Robin's Ruminations

Most people are aware of the budget problems besetting the State of Washington.  What you may not be aware of is that once again Olympia is looking to tax its way out of the budget deficit in large part on the backs of small business.

The state Senate is proposing a .25 increase in the B&O tax (an income tax on business) as it applies to businesses in the service category (that's you and me).  If accepted the B&O rate we pay will increase from the current 1.5% of gross income to 1.75%.  Another way of looking at this is to view it as a 16.7% tax increase (.25 is one sixth of 1.5).

The state House of Representatives, not to be out done by their colleagues in the Senate, are proposing a .5 increase in the B&O tax.  If accepted this will move the rate for businesses in the service category from 1.5% to 2.0%.  This is a 33.3% increase (.5 is one third of 1.5)!

I've written my Democratic legislator and let her know she has lost my vote.  I've also let her know that my employees will know why they aren't getting a raise this year.  I'm a centrist voter.  Depending on the topic I've voted for both parties.  But this time I strongly suspect my next ballot will be a party line vote for the Republicans.