Tax Breaks Were Instrumental in Reaching State Budget Deal
As part of a new budget deal, Republican and Democratic lawmakers approved 16 tax breaks that are worth an estimated $13 million. These breaks in taxes would aid restaurants, mint farms, nonprofit gun clubs, beekeepers, and international investment firms.
These exemptions in taxes were necessary for Senate Republicans to agree to end current tax breaks for residential phone service that they expect will net around $85 million by 2015.
Rep. Reuven Carlyle of Seattle says, “In addition to ending the tax break for phone service, Democrats also got an agreement to set expiration dates on tax breaks, and to disclose the value of future exemptions. The only way we were able to get the bill through was because of that.”
The new breaks in taxes will open opportunities to create jobs and stimulate the economy.
The House and Senate approved the operating budget on Friday. The breaks in taxes are contained in a separate measure, Senate Bill 5882; both cleared both chambers with large majorities.
Senate Democratic Leader Ed Murray, D-Seattle, said “Tax breaks can serve a useful purpose. Tax loopholes we absolutely need to close, but there are tax incentives that I think are valid. (In the past) we closed the tax loopholes for banks, but we gave one to newspapers and the dairy industry … Not every tax break is necessarily bad.”
Some of the tax breaks that were approved just extended exemptions that were due to expire. The beekeepers one alone is worth $120,000 over two years.
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City Council to Raise Taxes on Pot Club
The City Council of San Jose is deciding to pursue an increase taxes on marijuana to add revenue on the revenue. The decision of the City Council was supported by the residents and city staffs. There are different reasons why people agreed on the tax hike on pot club. According to the statement of a resident, even if marijuana is being used as a medical alternative for treating several illnesses, other individuals especially youths can’t control their selves to abuse it. This is why the number of marijuana addicts is increasing rapidly. With the tax hike on pot club, the percentage of marijuana addicts may reduce because not all teens or youths can afford to purchase pricey items.
The tax hike is not yet implemented, but as soon as everything is settled with the taxes involved, the implementation process will start immediately. Though there are other people who are against with the said tax hike, the City Council explained that this will not just benefit others, but also, this can benefit everyone who is living in the state. The staffs in the committee also added that this may improve the lifestyle in the community. That’s why people who are against it have nothing to worry about.
After the City Council decided to increase taxes on marijuana, there is a legal precedence made and set to regulate or ban marijuana businesses. But, this can be prevented if the taxes on marijuana will increase. The process of implementation of the marijuana tax hike is still on-going in order for them to avoid flaws once the tax hike was implemented.
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Vehicle Owners Request for Reduction on Gas Taxes
Because of the increasing rates on gas taxes, vehicle owners have requested for reductions on the gas taxes in order for them to save extra money from purchasing gallons of gasoline to fuel up their vehicles.
The issues of vehicle owners about gas taxes are not a new issue. Ever since the tax gas started to increase, taxpayer advocates and other people who are affected by the sudden boost of tax gas, were already aware and disturbed about the increasing gas taxes. The government and some professionals that deal with such issues on tax have already taken some actions to prevent or reduce gas tax. However, the actions and solutions made are not enough to stop the increasing taxes on gas. That is why many people are requesting for transparency about how taxes are calculated when it comes to gas.
The reduction and transparency on gas tax is still in the process. Although the government can’t just lower or reduce the tax on gas instantly, legislators and staffs of the committee that handle the issue are finding some ways on how people can save money from buying gas. These temporary solutions are not yet implemented, but there were numbers of people who are suggesting purchasing hybrid cars and other fuel-efficient tools or machines to avoid paying a huge amount of money when buying gasoline on different gas stations. There are also some who recommended using public transportation rather than using their own vehicles when travelling from one place to another.
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