OLYMPIA, WA – Washington lawmakers and Gov. Bob Ferguson disagree about how to address the state’s $16 billion revenue shortfall.
The House and Senate have both passed budgets which would tax wealthy residents and corporations in order to balance the budget.
In contrast, Ferguson’s plan cuts social programs and furloughs employees to save the state $7 billion.
Jeffrey Gustaveson is an organizer with Firelands Workers United, an advocacy group for rural Washingtonians. He said he supports lawmaker’s efforts to make the tax system more fair.
“They’re saying we should support working people,” said Gustaveson, “and we’re going to unlock new sources of money by increasing taxes on giant corporations, and some of the wealthiest human beings in the face of the planet.”
As budget negotiations move forward, Ferguson called relying on untested taxes irresponsible. Lawmakers have until April 27 to finalize a budget acceptable to the Governor.
David Henson, a retired veteran and volunteer for Firelands, highlighted what’s known as the Tax on Wall Street, which would apply to people who own stocks and bonds worth over $50 million.
Democrats say it would generate about $4 billion a year for the state.
“But it only affects 4,300 people in the state of Washington,” said Henson. “They only pay 4% — where we’re paying, on average, 14% of our income on taxes. I don’t think it’s robbery.”
Ferguson says his budget does not include reductions to vital services. But, Gustaveson countered, the governor’s definition of vital is narrow.
He said a 6% cut from all state agencies will harm many services Washington residents rely on including healthcare, housing, and transit.
“There’s a very clear message, I think, from the public right now,” said Gustaveson, “that they support public programs and they support funding those public programs with fair taxes.”
Democratic lawmakers say their proposed taxes would generate $17 billion over two years, bringing the state out of the red.