The House of Representatives voted on a tax package to balance the state's $2.8 billion shortfall on April 12, 2010.

The tax package passed by the House and Senate Democrats and signed by the governor raises more than $794 million in taxes:

• $242 million tax increase on employers offering services, including:
  • real estate agents 
  • veterinarians
  • optometrists
  • dentists
  • graphic artists
  • attorneys
  • accountants
  • hairstylists
  • architects
• 50 cents/gallon tax increase on beers, excluding microbrews -- $62.6 million
• 2 cent tax increase/ 12 oz.  soda --- $34 million
• $155 million tax increase on direct sellers like Mary Kay and Avon
• $101 million tax increase on all tobacco products
• sales tax applied to bottled water -- $33 million
• $31 million candy and gum tax increase
• $140 million other tax increases (see the full package here)

This amounts to a nearly $1.7 billion tax increase for the 2011-13 biennium.

From the beginning, we offered to be part of the budget solution and provided ideas of where to find efficiencies to save taxpayer dollars. Unfortunately, once the Taxpayer Protection Act (Initiative 960) was suspended, the majority sent a clear message they intended to solve the $2.8 billion budget shortfall without our help.

We heard from our constituents who said tax increases will:

• increase the cost of products for struggling families;
• jeopardize current jobs and prevent future job growth;
• harm the economic viability of agriculture, one of our state's largest employers; and
• be misused for more growth in government, rather than looking at true reforms.

House Republicans did not vote for tax increases on struggling families, individuals and employers trying to get through this recession. The state must create an atmosphere that fosters job growth in Washington State.

Our statements on the largest one-year tax increase in state history:

• Orcutt releases statement on Democrats’ passage of largest tax increase in state history
• 20th District Reps release statement on tax increases approved by House Democrats
• Deputy House Republican Leader: Democrats’ $800 million ‘tax deal’ a bad deal for taxpayers, job seekers
• Armstrong opposes tax increase bill, says it will prolong recession
• Statement from Rep. Barbara Bailey on new tax increases passed by Democrats in special legislative session
• Statement from Rep. Norma Smith on Democrats’ $800 million tax increase
• Rep. Doug Ericksen’s comments on Democrats’ deal to raise taxes by nearly $1.7 billion
• Remarks from Rep. Jim McCune on passage of bill in special legislative session to raise taxes by nearly $1.7 billion
• Chandler, Taylor say massive tax package backhands taxpayers
• Nealey says tax increases will extend recession, votes against tax package
• Angel says tax increases will be ‘extremely painful’ for citizens, votes no
• Rep. Roach opposes tax increase package

Tagged as: tax, budget, revenue, washington, democrat, special-session