Senate Democrats have unveiled a $17 billion slate of new taxes to support their budget. Measures include taxes on wealth (SB 5797), payroll (SB 5796), and property (SB 5798), in addition to repealing 20 tax incentives (SB 5794) and reducing the sales tax by 0.5 percent (SB 5795). Hearings on the entire tax package are scheduled for March 31.
House Democrats have released a proposed tax package dedicated to education funding and public services to reinstate cuts from the Inslee budget. The package overlaps with the Senate by including a wealth tax (HB 2046) and property taxes (HB 2049). However, it differs by imposing a 3% cap on property taxes, whereas the Senate has no cap. Instead of including a payroll tax, the House relies on a business and occupation tax increase for income over $250M and moves the tax rate for financial institutions from 1.2% to 1.9% (HB 2045). The House does not reduce the sales tax.
