Proposed business tax hike could increase daycare rates

Lawmakers in Olympia are looking for new ways to generate money for schools, and raising taxes on businesses like daycares is on the table.

A proposed tax increase could make daycare more expensive for parents in Washington.

House Democrats have proposed raising taxes 20 percent on businesses grossing more than $250,000. 

Budget writers said approximately 80 percent of businesses in the state would not be impacted, but Lacey’s Mini-Skool would face higher taxes under the proposal.

“These taxes get passed down to the parents,” Mini-Skool Director Mugsy Schumacher said.

She said the school has already raised tuition rates twice in the last year to cover cost of living increases and a minimum wage hike.

Schumacher said rates would go up again if the proposal passes. She said the school would also have to turn away state subsidized low-income students to help pay for the increased taxes.

“There are so many unintended consequences to keep adding taxes and burdens to childcare facilities like ours,” Schumacher said.

Rep. Kristine Lytton (D-Anacortes) said the House chose tax increases that would not unfairly target the middle class.

The proposal released in March would create a capital gains tax for the top investment earners in the state and increasing taxes on businesses.

Lawmakers are trying to come up with billions of new dollars for schools. 

"The money has to come from somewhere,” Lytton said, “We have a significant hole to fill.”

The State Supreme Court is holding lawmakers in contempt for not fully funding education. 

The budget proposal passed by Senate Republicans last month relies on a new state property tax to pay for improvements to schools.

Lytton said that approach would unfairly impact property owners in the Puget Sound region.

© 2017 KING-TV


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