“The power under the constitution will always be in the people. It is entrusted for certain defined purposes, and for a certain limited period, to representatives of their own choosing; and whenever it is executed contrary to their interest, or not agreeable to their wishes, their servants can and undoubtedly will, be recalled.”

~ George Washington (1787)

Tuesday, April 23, 2013

$905 million in tax increases approved by House in Olympa


April 23, 2013


House Finance Committee approves $905 million in tax increases despite Republicans’ objections; Nealey votes ‘no’

Majority Democrats on the House Finance Committee this morning (Tuesday) rejected Republican amendments to prevent tax increases and then moved forward to pass House Bill 2038, a measure that would increase taxes by nearly $905 million. The vote was 8-5, with all Republicans voting against the tax measure, including Rep. Terry Nealey, who serves as ranking Republican of the House Finance Committee
“We’re in a downturn in the economy. What you’re attempting to do here is tax our way out of this recession. It just won’t work,” said Nealey, R-Dayton.
Nealey said extension of business and occupation (B&O) taxes to certain businesses would cost thousands of jobs in Washington.
“The multiplier effect is staggering against businesses’ bottom line. That’s because the B&O tax is a tax on gross income, not net.  So when companies make a large gross, but actually make only a little bit of money, this is a huge increase in taxes,” said Nealey. “This uses a butcher knife to these businesses instead of a scalpel, which would carve out what we think is fair and more equitable across the board. This picks winners and losers among our businesses. It’s not a good way to develop tax policy. I’m an adamant ‘no’ against this bill!”