FOR IMMEDIATE RELEASE
April 23, 2013
- John Sattgast, Senior Information Officer/Broadcast Coordinator – (360) 786-7257
- Rep. Terry Nealey – (360) 786-7828
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!”