capitol watch
The Legislature has grappled with each of these tax proposals for several years, but lawmakers of both parties have refused to pass them.
“ There is no doubt calls will get louder to repeal tax preferences and enact new taxes before negotiations begin in earnest later in the session,” said Eric Lohnes, AWB government affairs director for tax and fiscal policies.“ But, such a shortsighted action could make a ripple of its own— losing aerospace and other high-paying jobs, which hampers tax collections, and creates the uncertainty that scares off potential companies that may see our state’ s tax code as unpredictable.”
And, if the state Supreme Court weighs in, it may deem the governor’ s tax proposals inadequate to meet the stable and reliable threshold for K-12 funding purposes.
environment, climate and cap-and-trade tax
Touted as a new source of revenue for state government programs and services is the governor’ s carbon tax proposal.
Billed as a tax on industry, the fact is consumers of energy, fuel and natural gas will pay higher prices at the pump and to heat their homes. Employers will be forced to pass the higher costs onto customers, raising prices for all Washingtonians.
And, it will likely be viewed by employers as a piling on with the looming state Department of Ecology Clean Air Rule, which has the potential to damage the economy and impact jobs in the state’ s coveted manufacturing and energy sectors.
“ Washington employers are already leaders in carbon reductions and energy efficiency without costly new tax and regulatory structures,” said Brandon Houskeeper, AWB government affairs director for climate and environmental policy.“ As one of the greenest states in the nation, Washington employers have demonstrated that they share the values of a clean environment and resource conservation.”
As much of a longshot such a tax may be, and whatever happens, it has now landed squarely in the middle of the K-12 education funding debate.
“ As one of the greenest states in the nation, Washington employers have demonstrated that they share the values of a clean environment and resource conservation.”
— Brandon Houskeeper, AWB government affairs director for climate issues
k-12 education, workforce development and higher education
The crux of the tax and budget debate is financing local property tax levy reform. But, putting more money into schools without benchmarks for student outcomes is something that raises concern among the business community.
“ Employers are the consumers of the education system and they need it to perform in a way that fills a skilled workforce pipeline and closes the sizeable skills gap facing Washington businesses,” said Amy Anderson, AWB government affairs director of education and workforce issues.
“ This session will be very challenging with regard to taxes and spending. Employers should brace for more complex and controversial policies to arise.”
— Gary Chandler, AWB vice president, government affairs.
at a glance
The 2017 legislative session is scheduled to last 105 days. It is the session in which lawmakers craft the two-year state operating budget.
The governor released his budget plan Dec. 14 which included new and higher taxes he said will raise nearly $ 4.3 billion, purportedly for K-12 education spending, including: A new capital gains tax on high-income residents, new and untested carbon tax, closure of five tax preferences; and, a 1 percent Business and Occupation tax increase for service-sector businesses.
Billed as a tax on industry, a carbon tax would raise prices on consumers of energy, fuel, natural gas as well as goods and services.
An October 2016 Boston Consulting Group and Washington Roundtable study found there will be 740,000 job openings in Washington state in the next five years, many of them requiring workers with a postsecondary education or training.
In addition to K-12 education, the budget and taxes, AWB’ s government affairs team is watching labor and workforce issues, water storage and access issues and the health care changes that could come about with a repeal of the Affordable Healthcare Act.
AWB is engaged at the federal level on trade issues, including the Trans-Pacific Partnership and filling the last spot on the U. S. Export-Bank board, a critical piece to growing Washington state and the nation’ s exports.
Members should contact AWB Vice President, Government Affairs Gary Chandler at 360.943.1600 to learn more about how they can engage and share their voice on public policy.
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