Tax Loopholes, Or Incentives? WA Legislature Struggles

One side views them as loopholes, chances for businesses to "avoid" paying taxes, or as high a tax as certain groups would like to see.  The other side views them as incentives...who's right?

State Senator Mark Schoesler (R-Ritzville) discussed in his weekly Legislative E-Commentary several bills being discussed in Olympia on whether to "close tax loopholes" to add revenue to help shore up the billion plus dollar shortfall in Washington State's budget coming up in June.   Schoesler says the loophole argument comes from those who see the state's revenue issues as a result of a shortage of tax revenue, rather than too much government spending.   Schoesler pointed out this week these so-called "loopholes" were originally passed by a majority of the legislature (bi-partisan) as incentives designed to keep businesses from fleeing the Evergreen state for venues such as neighboring Idaho, who have much less tax burdens.   Schoesler talked about this controversial topic on the most recent edition of TVW,  Washington state's public network, on the "Inside Olympia: Show.   According to data from Senate Republican Ways And Means Leader Joe Zarelli from January 2010,  Businesses in WA are not taxed on profits as most states, they are taxed on gross receipts (before their operational costs are paid); and Washington has the second highest small business failure rate in the US.