Washington Democrats Propose $17 Billion Tax Reforms

Democrats in Washington State are proposing significant tax reforms to address a projected budget shortfall of up to $16 billion over the next four years. Senate Democrats introduced a plan to generate $17 billion through new taxes on wealthy individuals and large businesses, including a Financial Intangible Assets Tax and a payroll tax similar to Seattle's Jumpstart Tax. They also propose raising the cap on property tax increases and reducing the state sales tax by half a percentage point to ease the burden on consumers. The House Democrats' proposal aligns closely but does not include a sales tax cut, focusing instead on a wealth tax outlined in House Bill 2046. Governor Bob Ferguson has expressed reservations about new taxes, particularly the wealth tax, though he has not completely ruled out such measures. These proposals are part of a broader effort to avoid drastic cuts to state programs while maintaining funding for public schools and essential services.