Sales tax extension to services is likely

Tax increases are on the way according to Troy Nichols, state director of National Federation of Small Business (NFIB) which represents about 8000 businesses in the state.

“After the budget cuts came out from the House and Senate budget, there’s lots of push for a tax increase,” Nichols told the Lacey Chamber of Commerce at its regular monthly meeting Wednesday.   “All of the advocates for schools and social services  have made the legislative leaders promise to send out a tax increase to the voters.”

Nichols said several tax increases are on the agenda including the extension of the state sales tax to services.  “There aren’t a lot of options for tax increases,” he said.  “Sales tax extension is one that they are looking at seriously.  It will be in the mix.”

But, Nichols said, this is not the time to be raising taxes on small business, which comprise about 90 percent of the state’s businesses.   “Small business got us out of the last recession and it’ll get us out of this one as well,” he said.

The NFIB head said it was important for small business to be involved and interested in national business issues.   He pointed to card check as one example.  “Increased unionization raises the cost of labor.  And when the cost of labor goes up, everything we need to operate our business, goes up as well.”

He pointed out however, that card check is more important to the rest of the country than it is in Washington state, saying we have 20 percent of our work force unionized while it’s only about 7-8 percent nationwide.