Meaningful tax relief / 2022 Supplemental budgets

Washington state has an unusual problem right now: too much money. Soaring tax revenue and billions in federal coronavirus pandemic relief funds have left lawmakers with a robust bottom line as they work to develop and agree upon the state’s three supplemental budgets: operating, transportation and capital.

Typically, supplemental budgets make minor adjustments to the current two-year budgets. But it’s not a typical year.

After nearly two years of Congress giving out trillions to help the economy stay afloat during the pandemic, both red and blue states are cutting taxes, offering credits or delaying other taxes and fees. In fact, Idaho, our neighbor to the east, has recently approved one of the largest tax cuts in their history.

With more than $8.8 in surplus tax revenue, $1.8 in the budget stabilization account, and $1.2 billion of the state’s share of federal coronavirus fiscal relief, there’s no reason Washington state lawmakers cannot offer meaningful relief to taxpayers this year.

That’s why I was encouraged to see that Democratic Sen. Mona Das, of Kent, a leader in the majority party, sponsored legislation that would reduce the state sales tax. That simple change would give Washingtonians about $2 billion in tax relief. Senate Bill 5932 would make everything more affordable, with most of the benefit going to working families.

Unfortunately, it doesn’t look like Senate Bill 5932 is very popular with the senator’s majority party colleagues. The bill has yet to get a hearing in the Senate Ways and Means Committee. This delay is not a good sign on the long road to approval. It looks like this tax relief proposal will quietly die before even being considered.

Republican Sen. Lynda Wilson, of Vancouver, has introduced Senate Bill 5769 that would reform the state tax system by providing direct tax relief to residents, employees and employers. On Jan. 25, this bill was given a hearing in the Senate Business, Financial Services and Trade Committee.

Another good tax relief proposal that I strongly support, would expand the Working Families Tax Credit. Researchers, policymakers, and recipients have long known the positive economic benefits tax policies like the Working Families Tax Credit can provide. House Bill 2015, sponsored by Republican Rep. Drew Stokesbury, would help thousands of households with low and moderate incomes get the financial boost they need.

2022 Supplemental Capital Budget

The supplemental capital budget may not get as much attention on the operating and transportation budgets, but it should. The capital budget funds critical infrastructure projects across our state. Called the “brick and mortar” budget, it funds public buildings’ construction, repair and other long-term local community investments.

As a member of the House Capital Budget Committee, I can share that committee members are working hard to examine the more than $280 million in local and community project requests from across the state, including those in the 10th District.

Negotiations are tough but bipartisan. The biggest hurdle is the large number of requests. It is likely negotiations won’t be complete until the final days of session. After the budget is approved, I’ll share details on local funding for the 10th District.

If you have questions, comments, or suggestions about this article or other state government-related matters — please call, write, or email me. I’m happy to help.