Tag Archives: property tax

Senate Democrats approve first wave of massive tax hikes; an ‘expensive day for the taxpayers,’ say Republican budget leaders

OLYMPIA… Today the Senate majority approved a sales-tax increase that will hit lower- and middle-income families harder, a tax increase that will drive capital out of Washington, and a collection of unrelated tax increases that includes a new tax on self-storage rentals.

Sen. Chris Gildon of Puyallup, Senate Republican budget leader, offered this reaction to the onslaught of new tax bills:

“Today was a very expensive day for the taxpayers of our state, and unfortunately, the majority is just getting started. The three tax bills Republicans opposed today are just part of the Democrats’ effort to impose the largest tax increase in state history on the people of Washington.

“Just two days ago Governor Ferguson said $12 billion in new taxes is too risky. The Senate majority responded today by supporting bills that total more than $10 billion in new state and local taxes – and that’s not counting the billions in taxes that are still ahead, through a business-tax increase and a very harmful property-tax increase. It’s like they want to have a showdown with the governor that drags the Legislature into a special session.

“Our Democratic colleagues kept saying over and over today that all these new taxes are needed to support popular services. That simply isn’t true, and our no-new-taxes “$ave Washington” operating budget is proof. We gave the majority an opportunity to join us in bringing our plan to a vote, but the answer was no – even though it also gives our state the flexibility to respond to anything that comes out of Washington, D.C. I realize our budget may not fully satisfy some of the special interests that are looking to the majority to deliver, but our plan respects the taxpayers – and with eight days left in this session, it also offers the surest way to finish our work on time.”

Sen. Nikki Torres of Pasco, assistant budget leader, said this:

“Just today I heard the governor say he wants a balanced budget that doesn’t increase taxes on working families – then I watched the Senate Democrats pass a multibillion-dollar sales-tax increase that will hit working families. They can call it ‘modernizing the sales tax’ all they want, but this is still going to take more money from the people who can least afford to lose it.

“As bad as today was for the budgets of families across Washington, there is more trouble ahead. The Senate Democrats are looking to turn Senate Bill 5798, their bill to eliminate the 1% cap on the annual growth of property-tax rates, into a complete and costly rewrite of the education-funding reforms made many years ago after the McCleary court decision. It’s unbelievable that this is coming up with just a week to go in the session. Homeowners and renters deserve better, and so do our students and school districts.

“The best answer of all is to avoid a property-tax increase altogether. The combination of higher property taxes and higher sales taxes would be even harder on working families, which is not what Republicans or the governor want.”

The themes coming out of Olympia: more taxes and government control

Click here to view this week’s report from the legislative session.

Dear Friends and Neighbors,

It’s day 96 of this year’s 105-day legislative session. By now we’ve been able to see which bills are considered priorities by the majority, and which are not.

The majority has approved several bills that can be collectively described as efforts to increase government control over more parts of our lives.Click on the video above for my report on those.

Unfortunately for the families across our state that are struggling just to get by, Democrats also are clearly determined to push a number of tax increases through this year. Keep reading for more about those.

Where we are in the session

All but one of the deadlines for taking action on bills have come and gone (the final deadline arrives April 27… because we’ll adjourn that day). Much of what we do on the “floor” of the Senate chamber from here on out will fall into one of two categories.

One category is debating and voting on budget-related bills. Those include the massive tax increases that are being hustled through the process.

The second is called “concurrence.” Suppose a bill passed by the Senate goes to the House, which also approves the bill but after making a change to it. The next step is for the bill to come back to us to see whether we “concur,” or agree, with the change made by the House.

If the vote is to concur, the bill will have received approval from both chambers, and will head to the governor for what is typically a ceremonial signing (although sometimes the signing is mandatory to put the new law into effect). If we don’t agree with the House’s change, a few other things can happen. One way or another, the differences of opinion usually get worked out.

Majority party is moving its new tax bills quickly

On Wednesday the majority Democrats in the Senate and House joined forces to introduce a another tax package — five bills costing around $18.5 BILLION in all, to go along with the other taxes they had introduced separately about a month ago.

Those five bills were rushed through public hearings later Wednesday in the Senate Ways and Means Committee. Today two came in front of our committee and were approved by the Democrat members: an expanded sales tax on services (SB 5814) and an expansion of the tax on capital-gains income (SB 5813).

The majority members also approved a version of the so-called “wealth” tax (SB 5797) that had already received a public hearing in our committee back on March 31.

