Analysis Complete for House Bill 1681
Office of the Governor / Office of Financial Management sent this bulletin at 05/13/2019 03:48 PM PDT
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HB 1681, titled AN ACT Relating to funding the working families tax exemption by imposing a surcharge on publicly traded companies providing excessive executive compensation, 10 year analysis is complete.
The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.
Ten-year projection:
|
Fiscal |
B&O tax surcharge |
Public utility tax surcharge |
Total |
|
|
|
||||
|
2020 |
$ 21,800,000 |
$ 135,000 |
$ 21,935,000 |
|
|
2021 |
54,400,000 |
334,000 |
$ 54,734,000 |
|
|
2022 |
56,600,000 |
346,000 |
$ 56,946,000 |
|
|
2023 |
59,000,000 |
358,000 |
$ 59,358,000 |
|
|
2024 |
62,100,000 |
370,000 |
$ 62,470,000 |
|
|
2025 |
65,200,000 |
384,000 |
$ 65,584,000 |
|
|
2026 |
68,500,000 |
397,000 |
$ 68,897,000 |
|
|
2027 |
72,000,000 |
411,000 |
$ 72,411,000 |
|
|
2028 |
75,700,000 |
425,000 |
$ 76,125,000 |
|
|
2029 |
79,600,000 |
440,000 |
$ 80,040,000 |
|
|
Total: |
$ 614,900,000 |
$ 3,600,000 |
$ 618,500,000 |
|
ESD is not responsible for collecting any taxes or fees to administer this program. In order to conduct an effective ten-year projection, there is a requirement to obtain data that ESD is unable to procure given the time constraints of this analysis.
First, data on CEO pay as a ratio of employee median income would need to be pulled from Dodd-Frank filings. Data would need to be extracted from filings from each of the state's nearly-8,000 companies that file with the SEC. Given enough time, a data pull of this nature could accurately project the number of CEOs that meet the criteria described in Sec. 3 of the bill.
Second, data related to each company's tax liability under chapter 82.16 RCW is necessary. The Department of Revenue likely has access to this data, but a sharing agreement would need to be established between the two agencies for the purposes of this analysis.
Once access to these data sets is available, an effective ten-year analysis may be conducted by ESD.