Political Buzz

Talking WA politics.

NOTICE: Political Buzz has moved.

With the launch of our new website, we've moved Political Buzz.
Visit the new section.

It’s official

Post by Jordan Schrader / The News Tribune on April 10, 2010 at 3:30 pm |
April 10, 2010 3:30 pm

Democratic budget negotiators officially unveiled their long-awaited tax plan this afternoon.

If leaders decide they have the votes, the House could vote as soon as today on the $667 million package, followed later by the Senate. Other legislation bumps the total revenue to about $800 million, with most of the difference coming from a $1-per-pack cigarette tax increase.

The plan would:

  • Increase business taxes on most service businesses – such as lawyers and accountants – from the current 1.5 percent to 1.8 percent. The increase would last three years and a tax credit for small businesses would permanently double. Raises $242 million.
  • End a tax exemption for certain out-of-state businesses that do sales in Washington through representatives. Raises $155 million.
  • Triple the beer tax, adding about 28 cents to cost of a six-pack. The increase would last three years and microbrewers’ first 60,000 barrels would be exempt. Raises $59 million.
  • Increase tax on soda pop by 2 cents per 12-ounces of pop, also for three years. Bottlers’ first $10 million in sales would be exempt. Raises $34 million.
  • Apply sales tax to bottled water, also for three years. Raises $33 million. There are exemptions for people who don’t have potable water or have a medical need for bottled water.
  • Apply sales tax to candy and gum, permanently. Candy makers will get a $1,000 tax credit for each of their Washington employees for the next two years. Raises $31 million.
*
The News Tribune now uses Facebook commenting on selected blogs. See editor's column for more details. Commenters are expected to abide by terms of service for Facebook as well as commenting rules for thenewstribune.com. Report violators to webmaster@thenewstribune.com.