Inslee: Democrats’ proposal for new taxes now off the table in state budget talks
OLYMPIA, Wash. (AP) — Gov. Jay Inslee says closing some tax exemptions should be the compromise that the House and Senate consider in order to reach a budget agreement quickly and avoid a partial government shutdown.
Inslee said Friday that a new capital gains tax that had been proposed by House Democrats is now off the table, and he said that the middle ground for both sides would involve closing exemptions to address the estimated $300-350 million difference between both chambers’ budgets.
House leaders said Friday that they are still working on a list of potential exemptions that could address the gap, and Senate Republicans confirmed that they are open to that approach.
A new two-year budget must be signed into law by midnight June 30 or else dozens of state agencies could completely or partially close and more than 26,000 workers would be furloughed, according to the state Office of Financial Management.