Speaker Chopp Says Sales Tax Hike Unlikely
In the end, it's unlikely majority Democrats will raise the state sales tax to help rebalance Washington's budget.
That's the word Thursday from Speaker of the House Frank Chopp, a Seattle Democrat.
However, Chopp acknowledges that one sales tax proposal is still on the table: a temporary increase that would be offset by a tax credit for lower-income working families.
Frank Chopp: "That is one proposal being considered because obviously if you raise the general sales tax, which I don't believe we will in the final analysis, although it's still on the table, it needs to be coupled with something that makes it more fair for the people that pay a higher percentage of their income for state taxes."
The liberal Budget and Policy Center in Seattle projects a one-cent increase in the sales tax paired with the tax credit would bring in $1 billion next year.
Chopp says rather than a general tax increase, his main interest is closing tax loopholes. For example, exemptions enjoyed by out-of-state companies that do business in Washington.
Speaker Chopp spoke with Austin Jenkins on TVW's "Inside Olympia."
© 2010 OPB
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