Chief
01-26-2008, 06:04 PM
http://seattletimes.nwsource.com/html/politics/2004144376_taxcredit25m.html?syndication=rss
OLYMPIA — State Democratic leaders are pushing a sales-tax break for low-income families that could put as much as $470 in their pockets next year.
Around 350,000 households in the state would be eligible for the proposed break, which calls for the state to provide a 10 percent match to people who qualify for the federal Earned Income Tax Credit.
"This is literally a tax cut for people who need it most," said Sen. Craig Pridemore, D-Vancouver, the lead sponsor of Senate Bill 6809.
The measure, introduced Thursday, quickly gained support among Democrats, even though by one estimate it could cost the state $120 million per biennium.
Democratic leaders have repeatedly vowed to be frugal this year and set aside at least $1 billion of a projected tax surplus in this year's budget as a buffer against recession.
House Speaker Frank Chopp, D-Seattle, said Thursday he hopes to pass the tax refund this session. "No question. I love this idea," he said.
However, Chopp said the souring economy could put a brake on the proposal. "We support the idea. We're just concerned on the budget side to make sure we ... can potentially afford it," he said.
Senate Majority Leader Lisa Brown, D-Spokane, also supports the proposal. "So far, everyone I talk to in my caucus is pretty excited about the concept," she said.
The prospect of a recession could actually give the legislation a political boost, Brown said, noting that it "ties in well with the concepts that are being spoken about in terms of stimulus at the federal level."
Congressional leaders announced a deal with the White House on Thursday on a package that would give most tax filers refunds of several hundred dollars beginning in May.
The families who'd get money from the proposed refund "would spend it very quickly," Brown said, "because they just have bills to pay."
However, Washington residents would not be able to apply for the credit until next year under the current bill because it's expected to take several months for the state to set up a system to handle the paperwork involved.
Symbolism over substance.
God help us!
:rolleyes:
OLYMPIA — State Democratic leaders are pushing a sales-tax break for low-income families that could put as much as $470 in their pockets next year.
Around 350,000 households in the state would be eligible for the proposed break, which calls for the state to provide a 10 percent match to people who qualify for the federal Earned Income Tax Credit.
"This is literally a tax cut for people who need it most," said Sen. Craig Pridemore, D-Vancouver, the lead sponsor of Senate Bill 6809.
The measure, introduced Thursday, quickly gained support among Democrats, even though by one estimate it could cost the state $120 million per biennium.
Democratic leaders have repeatedly vowed to be frugal this year and set aside at least $1 billion of a projected tax surplus in this year's budget as a buffer against recession.
House Speaker Frank Chopp, D-Seattle, said Thursday he hopes to pass the tax refund this session. "No question. I love this idea," he said.
However, Chopp said the souring economy could put a brake on the proposal. "We support the idea. We're just concerned on the budget side to make sure we ... can potentially afford it," he said.
Senate Majority Leader Lisa Brown, D-Spokane, also supports the proposal. "So far, everyone I talk to in my caucus is pretty excited about the concept," she said.
The prospect of a recession could actually give the legislation a political boost, Brown said, noting that it "ties in well with the concepts that are being spoken about in terms of stimulus at the federal level."
Congressional leaders announced a deal with the White House on Thursday on a package that would give most tax filers refunds of several hundred dollars beginning in May.
The families who'd get money from the proposed refund "would spend it very quickly," Brown said, "because they just have bills to pay."
However, Washington residents would not be able to apply for the credit until next year under the current bill because it's expected to take several months for the state to set up a system to handle the paperwork involved.
Symbolism over substance.
God help us!
:rolleyes: