Voice of the Mid-Columbia | Kennewick, Pasco and Richland, Wash. |
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Chris Mulick has worked for the Herald since 1998 and has served as the statehouse correspondent covering state government and politics since 2000. He works year-round out of the Herald's Olympia bureau on the state Capitol campus. Have a question? Send Chris an e-mail and he'll answer the best questions regularly. |
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closeThe progressive Economic Opportunity Institute is proposing a mish-mash of tax increases and cuts that it believes would help plug Washington’s multi-billion dollar budget deficit while passing muster with voters.
But would it gain favor with campaign donors? That’s another matter.
The EOI plan would raise more than $2 billion for the next budget cycle, going a long way to fill most of what is now projected to be a $2.7 billion budget hole when the Legislature convenes in January.
Of course, all the usual caveats apply — the $2.7 billion figure may yet be adjusted up or down and doesn’t include the funding of the state’s new working family tax credit or initiatives 985 and 1029, which are likely to qualify for the November ballot.
The EOI plan most notably includes an income tax on those making more than $100,000 annually, or $200,000 for joint filers. For joint incomes between $200,000 and $999,000 the rate would be 3 percent. Anyone bringing in over $1 million annually would be taxed at a 5 percent rate. The EOI believes that would raise almost $2.6 billion.
The plan would also extend the sales tax to cover goods — such as candy, gum and custom software — and services such as stock brokers and security services. It also would eliminate unspecified business tax breaks to the tune of $400 million.
Figuring such a radical restructuring would need voter approval, the EOI suggests tripling the business and occupation tax credit for small businesses and approving one of two billion-dollar tax cut proposals to sweeten the pot. One option would cut the state portion of the property tax in half. The other would trim the state portion of the sales tax from 6.5 percent to 6 percent.
Depending on which option was selected the plan would increase state revenues by $2.1 billion to $2.3 billion.
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