1. Thanks to our Sponsors Sprague Israel Giles Inc. Finney, Neill & Co. P.S.

2. Overview Why we tax Legacy of the Great Recession Immediate options Structural problems Options for reform 2

3. Three Key Points Taxes uphold shared public values Short-term revenues needed urgently Structural flaws must be addressed 3

4. Three Key Points Taxes uphold shared public values Short-term revenues needed urgently Structural flaws must be addressed 4

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6. Three Key Points Taxes uphold shared public values Short-term revenues needed urgently Structural flaws must be addressed 6

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8. Short-Term Options Continue 2010 tax increases Property tax options Eliminate tax breaks General tax increases 8

9. Three Key Points Taxes uphold shared public values Short-term revenues needed urgently Structural flaws must be addressed 9

10. Systemic Revenue Problems Inadequate Upside down 10

11. Systemic Revenue Problems Inadequate Upside down 11

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14. Systemic Revenue Problems Inadequate Upside down 14

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16. Structural Revenue Reform Sales tax on consumer services The Working Families Tax Rebate Capital gains excise tax 16

17. Structural Revenue Reform Sales tax on consumer services The Working Families Tax Rebate Capital gains excise tax 17

18. Structural Revenue Reform Sales tax on consumer services The Working Families Tax Rebate Capital gains excise tax 18

19. Structural Revenue Reform Sales tax on consumer services The Working Families Tax Rebate Capital gains excise tax 19

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21. What we propose A state excise tax on capital gains Tax rate = 6.5% Exempt first $10,000 in gains Use federal definitions 21

22. Impact $700 million per year Only 2% of Washingtonians Won’t impact retirement savings Won’t impact home sales 22

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24. Three Key Points Taxes uphold shared public values Short-term revenues needed urgently Structural flaws must be addressed 24

25. Stay Connected @budget_policy www.facebook.com/budgetandpolicy Sign up for email updates at: www.budgetandpolicy.org 25 Andy Nicholas, Senior Fiscal Analyst andyn@budgetandpolicy.org

26. Thanks to our Sponsors Sprague Israel Giles Inc. Finney, Neill & Co. P.S.

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