Washington’s wealthiest individuals, largest corporations and biggest banks are prime targets. Homeowners, vapers and self-storage unit renters are among those who could share in the burden. Possible tweaks to expand the state’s capital gains tax could also be in play.

Gov. Bob Ferguson said at a news conference he would not sign any spending plan dependent on substantial revenues from a new and untested tax that faced the “real possibility of being overturned.”

The governor presented $4 billion in new reductions at the end of February and said he supports another $3 billion in savings former Gov. Jay Inslee proposed in December. This scrub is Ferguson’s first step in addressing an operating budget deficit that Democratic lawmakers say is roughly $12 billion over the next four years. Ferguson pegged the number higher, at $15 billion. 

Tax Day is only weeks away. Learn updates about what to expect, including how you may be able to get a bigger refund.

Every new law, rule and tax layers on further costs, making it harder for employers to create jobs, or even stay open.

The total revenue generated from the capital gains tax in the 2023 tax year is down 47% over the previous year. In Benton County, the decline in tax payments was even steeper. 

The state tax credit provides up to $1,290 per year to taxpayers that qualify for the federal Earned Income tax credit.

The AARP Foundation is providing free tax assistance and preparation through its Tax-Aide program at sites around the Tri-Cities.

Raising taxes now would only make it more difficult for businesses to compete with other states and regions, and more difficult for many of the state’s smallest businesses to survive. 

The new law eliminates the windfall elimination provision and government pension offset that for decades had reduced the amount some Americans receive in Social Security benefits.