Washington State is once again facing a budget crisis. The economic woes of the Great Recession are hitting state revenues hard, with a projected shortfall of $2.6 billion.
In upcoming discussions and votes on a 2010-2011 supplemental budget, Washington lawmakers will be presented with a stark choice: raise new revenue – or cut thousands of jobs in the middle of a recession. Raising new revenue is a better choice for the people of Washington.
EOI’s latest policy brief, Creating Jobs and Boosting Our Economy, defines the explicit economic value of targeted revenue increases that support spending and save jobs. These include creative bonding measures to spur investments in infrastructure, expanding the tax base, and closing outdated tax exemptions. The evidence shows that doing so could save up to 30,000 jobs—helping us recover from the 44,000 jobs lost after last year’s budget cuts.
Even if federal aid comes through, Washington shouldn’t miss this opportunity to reform our tax system by developing more progressive taxes that encourage economic activity, funding core services, and supporting important public structures for the people of our state