This week Representative Chris Reykdal and Senator David Frockt released the Higher Opportunity Promise for Education (HOPE) Act.
The Act fundamentally restructures Washington’s tax code and dedicates funds in the process for higher education. Reykdal and Frockt frame the need for such a proposal by focusing both on the need for more Washington students to attend and complete higher education and the need to restructure the state’s tax structure.
The intention is that by addressing the need for greater participation in higher education and changes in the tax structure the state would be able to dedicate funding to universal access to higher education and fully fund current financail aid obligations, free up funds in existing state resources for other purposes, and restructure the state’s tax code as follows:
- Completely eliminate the State B&O Tax
- Reduce the sales and use tax from 6.5% to 5%
- Broaden the new 5% sales tax and use tax to all personnel and professional services
- Create the Higehr Opportunity Promise for Education Income Tax at 1% on adjusted gross income and corporate gross profit.