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Pew finds that state tax revenue in Washington is less volatile than in the majority of other states

The Pew Charitable Trusts have posted an analysis comparing the volatility of the tax systems of the fifty states. The index Pew uses for volatility is the standard deviation of year-over-year percent change of each state’s total tax revenue from 1994 to 2013, adjusted for all known tax changes. Alaska has the highest volatility score, […]

Boston Fed paper on the increasing volatility of state taxes on capital gains

Governor Inslee has proposed that the state institute a 7 percent tax on capital gains. The first $25,000 of gains for an individual ($50,000 for a couple) would be exempt, as would all gains on a principle residence that had been owned for 20 years or longer.  (For a few more details on the proposal […]

The Department of Revenue has posted its annual Revenue Alternatives list

Before each legislative session, the state Department of Revenue produces a list showing the state revenue impact of various possible tax rate increases. Here is the new version, based on the November 2014 revenue forecast:

Governor's proposed capital gains tax: Considering possible negative consequences

As Kriss wrote yesterday, the governor’s budget includes a new capital gains tax  (link to detail on governor’s web page is currently down). The essence: The Governor proposes a new capital gains tax on the sale of stocks, bonds and other assets to increase the share of state taxes paid by our state’s wealthiest taxpayers. The […]

Governor proposes $2.3 billion education package, doesn't fund I-1351 class size reduction

Gov. Jay Inslee launched his extended budget rollout by focusing on education. This is, of course, the fun part of the rollout, talking about what the new spending will buy before having to get to the grit of new taxes. It’s, well, let’s just use the governor’s own characterization, Inslee proposes boldest new efforts in […]

State budget must invest wisely in education: Yes to STEM, No to I-1351 Class Size Measure

This week Gov. Jay Inslee rolls out his 2015-2017 budget proposals. Education funding will take center stage, driven by the state Supreme Court’s McCleary mandate and voter-approved (narrowly) class size reduction Initiative 1351. While I-1351, which adds $4.7 billion in new spending over the next four years, is clearly unaffordable, lawmakers are expected to add […]

Transportation funding, climate change and the electric car tax incentive … skeptics want to tap the brake

Gov. Jay Inslee believes electric cars are good for the state and good for the planet. And he’s looking for ways to promote them. …Inslee wants to extend a sales-tax break for electric vehicles and explore giving them access to carpool lanes…[Also, he] said he wants to install more charging stations and create incentives for builders […]

Washington ranks No. 8 in latest Forbes "best states for business" rankings

In Forbes magazine’s 2014 Best States for Business, Washington finishes in 8th place. Not bad in the 50 state field. Win, place and show go to Utah, North Dakota and North Carolina, respectively. As is common in the Forbes rankings, Washington fares best on measures of economic vitality and falls down on business costs and quality […]

Clarifying the 2015 budget picture

Kriss posted yesterday on the improved revenue picture. As Brad Shannon reports, the higher revenue collections are accompanied by higher caseload and enrollment numbers. State budget director David Schumacher told the Caseload Forecast Council meeting in Olympia that an expected increase in K-12 school enrollments alone may add $380 million to the state’s costs through June 2017, which […]

Voters delivered a sensible message: What it means for 2015

In my column yesterday I assessed last week’s election, finding parallels between the national and Washington state outcomes. Using national trends to interpret our state elections can be risky. We’re different out here and proud of it. But last week showed some unmistakable signs that the wave sweeping most of the country splashed us as […]