When the full Senate is in session tomorrow (Saturday), I expect there will be debates and votes on these three big tax bills. Think about that for a moment: less than four full days from introduction to potentially moving out of the Senate. It’s like the majority wants to ram these tax bills through before any opposition can organize.

It’s my understanding that the House Finance Committee will take up three more big taxes tomorrow: a property-tax rate increase (House Bill 2049), an expansion of the tax on businesses (HB 2081) and a tax on automakers that sell certain electric vehicles (HB 2077, nicknamed the “Tesla tax”).

The “make the wealthy pay more” messaging we’ve heard from Democrats all session long is a farce when you consider how raising the property tax and sales tax hits almost everyone regardless of income level.

Governor calls new tax package ‘too risky’ — and he’s right

To his credit, our new governor has again stepped up and voiced his concern about what his fellow Democrats are doing. I encourage you to read his comment (linked here) first, then my response will make more sense (it’s linked here)..

Also, this newspaper editorial from Wednesday gets it right about the need for sensible lawmakers to avoid going over a cliff by following “the Legislature’s left-leaning Democratic leaders.”

Republicans certainly see the danger in the Democrats’ agenda. We also know there’s a better way to budget, in the form of the $ave Washington plan (Senate Bill 5810). Unfortunately, it will take some bravery from several members on the majority side to derail the massive and unnecessary tax increases their left-leaning leaders support — and that’s what worries me.

During a lengthy interview yesterday on KVI Radio, I spoke of how calling something a business tax is inaccurate in the sense that consumers end up shouldering the taxes and other costs imposed by government — and also, how the property-tax and sales-tax proposals are my greatest concern.

Your Input Matters

I am committed to representing your interests effectively and I welcome your feedback and suggestions. You may contact me at:

It is an honor serving you and I look forward to your continued engagement and support!

Sincerely,

 

 

 

Sen. Chris Gildon, 25th Legislative District

On ‘Tax Day,’ Senate Democrats propose billions more in tax increases

OLYMPIA… As Washingtonians mark Tax Day, Olympia is seeing a second wave of tax proposals from the state Senate’s majority Democrats, to go with the $21 billion in new and higher taxes wrapped into the operating-budget proposal they endorsed two weeks ago.

The majority’s new tax legislation emerged today – coincidentally on the same day that the Senate Republicans’ no-new-taxes ‘$ave Washington’ operating budget became a standalone piece of legislation. Prior to today, what is now Senate Bill 5810 had been proposed only as an amendment to the Democrats’ operating budget.

Sen. Chris Gildon of Puyallup, Senate Republican budget leader, offered this reaction to the new tax bills, which would total approximately $12 billion:

“On the same day that people across our state are feeling the sting of federal taxes, the Senate Democrats have more than doubled the number of proposed tax increases on the table. It’s like they want a buffet of tax bills to choose from once they’ve decided how hungry they are – and with 12 days left in the session, there’s plenty of time for the majority to dream up still more ways to take money from the people.

“The budget negotiations between the Senate and House are happening out of public view, so there’s no telling how this will end. But even if the Senate majority pursues this $12 billion set of new taxes instead of the $21 billion in taxes tied to its budget, it would still amount to the largest tax increase in state history. That raises a disturbing question: if the Democrats end up demanding $9 billion less in new taxes, wouldn’t it have been a lie when they asked for $21 billion in new taxes and justified it as being ‘necessary to keep people alive’?

“It can’t be said enough: Our state can have a balanced budget that funds our shared priorities without a single tax increase, or a single cut in services, and without touching the rainy-day fund. Our ‘$ave Washington’ budget is proof that none of the Democrats’ tax proposals is necessary. By filing it as legislation we are keeping it alive through the end of the session, where everyone can see it.”

Sen. Nikki Torres of Pasco, who is assistant budget leader, offered this reaction:

“After going on and on for months about making the wealthy pay more, the majority seems to be falling back on the very thing they complain about – which is to increase the taxes that hit lower- and middle-income families harder, like property taxes and sales taxes.

“The new sales-tax proposal is a very unwelcome surprise, and the fact that there are now two property-tax bills in play tells me the Democrats are locked in on raising property taxes this year. The only question is whether it will be a tripling of the growth rate or worse. A higher tax on businesses would eventually find its way to consumers as well.

“The governor expressed concerns about the so-called ‘wealth’ tax, and the majority didn’t take him seriously when it should have. I also heard the governor say our state’s tax code is too regressive, so what do the Democrats do? They propose a sales-tax increase on top of property-tax increases. Here on Tax Day, the contrast between the Republican and Democrat budget priorities could not be clearer – and I have to believe our priorities line up better with the people we serve.”

