OLYMPIA, Wash. - State House Democrats want to raise about $760 million in taxes by closing a long list of exemptions and collecting more money from smokers, banks, lawyers and accountants.
It's the latest of three competing tax proposals floated by state leaders as they try to balance a $2.8 billion budget deficit.
The House's five-part plan is heavy on closing tax exemptions. That includes sales tax exemptions on bottled water, candy and gum, and custom software.
It would also increase business taxes by half a percent for service providers such as lawyers and accountants.
Gov. Chris Gregoire and Senate Democrats have already put different tax plans on the table. The House, Senate and governor will now have to hammer out an agreement.
Gregoire said she likes the House version better because it stays away from a general sales tax increas.
Republicans have argued all session that the budget can be balanced without raising taxes.
"It's $858 million our economy cannot afford," said Rep. Ed Orcutt, R-Kalama.
One of the common tax increases found in all of the tax proposals raises the tobacco tax $1 for every pack of cigarettes.
Smokers currently pay just over $2 a pack in taxes for cigarettes.
"I don’t think it's fair at all," said Cassandra Johnson, of Lacey.
Johnson, 19, said she's been smoking since she was 13.
She figures she spends about $100 a week on cigarettes and said she does not know if she can afford to smoke if the tax is raised one dollar.
"It would probably get me to stop smoking," said Johnson.
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