OLYMPIA — House Democrats have approved their newest plan for raising taxes to help balance the state budget.
The updated House package is based on a compromise offered by Democratic Gov. Chris Gregoire. When paired with a separate cigarette tax, the House tax package would raise about $790 million through June 2011.
It does not include a state sales tax. Instead, it raises about $200 million with a temporary tax hike on service businesses, including lawyers and barbers.
The new House offer is different from the state Senate’s plan, which relies on about $200 million in a temporary sales-tax increase.
The House, Senate and governor need to find agreement on a tax plan before the Legislature can patch its $2.8 billion budget deficit and end its current special session.