Washington State has one of the most — if not the most — regressive tax systems in the country. A progressive tax system is needed to avoid cuts in the safety net and other state programs in a time of diminished revenue. The following bills begin to address inequities in the tax burden and help provide revenue to avoid cuts.
FCWPP supports these bills, which are now in House Ways and Means but may proceed to Rules or to the House floor at any point. So contacting any member of the House and Senate, as soon as possible, is appropriate as events can move fast. For the most up to date information, click on the bill number.
HB 2794: Eliminates the B&O tax deduction for interest on first mortgages for financial institutions that operate in more than 10 states. Now in House Ways and Means.
HB 2563: Imposes a 5 percent state tax on capital gains, with a $10,000 deduction for those filing joint federal returns and $5,000 for others; sale of a primary residence would not be subject to the tax. Washington is one of eight states that doesn’t tax capital gains. Now in House Ways and Means.
HB 2762: Repeals most sales and use tax preferences and business and occupation tax preferences in five stages, beginning in 2017. Now in House Ways and Means.
SB 6088: Requires new tax preferences to expire after five years (unless an alternative is set) and to contain a statement of legislative intent. Passed Senate; now in House Ways and Means.
Steven Aldrich, Legislative Advocate
Sam Merrill, Legislative Chair
Friends Committee on Washington Public Policy