Blog

New brief: Washington’s Business Taxes Exceed National Average

In fiscal year 2019, Washington state’s tax code relied heavily on businesses, which paid almost half of state and local taxes. Washington businesses paid nearly a quarter more in state and local taxes per employee than the average of their counterparts in other states. On all measures, Washington ranked at or above the national average, […]

How the pandemic is affecting public school funding in Washington and elsewhere in the U.S.

A New York Times article last week looked at public school funding issues related to the pandemic. The new federal aid bill, which was signed by the president on Sunday, includes $54.3 billion for the elementary and secondary school emergency relief (ESSER) fund. (That’s on top of $13.5 billion for this purpose that was part […]

Revenues are expected to keep growing (even without new taxes) and Gov. Inslee’s budget does not include funding for the working families tax credit

Last week the Everett Herald editorialized in favor of Gov. Inslee’s proposed taxes for 2021–23. A few points, for context: First, the editorial states, “Much of the Legislature’s focus when its session begins next month will be on filling an estimated $3.3 billion hole in revenue that the covid-19 pandemic and its economic downturn bore […]

Washington’s state tax revenues have held up well this year compared to other states

Lucy Dadayan and Kim Rueben of the Tax Policy Center consider whether state and local governments need additional funding from the federal government: “Some argue that states do not need assistance because of better than expected tax collections. But the State and Local Finance Initiative’s data show the actual revenue losses experienced by the states […]

A stand-alone corporate income tax would need to be set at a rate of 15.8% to replace the B&O tax

The Tax Structure Work Group (TSWG) met on Friday to review tax modeling work that has been done in preparation for a preliminary report that will be released later this month. The presentation is available here. A 2019 budget proviso required the Department of Revenue (DOR) to include in the report various specified tax alternatives. […]

The fiscal implications of the failure of ESJR 8212

In 2019, the Legislature created a new long-term care insurance program that will be paid for with a payroll tax (effective Jan. 1, 2022). This year, the Legislature passed a constitutional amendment, ESJR 8212, to enable the premiums to be invested, just as several other state funds are. Voters rejected the resolution last month. As […]

Washington’s tax structure is nation’s 16th least volatile, and revenues are holding up better during the recession (so far) than in many other states

The Puget Sound Business Journal (PSBJ) reported last week on an event with former Washington governors Gregoire, Locke, and Evans. According to the PSBJ,   All three governors said the state should create a more fair, progressive tax system that provides stability in recessions. Washington’s current tax system, relying heavily on sales taxes, has proven […]

Good news for state and local transportation budgets: state Supreme Court finds I-976 unconstitutional

Today the state Supreme Court held that Initiative 976 is unconstitutional because it “contains more than one subject, and its subject is not accurately expressed in its title.” I-976 was approved by voters last year. It would have limited vehicle license fees to $30, revoked the authority of transportation benefit districts to impose vehicle fees, […]

More on Boeing and taxes

Scott Hamilton of Leeham News and Analysis wrote last week about Boeing’s decision to move 787 production to South Carolina, and about the company’s recent history in Washington. Hamilton particularly points out the odd response from some that this decision should trigger a review of the company’s tax treatment. He also argues that the state […]

New brief: ESJR 8212: A Constitutional Amendment to Treat Long-Term Care Funds the Same as Other, Similar State Funds

ESJR 8212 would amend the state constitution to allow money in the new long-term care services and supports trust account to be invested in stocks. If approved by voters in November, this would put the new long-term care fund on the same investment footing as the state’s retirement funds, industrial insurance trust funds, and funds […]