Wash. leaders split on sales tax hike for budget - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Wash. leaders split on sales tax hike for budget

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OLYMPIA, Wash. (AP) - State leaders are split over the idea of a sales tax increase to help balance Washington's $2.8 billion budget deficit.

Senate Democrats want to raise the sales tax three-tenths of a penny. But Democratic Gov. Chris Gregoire doesn't like that approach. And House Democrats still haven't settled on a tax package.

Legislative leaders are revealing their dueling budget-balancing plans Tuesday in Olympia.

The House version would cut less from state spending, and seek fewer tax hikes than the Senate version. Instead, House Democrats want to rely more heavily on one-time fund transfers and federal money.

The Senate's budget plan calls for specific tax hikes, including the temporary sales tax increase and more than $500 million in closed tax exemptions.