Dem's State Budgets Include Cap. Gains Tax, Drain Reserve Funds

An analysis of the State Democrat House and Senate Budget proposals by Opportunity WA could result in one drawing the conclusion that they're ignoring the economy.

According to a comprehensive look at both proposals, they incorporate an 'assumed' 7 percent capital gains income tax, and both drain down the state's rainy day emergency fund.

Both budgets increase state spending about ten percent. The House Democrats call their plan "Washington Recovery Plan" yet it's centered on the following (according to House Democratic releases):

"...operating budget plan that utilizes state and federal funds to help us recover together by centering people most impacted by the pandemic and prioritizing needs of Black, Brown, and Indigenous communities that have suffered the most health, economic, and education impacts and face the most barriers to recovery."

There's nothing in there about the private sector economy, which is what led to a lot of growth, pre pandemic, in WA state.

Senate Democrats, meanwhile, said this: (from Opportunity WA by way of Senate Democrats webpage):

"increase funding for vital state services, including targeted support for the state’s pandemic recovery efforts and historic investments to support Washington’s working families.

"The 2021-23 operating budget proposal also leverages an additional $7 billion in one-time federal funds from the American Rescue Plan to bring relief to struggling households and help the state emerge from the pandemic with a stronger safety net and a more resilient public health system."

However, business owners, especially small to medium business, and most middle class families will never see a dime of this relief money, as it's filtered through the "equity lens" that starts with Gov. Inslee and filters down into the Democrat legislators in both chambers. We've already seen that with the paltry Working Washington grants and loans, which have benefitted less than 5 percent of all small businesses in our state.

And, the plans both rely on the implementation of an un-Constitutional capital gains income tax, which Opportunity WA says is clearly not wanted by Washington residents.

These budgets mirror what has been apparent from Gov. Inslee and the majority parties in the Olympia, the tone-deaf response to what will produce real and healthy economic post pandemic recovery: the private sector and small business economy.

Perhaps some legislators should be looking at these tips and applying it to their political proposals.

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