(The Center Square) – With end of the legislative session a week away, it appears that Democrats lack the votes, at least for now, to pass their income tax bill in the House of Representatives.
Senate Bill 6346, which would impose a 9.9% tax on income over $1 million, passed the Senate on Feb. 16.
Some Democratic members are holding back on endorsing the proposed income tax, waiting to see if a new version of the legislation, which could be released at any time, will be more to their liking.
SB 6346 supporters say it would generate roughly $3 billion annually to help address the state’s budget shortfall and to provide tax relief for small businesses and lower income families.
Rep. Amy Walen, D-Kirkland, told The Center Square she’s hoping a striker bill may include some of the ideas her alternate proposal suggested.
A striker, or striking amendment, is an amendment that removes everything after the title of a bill and replaces it with entirely new language.
Walen introduced a comprehensive tax reform proposal this session, but it did not get public hearing.
“There were several elements of difference between my bill and the income tax proposal from the Senate and the House,” she explained. “Mine had broad based sales tax relief, so it cut the sales tax rate from 6.5 to 5.75. And the whole thing would be null and void without a constitutional amendment. So, it was paired with a vote of the people.”
Walen said despite pressure from party leadership, she feels she has to stand up for the people in her district.
“It is hard to remember when you come down here, because the senior leadership are very progressive. I've sort of come to feel that I represent a lot of Washingtonians who have reservations about this policy,” she said. “I'm a small business owner. I'm one of the few in the Democratic caucus. I feel strongly that the people I work for are not the speaker of the house or the majority leader. The people of the 48th District sent me here to use my judgment.”
Walen said amending the state constitution and including the voice of the people is critical for her.
“I think we do need to enshrine those things in the constitution,” she noted, “so that we can build the trust of the voters that we're not going to come right back and increase the rates.”
Washington State Republican Party Chair Jim Walsh, who also serves in the House, told The Center Square on Friday that he is hearing there is growing interest among Democratic holdouts in the House for a version of the bill that amends the constitution.
“The governor’s version does not, but in this alternate version they are including a constitutional amendment and that’s key,” Walsh said. “Now I don’t agree with it, but it is procedurally the right way to go.”
Walsh said he thinks Gov. Bob Ferguson’s letter to supporters this week suggesting the bill may not make it out this year is “a head fake.”
“He doesn’t really think it won’t make it out this year. He’s just saying that as a way to kind of manipulate Democrat legislators to come together and support his version,” Walsh said. “The governor has put all his chips behind his version of this state income tax and if he doesn’t get it this year, it’s a major political loss for him.”
Walen said if the bill doesn’t pass this session, she hopes members will spend some time meeting with their constituents to hear their concerns.
“Our members need to go have an honest conversation with their constituents and learn about how this will affect people who are fishing, or in timber, or farmers,” she said. “Let our members go out and do their homework and come back, and we can make a really good income tax transition plan that gives us property tax reform, sales tax reform, and B&O [tax] reform. And let the people have a voice.”
