Big tax cuts planned in many states. Washington appears to be an outlier. Again.

The Hill reports that across the country, governors and legislatures are looking at cutting taxes.

State lawmakers preparing to convene legislative sessions in the new year are confronted with a scenario unlike any they, or most of their predecessors, have ever experienced: budgets that are flush with cash after a year of record-setting surpluses.

The influx of new money, fueled by a quick economic recovery from the coronavirus pandemic and billions in emergency federal funding for state and local governments, has spurred new talk of significant tax cuts. Across both blue states and red states, and just in time for midterm elections, legislators and governors are making plans to lower rates and cut bills.

Washington is among the cash-flush. But as Jason Mercier, who also notes The Hill report, points out the governor is not looking at tax relief

Last week, however, Governor Inslee made it clear a sales tax cut wasn’t on his agenda (his 2022 supplemental budget comes out next week). When asked by Everett Herald political reporter Jerry Cornfield about the huge increases in the revenue forecast and whether he’d propose a reduction in the sales tax to help low income Washingtonians, the Governor said he “doubts” that will be one of his proposals (40:21 mark).

Last session, Washington was also a bit of an outlier, as The Hill reports.

A dozen states this year introduced measures to reduce corporate or personal income rates, and a 13th — Arkansas — will consider cutting rates in a special session. Another half a dozen states added tax exemptions for federal stimulus money or unemployment payments or reduced property and service taxes.

“Income tax cuts were the main trend we saw this year, and that looks like it will continue to be a trend going in 2022,” Loughead said.

The governors of Minnesota and Wisconsin proposed tax increases, but both signed budgets that ultimately cut taxes. Only five states — Florida, New York, New Jersey, Washington and Missouri — raised or created new income or sales taxes.

Washington, of course, passed the controversial capital gains tax. Mercier in another post helpfully provides links to briefs filed in the lawsuit challenging the tax

Also, legislation has been introduced to repeal the state’s long-term care tax.

Should be an interesting session next month.