Washington State Tax Fact #17: I-884 Will Cut Sales Revenue by One Percent

As the election approaches, Washingtonians should remember that the billion dollar I-884 tax hike would seriously hurt Washington’s economy. In fact, the state Office of Financial Management estimates that I-884 would reduce taxable sales by one percent in the Evergreen State. That means less economic activity and fewer jobs in Washington.

Sales will drop primarily because an average of $115 will be taken out of the pockets of every Washingtonian— money that could otherwise be spent creating jobs. Furthermore, shoppers will have even more reason to go to sales tax-free Oregon or the Internet.

The end result is that Washington would lose an estimated 10,000 jobs if this tax hike is passed, including many in the retail, hotel, travel, and tourism sectors. Because the state unemployment rate of 5.6 percent is already higher than the national average, the Evergreen State can ill afford to lose even more jobs.

The bottom line: the 1-884 15.4 percent increase in sales taxes is bad economic policy.

For more information, please visit http://www.freedomworks.org/washington