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News / Northwest

Wash. House debates tax plan hitting service biz

The Columbian
Published: March 19, 2010, 12:00am

OLYMPIA, Wash. (AP) — House Democrats are debating their newest plan for raising about $800 million in taxes.

The updated House package does not include a state sales tax. Instead, it raises about $200 million with a temporary tax hike on service businesses, ranging from lawyers to barbers.

The new plan is based on a compromise proposal offered by Democratic Gov. Chris Gregoire.

It’s different from the state Senate’s plan, which relies on about $200 million in a temporary sales-tax increase.

The House, Senate and governor need to find agreement on a tax plan before the Legislature can patch its $2.8 billion budget deficit and end its current special session.

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