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House Democrats release latest budget plan, call for ending several tax breaks

by caprecord

The House Appropriations Committee on Monday held a public hearing on the latest Democratic budget plan, which does not include new taxes but would raise about $356 million by closing several tax breaks.

Lead Democratic budget writer Rep. Ross Hunter said Monday the plan does not represent an agreement with Senate Republicans, but is a “move to keep our negotiations moving forward.”

Democrats are no longer calling for a capital gains or other new taxes to pay for increased spending on early learning, mental health and other programs. Hunter said the latest budget represents only “what you can actually buy and pay for” without new revenue.

It makes the minimal expenditures required to comply with K-12 education spending for McCleary, mental health lawsuits and other settlements, Hunter said. It also freezes college tuition for a year and pays for state worker raises. Read the summary here.

House Majority Leader Pat Sullivan said in a news release the budget is a “backup plan designed to meet the very basic needs of the state and avoid a shutdown.” State government would be forced into a partial shutdown if a budget is not adopted by June 30.

Democrats are also proposing House Bill 2269 — which Sullivan called “Plan A” — to close or limit several tax breaks to raise additional money for education. Bottled water would no longer be exempt from sales tax, a preferential business-and-occupation tax rate for resellers of prescription drugs would be eliminated and a tax break for extracted fuel would be narrowed.

Revenue of about $356 million from closing the tax breaks would pay for additional teacher cost-of-living raises, more early learning spots and increased funding for the state’s colleges and universities.

Republican Sen. Doug Ericksen of Ferndale criticized the plan, saying it still amounts to a tax increase. “They say they want to close tax loopholes. But I think the people of Washington see though it and understand these are taxes on things they need in their daily lives,” he said.

TVW aired the public hearing — watch it here. The committee is scheduled to vote on the plan on Tuesday.

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