For each of the last six years, the state has collected more in general fund revenue than it has spent. On the one hand, this pattern is commendable: better to be in the black than in the red. Yet the substantial growth in the state’s budget surplus over this period (expanding from $234 million to $900 million or more) reveals another pattern: Washington state has repeatedly overtaxed its residents and businesses.
Last year Washington voters approved Referendum 49 by a wide margin, thereby reducing the state tax burden by about $130 million per year. Even after taking into account the impact of Referen-dum 49, our analysis concludes that antici-pated revenues and the current surplus more than justify a further tax cut.
Read the full Policy Note here
