Shea: Tax increases will send businesses, jobs to Idaho
Majority Democrats in the House of Representatives have voted yet once again to raise taxes. The latest tax package emerged late Friday night with lawmakers returning Saturday for a vote. The Democrat plan would increase taxes by nearly $800 million.
Senate Bill 6143 contains 16 different tax increases that would primarily affect businesses and families. Noting that it would be the largest tax increase in the history of Washington state, Rep. Matt Shea, R-Spokane Valley, said the tax proposals would be particularly devastating to the 4th Legislative District.
“This is going to seal the deal of businesses leaving my district and going to Idaho. Hundreds of jobs will be lost. It will take years to recover from the damage Democrats in the Legislature are passing through these tax bills,” said Shea. “The governor of Idaho has rolled out the welcome mat in a 'love letter' for our businesses because he recognizes the damage Democrats in the Washington Legislature are about to do, and he knows this tax package is Idaho's Economic Stimulus Act.”
Shea is particularly concerned about taxes extended to small businesses.
“Not only will businesses be hit hard, but it will also strike out at families struggling to pay their bills. Nearly 7,000 people in the 4th District are looking for work. We can expect that number to rise significantly as a result of this tax package,” added Shea.
The vote on the House Democrat tax package was 53-42. All Republicans voted no.
Details of the House Democrat tax package are included below:
|
House Democrat Tax Package – SB 6143 |
2009-11 |
| Increasing B&O tax on services from 1.5% to 1.75% until 2013
Includes: accounting; tax preparation; bookkeeping; payroll services; advertising and related services such as public relations services, direct mail advertising services, and display advertising services; agent and management services for artists, athletes, entertainers, and other public figures; legal services; management, scientific, and technical consulting services; marketing research and public opinion polling services; and promoting services for the performing arts, sporting, and similar events |
201.0 |
| Increasing taxes on direct sellers |
154.7 |
| Increasing cigarette and other tobacco taxes |
108.6 |
| Increasing taxes on employers through new economic Nexus standards |
84.3 |
| Imposing sales tax on custom software |
76.5 |
| Increasing taxes on home mortgages and community banks |
50.7 |
| Increasing taxes on nonresidents |
41.5 |
| Imposing sales tax on bottled water |
38.0 |
| Creating a “guilty until proven innocent” standard for business activities |
11.6 |
| Increasing convention center hotel-motel tax in Seattle |
10.0 |
| Increasing B&O taxes on property management salaries |
8.3 |
| Increasing B&O taxes on canned meat and fruit/vegetable products |
4.8 |
| Increasing taxes on airplanes |
4.0 |
| Imposing B&O tax on corporate board of director fees |
2.1 |
| Increasing taxes on livestock nutrient management (manure cleanup) |
1.6 |
| Making corporate officers personally liable for tax debts |
1.0 |
| Total general fund tax revenue |
$798.7 |
Contact: John Sattgast, Senior Information Officer: (360) 786-7257