We can save over $200 million by closing a tax loophole on investment income. We currently exempt earnings from interest, dividends or capital gains for non-financial firms' B&O taxes. This exemption creates an incentive to invest in the stock market instead of investing in Washington. It is poor public policy to tax income from producing goods and services, while exempting investment income.
Washington could save over $20 million by ending the B&O tax deduction that favors private schools. Under current law, private schools can exempt their income from tuition fees, room and board, library, laboratory, or health services, and other special fees.
Private schools are a fine educational choice, but our top priority is funding public schools. Private schools do not need their own special tax break.
DEFINITIONS Tax exemptions are state government programs legislated and executed by the state, funded by the taxpayers, currently unbudgeted because they are delivered using a different method. According to Washington State Institute for Public Policy, "Tax exemptions in Washington are defined statutorily as an exemption, exclusion, or deduction from the base of a tax; a credit against a tax; a deferral of a tax; ...more »