We call for a cut to the state sales tax rate.
Let's Unite Washington to cut the state sales tax!
Washington's sales tax was first imposed in 1935 at a rate of 2 percent. It is now 6.5 percent and has not been cut since 1982. Each tenth of a percentage point reduction in the state sales tax rate would be hundreds of millions of dollars in tax relief. Today, Washington state has never been in a stronger position to provide broad-based tax relief with a cut to the state sales tax rate.
Despite more than two years of pandemic-related economic shutdowns and restrictions as well as record inflationary pressures, Washington state tax revenues continue to thrive and are now expected to exceed $10.5 billion dollars over projected levels. Lawmakers could modestly reduce the sales tax to 6.0 percent, provide billions in tax relief, and still leave billions in reserves plus funds available for other targeted spending increases all while complying with the four-year budget outlook.
Further, our state received an influx of COVID-related federal dollars. Washington state caseloads are down. State spending is already way up and the governor and the legislature already approved mid-contract raises for state employees. Washington’s tax revenue growth has outpaced the nation since 2015 and our tax revenue has grown 39.4 percent since 2008 while the 50-state average tax revenue growth was 15.9%.
While other states have provided relief in the wake of the pandemic, among states with a revenue surplus, Washington state alone has refused to provide broad-based tax relief.
A tax cut would help those who have suffered hardship under COVID restrictions, it would immediately reduce the burden on low and middle-income families, and it would help relief for all feeling the sting of inflation.
The surplus state revenue provides more than ten billion reasons to give the people of Washington tax relief. If the people cannot be given relief now, when will we ever see it?
Add your name to WPC's list of Washington citizens calling for broad-based tax relief and a cut to the state sales tax rate!