Ferguson did not cite any specific taxes he dislikes in the proposals that House and Senate Democrats viewed as the linchpin for completing their negotiations on an operating budget that overcomes a projected $16 billion shortfall over the next four years.
While there have been lots of numbers thrown around about the size of the state’s budget shortfall, the reality is that the state has a spending problem, not a revenue program.
In Washington state alone, the agency says that more than 35,000 have yet to claim an estimated $33.7 million in unclaimed refunds from the 2021 tax year, with the median refund being $880.
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.
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.
