washington business
Tommy Gantz agrees that building reserves should be a priority . She also points out , “ Tax increases to support the state
$ 35 budget are unnecessary in 2022 . There ’ s simply no need .”
$ 30
Tax policy will remain under discussion in the
$ 25 session . The Tax Structure
$ 20
Work Group charged with evaluating the tax system
$ 15 won ’ t make recommendations until late 2022 . That doesn ’ t
$ 10 mean there won ’ t be efforts to raise taxes ahead of the Work
$ 5
Group ’ s recommendations , as there were last session
$ 0 when proponents jumped the Work Group gun in passing the capital gains tax . When the Legislature is in session , anything can happen .
There are already indications there will be some fiscal give-and-take in the session , according to an Associated Press report . The leading budget writers in the two parties expressed different reactions to the latest increase in the revenue forecast .
Sen . Lynda Wilson , Republican lead on the Ways and Means Committee has endorsed tax reductions , including a possible property tax cut . “ I think it ’ s time we give back to the Washington state taxpayers ,” she said when the forecast was adopted . “ We can afford to do that this year .”
Majority Democrats have said that , despite the recent increases in state spending , there remain significant funding needs . Still , Rep . Timm Ormsby , chair of the House Appropriations Committee , has indicated a reluctance to pursue major changes in either tax or spending plans , saying of the increased revenue projections ,
Billions
Feb . 2020 Forecast
June 2020 Forecast March 2020 Forecast Nov . 2020 Forecast
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Billions
$ 70
$ 60
$ 50
$ 40
$ 30
$ 20
$ 10
$ 0
“ This is a pretty volatile time . I believe that it requires caution not exuberance .”
Even if general fund tax increases are avoided , employers and employees will not escape an escalating tax burden . The WRC has identified a series of payroll tax increases , including a potential average rate increase of 3.1 % for workers ’ compensation , an anticipated bump in the average unemployment insurance tax rate from 1.22 % in 2021 to 1.45 % in 2022 , and the new 0.58 % longterm payroll tax beginning in January . That last one is being challenged in court . Regardless of the pending lawsuit , lawmakers may make changes to the program to address flaws identified by AWB and others .
2001 - 2003
2003 - 2005
Fiscal Year NGFO Revenues
History and Nov . 2021 Forecast Adjusted for Inflation
2005 - 2007
2007 - 2009
NGFO Revenues
2009 - 2011
2011 - 2013
2013 - 2015
2015 - 2017
History
2017 - 2019
2019 - 2021
2022 - 2023
2023 - 2025
winter 2022 31