The Washington Retail Association joined a coalition of state retailers and business associations last week in a letter urging Congress to pass a law closing the current Internet tax loophole.

The Legislature passed a joint resolution last year in support of the same tax reform WRA and the business coalition seek in the letter to the state’s Congressional delegation.

In short, pending federal legislation would force online retailers to collect sales taxes, which would level the competitive marketplace with traditional brick-and-mortar retailers who do collect the tax. The pending bills would require online retailers to collect the tax and remit it to the local and state governments where sales were being completed. read more »

A VAT (value added tax), which is a national sales tax assessed at each stage of production, is being considered by Nancy Pelosi and other leaders in Congress. This week I have been talking with our national partners to see if they have the inside story on its potential. Their answer is that it is simply too early to tell.

The likelihood of any decisions about the deficit will wait until after elections. But this early announcement of political leadership’s interest in a VAT tax can serve the Congressional leadership well. read more »

I listened as people testified on the impacts of the House tax proposal. Two rooms had to be set aside for the crowds that came to town. Lobbyists were not allowed to testify until as many others could speak in the two-hour hearing.

As the hearing came to a close most legislators said they were not happy about the situation. But in the end, the tax bill passed out of committee on a party-line vote. Class sizes trumped jobs. read more »

State Auditor Brian Sonntag offers state legislators an important reminder this year to help solve the mounting budget problems the state faces.

As legislators convene on Jan. 11 to begin addressing the state’s $2.6 billion revenue shortfall, a new report from Sonntag’s office should remind legislators that resorting to tax and fee increases should be far from the only ideas they discuss. read more »