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House approves final pieces
of half billion dollar tax increase
It was an expensive day
for taxpayers on the floor of the state House of Representatives as
lawmakers put the final pieces in place for the Democrats’ half billion
dollar tax increase. The House passed several tax increase bills,
including measures to reinstate Washington’s death tax, increase taxes
on cigarette and spirits, and impose a sales tax on extended warrantees
that consumers pay on items such as automobiles and household
appliances.
The total cost to
taxpayers from the bills adopted late Thursday and Friday would be $400
million in the next biennium. Combined with other tax hike bills adopted
this session, the House has authorized $515 million in tax increases so
far this session.
State Reps. Richard DeBolt
and
Gary
Alexander said the reliance on taxes to pay for spending
increases in the budget is unfortunate.
“We didn’t need to raise
taxes,” said Alexander, R-Olympia, who is the lead Republican on the
House budget writing committee. “With the revenue we have coming in, we
could increases the budget by $1.7 billion without raising a single
nickel in new taxes. These tax bills are the price citizens will have to
pay for the Democrats $2.8 billion spending increase. This tax and spend
approach is bad for our fragile economy, its bad for families trying to
make ends meet, and its bad for taxpayers who have made it clear they
want government to live within its means.”
Senate Bill 6096, adopted Friday evening, would resurrect the state
“death tax” which was repealed by voters when they approved Initiative
402 by a 67 percent majority in 1981. The bill would impose a tax on
estates valued at $1.5 million. The 20th District lawmakers say the tax
is unfair and would prevent owners of family business from passing them
down to their children.
“These families have
worked hard all their lives and sacrificed to build a successful
business,” said DeBolt, R-Chehalis. “Now the state is going to punish
their success and tax their heirs for the mere privilege of doing
business in Washington. These are the people who contribute to our tax
base and to the wealth of our communities. We tax them when they earn
their money, we tax them when they invest, and now we’re going to tax
them again when they die. If they don’t lose their businesses, these
families essentially have to buy back their own businesses from the
state every generation.”
Other taxes in the package
include a 60-cent-per-pack increase in the cigarette tax, a $1 per liter
increase in the liquor tax and a new sales tax ranging from 7 to 8.9
percent on consumers who purchase extended warrantees.
The 2005 legislative
session is scheduled to adjourn Sunday.
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For more information, contact:
Brendon Wold, Public
Information Officer: (360) 786-7698
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