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Updated Nov 19, 2009 - 1:18 pm

State budget gap zooms to $2.6B

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Washington's Legislature will likely raise taxes and cut spending to fix a $2.6 billion state budget deficit.

That's the word from Olympia, where the state economists are predicting weaker tax revenue for the next year and a half.

Gov. Chris Gregoire will release her new budget proposal next month. Gregoire says she's open to higher taxes to help bridge the gap.

Top Democratic lawmakers say that's got to be part of the plan. Sin taxes and closing tax loopholes are squarely in their sights. But they say general tax hikes on sales and business revenue are probably the last resort.

Republicans warn that going to the tax well now is a bad idea, with the economic recovery still fragile.

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Comments (4)
  • Add A Comment

  • HLC wrote...
    Tax hikes?
    Sshow me a taxacrat that isn't open to tax hikes and I'll show you a dead one. Where have I heard that Now Is Not The Time To Talk About Raising Taxes? I guess that was just during the interview. Right Govenor?
  • AJ McCarrell wrote...
    Message to Chris Gregoire....
    There's a concept called "price elasticity of demand". Study the effects of tax hikes on pricing and apply the concept. See what happens....
  • Informed wrote...
    Great job Dems
    Hey top notch job your doing there Gov. Will you make us the next New Jersey.
  • Mickey Abbott wrote...
    Can you repeat that Chris?
    Christine Gregoire:

    "I won't raise taxes in tough economic times.” “We're not going to be raising taxes."

    Dino Rossi:

    You and I have a bull's-eye on our backs, because she's going to raise our taxes to solve the problem.”

    What was that Chris? Ever think about reducing spending to match income?


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