Amazon and Microsoft Could See Huge Tax Hike in Inslee’s Budget
Amazon.com and Microsoft have sent in the “big guns” to try to head off part of Gov. Jay Inslee’s proposed budget.
Washington state is facing a $1.5 billion budget deficit and Inslee wants to raise hundreds of millions for education. His solution? Eliminate 25 percent of the “Business and Occupation” tax break given to businesses in the state.
From MSN Money:
The bill on the table right now would narrow Business & Occupation (B&O) and sales tax exemptions for import commerce. The technology sector would be hit the worst, as the Democrats seek to narrow the high-tech research & development (R&D) B&O credit and repeal the R&D sales & use tax exemption.
This would especially hit investors in the two big companies that call Washington state home. Amazon’s profits were not as healthy as Microsoft’s in the last year.
Critics are asking if the tax hike would result in layoffs.