Dental update from Dr. and Rep. Michelle Caldier

Dear Friends,

Every year, the House and Senate take turns which chamber releases their state budget proposal first. This year, it was the House majority's turn, which is the House Democratic Caucus.

The House Democrats released their proposal for the 2015-17 operating budget on Friday. Contained within is funding for a great deal of worthy programs, as well as $1.5 billion in tax increases. While you may hear about the programs proposed to be funded, I want to share with you my concerns about the tax increases I believe will affect us as dentists.

First, House Democrats propose a new capital gains tax - Washington does not currently have such a tax. This means if your capital gains are more than $25,000 in a year individually or $50,000 for a couple, you will pay a five percent tax on this to the state. This is, of course, in addition to gains taxes and income taxes you pay the federal government and in addition to B&O taxes you pay the state.

Speaking of your B&O tax, which is unfairly based upon gross receipts instead of net profits, House Democrats also want to increase your B&O tax rate as well. Right now, you pay a 1.5% tax rate. This proposal would increase that by 20% to 1.8% of your gross receipts. This means if your practice has a gross income of $1 million in a year, your taxes will increase from $15,000 to $18,000. If you have a very small business that brings in less than $100,000 annually, you would be exempt. But most dental practices gross more than this and would be affected.

With constantly increasing medical costs, and ongoing complications with coverage from insurance companies, these added costs will negatively affect our practices and our patients. I encourage you to contact the members of the House Appropriations Committee and House Finance Committee to oppose these tax increases. Share your stories, why you serve your community, and the impact these tax increases will have on you.

Sincerely,

Michelle Caldier

State Representative Michelle Caldier
26th Legislative District

E-mail: michelle.caldier@leg.wa.gov 
Web site: www.representativemichellecaldier.com

417 John L. O'Brien Building - P.O. Box 40600 | Olympia, WA 98504-0600
(360) 786-7802 or Toll-free: (800) 562-6000