capitol watch
The Legislature has grappled with each of these tax proposals for several years , but lawmakers of both parties have refused to pass them .
“ There is no doubt calls will get louder to repeal tax preferences and enact new taxes before negotiations begin in earnest later in the session ,” said Eric Lohnes , AWB government affairs director for tax and fiscal policies . “ But , such a shortsighted action could make a ripple of its own — losing aerospace and other high-paying jobs , which hampers tax collections , and creates the uncertainty that scares off potential companies that may see our state ’ s tax code as unpredictable .”
And , if the state Supreme Court weighs in , it may deem the governor ’ s tax proposals inadequate to meet the stable and reliable threshold for K-12 funding purposes .
environment , climate and cap-and-trade tax
Touted as a new source of revenue for state government programs and services is the governor ’ s carbon tax proposal .
Billed as a tax on industry , the fact is consumers of energy , fuel and natural gas will pay higher prices at the pump and to heat their homes . Employers will be forced to pass the higher costs onto customers , raising prices for all Washingtonians .
And , it will likely be viewed by employers as a piling on with the looming state Department of Ecology Clean Air Rule , which has the potential to damage the economy and impact jobs in the state ’ s coveted manufacturing and energy sectors .
“ Washington employers are already leaders in carbon reductions and energy efficiency without costly new tax and regulatory structures ,” said Brandon Houskeeper , AWB government affairs director for climate and environmental policy . “ As one of the greenest states in the nation , Washington employers have demonstrated that they share the values of a clean environment and resource conservation .”
As much of a longshot such a tax may be , and whatever happens , it has now landed squarely in the middle of the K-12 education funding debate .
“ As one of the greenest states in the nation , Washington employers have demonstrated that they share the values of a clean environment and resource conservation .”
— Brandon Houskeeper , AWB government affairs director for climate issues
k-12 education , workforce development and higher education
The crux of the tax and budget debate is financing local property tax levy reform . But , putting more money into schools without benchmarks for student outcomes is something that raises concern among the business community .
“ Employers are the consumers of the education system and they need it to perform in a way that fills a skilled workforce pipeline and closes the sizeable skills gap facing Washington businesses ,” said Amy Anderson , AWB government affairs director of education and workforce issues .
“ This session will be very challenging with regard to taxes and spending . Employers should brace for more complex and controversial policies to arise .”
— Gary Chandler , AWB vice president , government affairs .
at a glance
The 2017 legislative session is scheduled to last 105 days . It is the session in which lawmakers craft the two-year state operating budget .
The governor released his budget plan Dec . 14 which included new and higher taxes he said will raise nearly $ 4.3 billion , purportedly for K-12 education spending , including : A new capital gains tax on high-income residents , new and untested carbon tax , closure of five tax preferences ; and , a 1 percent Business and Occupation tax increase for service-sector businesses .
Billed as a tax on industry , a carbon tax would raise prices on consumers of energy , fuel , natural gas as well as goods and services .
An October 2016 Boston Consulting Group and Washington Roundtable study found there will be 740,000 job openings in Washington state in the next five years , many of them requiring workers with a postsecondary education or training .
In addition to K-12 education , the budget and taxes , AWB ’ s government affairs team is watching labor and workforce issues , water storage and access issues and the health care changes that could come about with a repeal of the Affordable Healthcare Act .
AWB is engaged at the federal level on trade issues , including the Trans-Pacific Partnership and filling the last spot on the U . S . Export-Bank board , a critical piece to growing Washington state and the nation ’ s exports .
Members should contact AWB Vice President , Government Affairs Gary Chandler at 360.943.1600 to learn more about how they can engage and share their voice on public policy .
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