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Tax Reform Proposal in Washington State Aims to Balance Revenue without Increasing Taxes

Rep. Chris Corry

The Proposal for a Shift in Tax Strategy

In response to Washington state Democrats' push for a significant increase in property taxes to boost revenues for cities and counties, a new proposal from the Republican minority presents an innovative approach aimed at protecting taxpayers while enhancing municipal revenue. Representative Chris Corry of Yakima, a Republican, advocates for a method that avoids raising taxes altogether. He argues against the Democratic proposal, allowing local governments to hike property taxes by 3% annually, surpassing the current 1% cap. This move, Democrats argue, is necessary to generate additional funds.

Corry's counter-proposal, outlined in House Bill 2336, suggests a different route. The bill aims to reduce the state sales tax by one-half percent, permitting local governments to introduce a voter-approved one-half percent sales tax increase. According to Corry, this strategy is designed to be net-neutral for taxpayers, emphasizing the importance of fiscal responsibility against the backdrop of the state's $3-billion budget surplus. He underscores the need to empower local cities and counties to fund mandates imposed over recent years without resorting to significant tax hikes.

The Debate over Housing Affordability and Fiscal Management

The proposed tax shift comes when Washington grapples with a housing affordability crisis. Democratic Majority Leaders, when questioned about the issue, highlighted the desire for budget predictability among residents. Joe Fitzgibbon, a Democrat from Burien, pointed out the paradox in public reactions to property tax increases versus rent hikes, indicating a broader discussion on fiscal policy and housing costs.

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Corry's proposal offers a balanced solution by providing direct tax relief and enabling local governments to independently raise funds without seeking state assistance. This approach, he argues, can address local financial challenges while respecting the state's considerable budget surplus. His bill, referred to the House Local Government Committee, awaits a hearing, with a looming deadline that underscores the urgency of the debate.


You can access further information through the original article on The Center Square for a detailed understanding of the legislative proposals and ongoing debate.

This development in Washington state reflects a broader conversation on tax reform, fiscal responsibility, and the government's role in managing revenue and public services. As lawmakers weigh the merits of different approaches, the outcome could set a precedent for how states balance the need for revenue with taxpayer protections.

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