Business Connection Kelso Longview Chamber of Commerce
Washington state lawmakers passed a $59 billion two-year operating budget and adjourned on April 25.
Association of Washington Business
k May 2021
Volume 13 • Issue 5 Business Connection is published monthly by the Kelso Longview Chamber of Commerce 105 N. Minor Road • Kelso, WA 98626
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Bill Marcum, CEO Amy Hallock, Project Manager Pam Fierst, Office Manager Joelle Wilson, Social Media Service
Legislature adjourns with $59 billion budget, new capital gains income tax
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ashington state government will increase spending by $5 billion in 2021-23 after lawmakers passed a $59 billion two-year operating budget and adjourned on April 25. On top of that, the Legislature allocated an additional $10 billion in federal Covid-19
relief. The Washington Research Council runs down the numbers here. The Democratic majority also passed the state’s first-ever capital gains income tax, which would apply a 7% tax on investment income over $250,000 (there are exceptions for real estate, some small businesses and a few other categories). The tax is likely to face legal challenges but Democrats included a provision aimed at blocking a public referendum on the tax, The Seattle Times reports.
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“Proponents of the new tax argue it will make Washington’s tax system more progressive,
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but there was no equivalent reduction in sales tax or business and occupation tax to help
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struggling employers,” said Association of Washington Business President Kris Johnson. “It’s simply a tax increase at a time when it wasn’t needed.” The News Tribune’s editorial board salutes several legislative Democrats who broke ranks to oppose “a big step toward the slippery slope of an income tax,” joining Republicans to oppose the capital gains tax.