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Captive insurance bill passed unanimously by Senate

Yesterday the Senate unanimously passed 2SSB 5315, which would subject captive insurers to the 2% premium tax. We wrote about the issue in a policy brief earlier this year. Captive insurers are insurance companies that are controlled by their insured. Companies may use captive insurers for several reasons, including to improve risk management, to fill […]

Washington’s revenue and personal income growth indicate that this recession is much different from the Great Recession

Some proponents of new taxes this year are arguing that Washington needs to have new revenue sources in place for when the federal relief funds run out. These arguments ignore the fact that this recession now appears to be quite different from the Great Recession: In the Great Recession, state revenues actually declined by 5.5% […]

Capital gains tax striking amendment would not effectively address revenue volatility

In advance of Senate floor action on the capital gains tax bill (SB 5096), Sen. Robinson has proposed a striking amendment. (Kriss wrote about the bill as passed by Ways & Means here, and I wrote about how it would make our revenue structure more volatile here.) The striker would broaden the small business deduction, […]

On the regressivity of Washington’s tax structure

Austin Jenkins has a story about the drive to adopt new taxes this year (particularly a capital gains tax), despite the fact that revenues are increasing and Washington does not have a budget shortfall. Even as the state of Washington’s revenue picture improves, majority Democrats in the Legislature appear committed to a course that will, […]

HB 1465 would increase estate tax rates and significantly reduce deductions for charitable donations

Washington is one of just 12 states with an estate tax, and the top tax rate here (20%) is tied for the highest in the country. Nevertheless, HB 1465 would double the top rate. First, the bill would raise the threshold for estates to be subject to the tax. Currently, $2.2 million may be excluded […]

A capital gains tax would make state revenues more volatile, but capital gains revenues in the Senate bill would not contribute to the rainy day fund

One of the strengths of Washington’s tax structure is that revenues are relatively stable. Pew estimates that Washington’s tax revenues are the 16th least volatile in the country. And one of the strengths of Washington’s budget system is our constitutional rainy day fund (the budget stabilization account, or BSA). Pursuant to Art. VII, Sec. 12 […]

Capital gains bill advances

In January, Emily wrote about the capital gains tax included in Gov. Inslee’s budget proposal and introduced as SB 5096. On February 16, the Senate Ways and Means Committee passed substitute version of the bill, SSB 5096.As passed by the committee, the tax rate is 7%, down from 9% in Gov. Inslee’s proposal. In the […]

Washington’s revenue growth since the pre-Great Recession peak is now second highest in the nation

In our policy brief about how Washington does not have a budget shortfall, we showed how state revenues have continued to increase through the current recession. We also noted that our revenue growth compares favorably to other states. Pew has now released new data that shows that Washington’s tax revenue growth from the pre-Great Recession […]

A sweetened beverage tax would help fund public health

SB 5371 would impose a statewide tax on distributors of sweetened beverages, with the intent to lower consumption of sweetened beverages and promote both foundational public health and health equity. Under SB 5371, the tax rate would initially be 1.75 cents per fluid ounce. The rate would be increased by inflation each July 1. Distributors […]

A wealth tax for all?

A bill has been introduced in the state house of representatives that would impose a 1 percent wealth tax on financial assets held by the state’s wealthiest residents. This bill, house bill 1406, received a hearing before the house finance committee on Tuesday. The text of the bill is here. The fiscal note for the […]