December 27, 2008 - What Tax Breaks?

When it comes to budget crunches, conservatives traditionally tout increased efficiency and eliminating unnecessary spending as the first solution. According to the State Auditor, performance audits have identified 574 specific recommendations for $4.1 billion in short and long term cost savings. It’s now a proven strategy.

Tim Welch of the Washington Federation of State Employees says WSFE is suing the state because the Governor’s proposed budget doesn’t fund annual raises. Mr. Welch says not having enough money is no excuse, the state should find the money with the old liberal call for eliminating tax breaks for business. What tax breaks is he talking about? Is it the “tax break” that requires retail operations to play tax collector for the state without compensation? Requiring businesses to pay taxes on gross income whether they make a profit or not? Extending sales taxes to new categories of business? Does he really mean eliminating tax breaks or adding new taxes? Be specific, Mr. Welch.

Our businesses already bear a high tax and regulatory burden, stifling business formation and success. Mr. Welch had best be careful what “tax breaks” he’s talking about, before he kills the golden goose that pays for his union featherbed.