Patrick Connor gives an update on capital gains tax proposals.
The 2015 regular session of the Washington State Legislature limped to a close April 24, without resolution on two top priorities—the state operating budget and transportation budget.
A special session convened days later, but little progress has been reported. Budget negotiators appear to be awaiting an expedited revenue forecast, due out this week, hoping that higher tax collections will narrow the divide between the House and Senate spending plans.
The specter of a tax increase is still haunting the proceedings, however.
A capital gains tax seems to be gaining some traction as both chambers have heard bills on the topic over the past few weeks. The tax-writing House Finance Committee has twice held hearings on capital gains proposals, while the Senate Ways & Means Committee heard a trio of bills that would enact a state-specific capital gains tax. Each time, NFIB testified that nearly 80% of small business owners plan to finance their retirement from the sale of their business, according to recent data. Much of the proceeds from selling a business, particularly the real estate and value of its good will and customer base, would be subject to the new state capital gains tax, if enacted. During the Ways & Means hearing, Sen. Kevin Ranker said his intention was to exclude the sales of small businesses from his capital gains tax proposal. House Finance chair Rep. Reuven Carlyle has expressed similar sentiment, and singled out NFIB for being the only business organization to provide amendments to protect small businesses from the tax (click here for video).
NFIB was also lauded for its leadership on SB 5084, our All Payer Claims Database healthcare cost transparency legislation. Washington State Director Patrick Connor was given a rare opportunity to speak at the bill signing ceremony last week, along with Gov. Jay Inslee and Virginia Mason’s CEO. In his remarks, Gov. Inslee made a point of thanking NFIB for its work on this issue over the last two years (click here for video)
Connor’s remarks are available here.
More information about the All Payer Claims Database legislation and NFIB’s work with the Coalition for Health Care Cost Transparency can be found here.
