State government will collect nearly $1.5 billion more in taxes than expected in the current two-year budget cycle. But inflation will likely wipe out that gain, a government watchdog group says.

Total revenues for the 2021-23 budget are projected to be $63.2 billion. And the 2023-25 budget would be nearly $66 billion, the state's Economic and Revenue Forecast Council said Wednesday during its periodic update on expected future tax collections. But the inflation surge applies to state government, too.

“These gains, however, are totally erased by increases in the forecast for inflation,” Kriss Sjoblom of the Washington Research Council wrote. “When adjusted for inflation, the apparent $2.3 billion gain becomes a real $1.2 billion loss.”

Meanwhile, Washington employers and families continue to battle high fuel prices, rising food costs, a tight housing market and ongoing challenges in the supply chain. Editors at The Columbian say it's time to consider tax relief.

“Property tax relief, a sales tax reduction, and a reduction in the business and occupation tax all should be on the table,” a recent editorial says.

Contact Government Affairs Director Tommy Gantz to learn more and get involved.