Bill Would Wipe Out B&O Tax

Four out of five businesses in Washington state could be in for a nice surprise soon. Dan Frizzell from the Washington State House Democratic Caucus has more.

LYTTON: “Small businesses are struggling across our state, and what I hear over and over is their struggle with paying B&O, that it’s an unfair tax because it taxes on the gross instead of taking into consider what it actually costs to run a business.” 

That’s state Representative Kristine Lytton.  The Anacortes Democrat chairs the House Finance Committee, and this week she introduced legislation that would eliminate the B&O tax for 80 percent of the businesses in Washington state. Another 14 percent would pay what they currently do, and the top six percent — which includes some of the biggest businesses not just in Washington or the U.S., but the world — would see a surcharge on their taxes. Lytton says her bill is revenue neutral, meaning the total revenue would be the same, but thousands of small businesses would suddenly see a boost in their bottom line.

LYTTON: “This really about small businesses, small business entrepreneurs trying to start up, and helping our communities be successful.” 

Lytton’s bill, officially dubbed the Small Business Tax Fairness Act, could go before the full House within a few days.  In Olympia, I’m Dan Frizzell.