Speaker Chopp Says Sales Tax Hike Unlikely

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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."

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