Freshmen House Democrats call for tax code changes

Published 2:12 pm Wednesday, February 29, 2012

OLYMPIA — Washington state’s freshman House Democrats on Wednesday called for wide-ranging changes to the state’s tax code, from creating a state capital gains tax to eliminating the out-of-state sales tax exemption.

At a press conference, more than a dozen lawmakers said the measures are necessary to make the state’s tax system more equitable and stable.

“Our fundamental problem in this state, in terms of revenue long-term, has to do with fairness, adequacy of resources and stability of the resources that we bring into this state,” said Rep. Laurie Jinkins, D-Tacoma.

Washington is one of eight states that don’t tax capital gains and the only state exempting out-of-state consumers from its sales tax, lawmakers said.

A bill championed by Jinkins to enact a 5 percent tax on capital gains over $10,000 per year per couple was being heard Wednesday in the House Ways and Means Committee.

A measure to end the nonresident sales tax exemption was heard by the same committee last week.

That measure would bring in an estimated $26 million in additional annual tax revenue, which would be put toward paying for full-day kindergarten programs.

Both measures need two-thirds support in both the House and Senate, which means that majority Democrats would need Republican votes in support.