Tax fight crescendos in Washington Legislature

The Washington state Senate approved a $12 billion tax package aimed at addressing a looming budget shortfall. The legislation includes significant measures, such as expanding the capital gains tax and increasing corporate taxes, which are expected to raise approximately $3. 2 billion in the next two-year budget. Senate Bill 5814, which applies the retail sales tax to additional services, is projected to generate $2. 9 billion in the upcoming budget and $4.

7 billion over four years. The House Finance Committee advanced further components of the tax package, including a permanent business tax rate increase and a new sales tax on self-storage units. Governor Bob Ferguson has voiced concerns, labeling the package "unsustainable" and calling for a balanced approach to revenue and spending. He met with Democratic leaders but did not specify which components he opposed. Senate Majority Leader Jamie Pedersen indicated that discussions with the governor aligned with their revenue approach.

The outcome of the tax measures depends on House approval and Ferguson's potential endorsement.