,000 | $163,139,000 | $13,068,228,000 | ||||||
Passed by voters in 2007, Initiative 960 requires a 10 year cost projection for any tax increase bill.
Printed above is the jaw-dropping cost projections for the various tax hikes proposed by the House Democrats (all 51 of whom voted yesterday to impose them): over $13 billion in its first 10 years.
None of these tax hikes are temporary, they’re all permanent. So it is totally appropriate to look at both the short-term and long-term costs to the taxpayers.
Add this $13 billion tax package to the Senate’s $15 billion transportation tax package, which includes Sound Transit’s authorization to impose another $11 billion, and I think all of Washington’s citizens are shocked and stunned by Olympia’s massive $39 billion tax attack this session.
This is what happens in Olympia when there isn’t a 2/3 vote requirement for tax increases.
The most effective way to fight back is by helping us get the 2/3-For-Taxes Constitutional Amendment Initiative on the ballot. This is the most exciting, impactful, needed initiative we’ve ever done. Voters clearly need protection from Olympia’s insatiable tax appetite.
Success is the only option with the signature drive for I-1366. Please help us make it happen.