Washington’s quarterly revenue forecast in June showed yet another huge increase in tax revenue. This is $2.6 billion more than was previously expected when lawmakers wrote the 2021-23 budget earlier this year. We now have $2.6 billion reasons for lawmakers to finally provide broad-based tax relief to Washingtonians.

While the majority party in our state was busy imposing an unconstitutional capital gains income tax this year, lawmakers across the country were instead working to provide significant tax relief as revenue projections nationally rebounded from previous concerns related to the COVID economic restrictions.

Consider these recent tax cut headlines from our neighbors:

•From the California governor’s office on May 10, “As California roars back Governor Newsom announces largest state tax rebate in American history.” According to the announcement, two-thirds of Californians are set to benefit from Golden State Stimulus checks amounting to nearly $12 billion in total.

•From the Portland Oregonian on May 19, “Oregon kicker rebate of $1.4 billion? Tax revenues up $1 billion in ‘stunning’ forecast.” The article says, “Oregon taxpayers would receive their share of the kicker as a credit against their 2021 taxes when they file next spring. The size of the rebate would be based on how much tax they paid the state when they filed their 2020 taxes this year.”

•From Idaho Gov. Brad Little on May 12: “Idaho achieves single largest tax cut in state history.” According to the announcement, “Combined with another tax conformity bill earlier this session, Idaho achieved more than $435 million in tax relief for Idaho citizens—the single largest tax cut in state history.”

Though they’ve enacted some targeted tax cuts in recent years (including finally funding the working family rebate), Washington’s lawmakers have not shown interest in broad-based tax relief. Hopefully, June’s $2.6 billion increase in the revenue forecast will be just the shot in the arm they need to reduce the state’s sales tax the next time they meet.

For example, for each 0.1% reduction in the state sales tax rate, approximately $306 million in tax relief could be provided. This means lawmakers could cut the sales tax rate by 0.2% and still have approximately $2 billion left over from the June revenue forecast increase.

When it was first imposed in 1935, Washington’s sales tax rate was 2%. It is currently imposed at 6.5% and has not seen a rate reduction since 1982. June’s massive revenue forecast increase provides a great opportunity to start reducing the state’s sales tax rate.

Sen. Lynda Wilson, Republican leader on the Senate Ways and Means Committee and a member of the state Economic Revenue and Forecast Council, offered this statement about the June forecast: “If the Legislature is going to have a special session this year, let’s make it about easing the tax burden on families, workers and employers, instead of adding to the string of majority tax increases.”

I couldn’t agree more.

Washington should also make national headlines by providing broad-based tax relief. If not now, when?

Jason Mercier is the government reform director for Washington Policy Center, a nonprofit, nonpartisan research organization with offices in Spokane, Tri-Cities, Seattle, and Olympia. WPC is online at www.washingtonpolicy.org.

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