$700 million in new state taxes are coming

Some $700 million in new state taxes are on the drawing board of Governor Christine Gregoire, according to members of her staff.

Facing a $2.6 billion budget deficit, the governor is depending on $1 billion in federal aid to help cut the amount.  Currently a $700 billion new stimulus package is making its way through Congress, with most of  it dedicated to help state and local governments.

That still leaves the state with a $1.6 billion deficit.  Members of the governors staff have said they expect to make $900 million in cuts and fund transfers, but the remaining $700 million will have to come from increased state revenues, in otherwords, new taxes.

What form these new taxes will take are still being kept quiet until the legislature meets in January.   But, new taxes are definitely on the way.