The Democrats’ latest tax proposals include:

  • Expanding the sales tax on services, particularly computer and IT related services; temporary staffing agencies; security service; data processing; and certain kinds of advertising. This would generate $4 billion over four years at the state level and $1.5 billion in local sales tax (Senate Bill 5814).
  • Tripling the cap on “councilmanic” increases of the property-tax rate, making it 3% annually instead of the voter-approved 1%, and lifting the cap on school-district levies based on inflation and per pupil. (Senate Bill 5812, which is identical to House Bill 2049).
  • Expanding the tax on most businesses in Washington, such as retailers and wholesalers, which would generate an estimated $6 billion over four years (Senate Bill 5815).
  • Raising the tax rate on higher levels of capital-gains income, which would put Washington’s rate at fifth-highest in the nation and generate an estimated $1 billion or more (Senate Bill 5813).
  • A new tax the trading in credits to Washington’s requirements that automakers sell a certain percentage of zero-emission vehicles. As written, Senate Bill 5811 would likely apply only to Tesla (the bill is identical to House Bill 2077).

 

Republican budget leaders shocked by Democrats’ rejection of no-new-taxes, no-cuts budget proposal

OLYMPIA… The state Senate’s majority Democrats today passed a $78.6 billion operating budget that relies on the largest tax increase in state history, after rejecting the smaller, no-new-taxes, no-cuts budget proposed by Senate Republicans.

The “$ave Washington” budget, which doesn’t outspend the state’s anticipated level of revenue, was offered in place of the Democrats’ own budget, which would continue the trend of overspending that led to the $6.6 billion budget shortfall legislators must address. Democrats rejected it on a party-line 30-19 vote, before approving their own plan on a 28-21 vote.

The senators who crafted the Republican budget reacted with shock that Democrats would approve huge tax increases when a budget that protects services without raising taxes is available.

From Sen. Gildon, who is Senate Republican budget leader:

“Budgets are always about choices, and today the majority Democrats made a choice that is wrong for our state. They’re supporting a budget that would impose $21 billion in additional taxes, when they could have joined us to support a budget that doesn’t increase a single tax.

“Their budget will just about wipe out the state’s ‘rainy-day fund,’ even though it isn’t raining – we know that because the state expects to collect more revenue, not less, from the taxes already in place. Our budget leaves the rainy-day fund alone.

“The Democrats’ budget would raise taxes while cutting support for higher education, which means tuition increases at our state-run colleges and universities. Their budget raises taxes but won’t put more money toward law enforcement. It raises taxes but would make the Discover Pass and hunting and fishing licenses much more expensive. This budget is even balanced on the backs of state employees, who would be forced to lose pay by going on furlough.

“It’s amazing that so many senators would vote for a budget like that, knowing the harm it would cause the people they serve. Higher taxes aren’t inevitable, even though there’s a budget shortfall. Our no-new-taxes, no-cuts approach proves it. We offered the Democrats a better way, and they said no.”

(Click here to view Sen. Gildon’s remarks on the no-new-taxes, no-cuts proposal)

From Sen. Torres, who is assistant budget leader:

“These two budgets could not be more different, especially on taxes. The majority leaders have talked for months about how they want to make the wealthy pay more, yet their budget is filled with choices that dig deeper into the pockets of lower- and middle-income people in our state.

“The Democrats can’t possibly argue that the property-tax increases wrapped into their budget will be paid only by the wealthy. Property taxes hit everyone – lower-income families, middle-income families, and renters. That alone is reason to say no to the majority’s budget.

“In spite of the huge tax increases the majority proposes, they also would make a 26% reduction in funding for the state Office of Public Defense – just when the Washington Supreme Court is working on updated workload standards for public defenders to ensure adequate representation for defendants.

“Slashing funding for public defense means defendants in our state may go without legal representation, creating constitutional crises in our courts. At the same time, cases will stall or go unprosecuted entirely, allowing dangerous criminals to remain on the streets and making our communities less safe. Rural Washington will bear the brunt of these cuts, where public defenders are already stretched thin and access to legal resources is scarce.

“The Senate Democrats’ budget leaves Washingtonians vulnerable and sends the wrong message about the value of justice in our state. They had an opportunity to join Republicans and choose a better direction. Fortunately, this is not the final budget, and there still is time for legislators to get their priorities straight.”

(Click here to view Sen. Torres’ remarks on the no-new-taxes, no-cuts proposal)