Friday, January 22, 2010

Maybe - Tax in your future?

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Gov. Chris Gregoire stance, in both her 2008 re-election campaign and in the 2009 lawmaking session, was death on taxes. Now? She’s willing to at least believe it next winter.

The Democratic controlled Legislature, at her assertion, closed a $9 billion budget gap this year without general tax hikes or a tax referendum to the voters. But as the state economy continues to sputter, lawmakers face an additional gap of $750 million to $1 billion, due to sagging tax receipts and higher demand for services. Gregoire has no particular tax proposal, and is looking for a new round of spending cuts. But she tells reporters she has signaled to legislative leaders she’s open to them creation a case for fresh revenue, believing voters may be fed up with budget cuts.

Minority Republicans still suggest downsize government a little more. Senate budgeter Rodney Tom tells The AP that “sin taxes,” such as on tobacco, might be an option, and some lawmakers may tout a temporary sales tax surcharge. The tax package might be referred to the electorate — dicey in a 2010 election year where all 98 House seats and half the Senate seats are on the ballot.

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