man documenting taxes at desk

Seattle Searching for Tax Cuts & Hikes

The city of Seattle is looking for ways that it can use taxes to benefit everyone in the city limits, and they have brought forth some proposals that will help the city build a more efficient government. Plus, the city wants to be sure that they can serve the whole population by making these changes to their tax code.

1. Taxes Are Rising On Large Businesses 

Taxes are being raised on specific types of large businesses including: tech companies, those in the computing sector, and those with large occupancy. Tax hikes are meant to raise funds over the next two years in three sectors where the state will ask for more money from companies that work in these fields. There are many companies (with a great deal of real estate) and it is important that these companies are taxed fairly so that Seattle tax cuts can be given to the rest of Seattle’s people.

2. Why Is It Necessary To Raise Taxes?

The state and the city want to see taxes rise on the people and businesses that have the money to pay these taxes. It is very important for people to have a look at where they are on the tax bracket, and they can judge how much their taxes will rise based on the revenue that they have secured. Most people who are trying to learn about tax increases will find that they can make much better decisions when they know where they fall in the new plan. The new plan is easy to understand, and it allows regular people to save money, especially when selling a house.

3. The House Tax

The house tax is going to drop as a part of this new plan. People who are selling their homes will find that they need to take steps to pay a small tax on the price of their home. However, these people are not overly-taxed at the end of the year like they were in the past. This is a very big difference for people who have concerns about their year end tax return, and it would be smart for these people to check on the limits of this tax.

4. What Does The Tax Change Pay For?

The state is trying to balance their tax revenue between the common people and the businesses in the state. Washington state knows that they have many tech businesses, and these companies have the money to pay higher taxes. Plus, the people of the state deserve to spend less money when selling a home. These tax changes make it possible for many people in state of Washington to save money at the end of the year while the largest businesses can pay their fair share. 

In the current climate today, there are many people who are upset about how little money corporations pay in taxes. These tax changes will help make the state of Washington a much more equitable place to live. This state has been progressive because of the leadership of the city of Seattle, and the state wants to be sure that they can make the right people pay the most taxes every year when they can afford it.

About the author

Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.