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Help employers by moving tax
payment deadline,
says House GOP leader on tax policy
Optimistic state revenue
forecasts have the House Republican leader on tax policy suggesting that
employers again be allowed to remit their taxes to the state on the 25th
day of each month rather than the 20th day.
Rep. Ed Orcutt,
R-Kalama, said it would be appropriate for Gov. Christine Gregoire to
support such a change in conjunction with her proposed budget package,
expected this month.
“Continuing to require tax payments by the 20th instead of the 25th
means continuing an unnecessary financial hit on employers,” said
Orcutt. “Clearly, the state no longer needs the interest it gets from
depositing those payments five days sooner. In fact, the deadline could
have and should have been changed back during the 2005 session, but
Governor Gregoire and the legislators from her party chose to keep the
extra revenue coming in – despite the $1.7 billion extra they were
expecting to receive from the improving economy she inherited – just to
allow them to increase spending by 12 percent.
“If the governor really
wants to keep the economy growing, she can start by returning the
deadline to the 25th, so the employers who generate the revenue in the
first place can keep it in the bank a little longer,” Orcutt said. “I’ll
have the legislation ready to do that.”
The 2003-05 state budget
package included the change in the tax payment deadline, which was
intended to generate a temporary shot of revenue – estimated at $6.5
million over those two years – that would help get the state through a
tough period. It was never meant to be a permanent new source of
revenue, Orcutt explained.
“Considering the state’s revenue projections have increased each quarter
this year, reverting to the 25th as the tax payment deadline is really
the least the governor should be advocating for employers,” said Orcutt,
who helps approve those projections as the House Republican member of
the Economic and Revenue Forecast Council.
“The governor claims the new budget she signed earlier this year was
intended to improve the state’s business climate over the long term. Try
telling that to our state’s employers, who have already asked that the
date be changed back to the 25th,” Orcutt said. “The state’s Christmas
present from these employers is about $1.4 billion larger than expected
-- and rising -- thanks to the taxes and fees they pay. And what have
they gotten in return? Several big lumps of coal put there this year by
the governor, her agencies and legislators from her party: a new sales
tax on extended warranties that will further tax Christmas shoppers, the
rollback of unemployment insurance reforms, another hike in workmen’s
compensation premiums that will average 3.7 percent, and the new ‘death’
tax – despite the improving economy she inherited.”
“I’m pleased the economy is improving despite the stress put on it by
the governor and the legislators from her party through the tax
increases and regulatory changes they approved this year. But imagine
the economic performance we might be seeing if the Legislature had held
the line on taxes and spending instead,” added Orcutt.
“If the governor really wants to help improve Washington’s business
climate, let’s repeal the taxes that were raised to balance the biggest
state spending increase in a dozen years, and reform the regulations
that have been keeping our employers from being more competitive.”
# # #
For more information, contact:
Brendon Wold, Public
Information Officer: (360) 786-7698
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