Institute for Research in Economic and Fiscal issues

IREF Europe - Institute for Research in Economic and Fiscal issues

Fiscal competition
and economic freedom

The Washington State Senate is desperately trying to fill the budget gap with new taxes

The Washington state Senate approved a tax package that would raise $890 million over the next sixteen months.

The tax package includes a temporary three-tenths-of-a-cent sales tax increase plus increased taxes on services and bottled water. It also ends a sales tax break for some companies based outside Washington. On a separate vote the Senate voted to add an extra $1-per-pack tax on cigarettes.

Then leaders will have to agree on a final revenue package to close a $2.8 billion budget gap.

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