Washington - Republicans say budget surplus justifies repeal of estate tax

YAKIMA HERALD-REPUBLIC

Republicans are seeking to repeal the estate tax passed last year, saying it's hurting small employers and family-owned companies.
"I said last year our state treasury didn't need the revenue the death tax would provide, and the revenue forecasts are proof," Rep. Ed Orcutt, R-Kalama, said in a news release Tuesday.

House Bill 2841 would essentially roll the clock back, eliminating the additional tax adopted in 2005.

Gov. Christine Gregoire has said she does not support a repeal of the tax, which was used to fund Initiative 728 requiring small class sizes and other educational programs. Orcutt said the state's budget surplus of $1.45 billion is "more than enough" to pay for I-728 commitments.

Orcutt also is prime sponsor of House Bill 2672, which would give employers until the 25th of each month to pay their business taxes.

"A few years ago the deadline was changed to the 20th, so the state could deposit the money sooner and collect extra interest. But just as there's enough revenue to allow a repeal of the death tax, there's enough to return the tax payment deadline back to the 25th," Orcutt said.