Should WA try for a state income tax again? (Seattle: sales, crime)

[travis t]

Just to note--I put this in 'Seattle' instead of 'WA' because this forum seems to be much more active. Anyway, as we all know, all the votes needed to win state-wide are what you can see from the top of the Space Needle.

Even though state revenue has gone steadily up, it's still not enough. Schools across the state are seeing shortfalls. Seattle projects a $45 million deficit for this year. Many schools are in disrepair, with garbage cans being placed under leaking ceilings to catch rain water.

Gov. Inslee has said he needs several billion in spending to save the orcas. Let's face it, the state taxpayer is going to be on the hook for several hundred million in cost overruns from the tunnel project. From what I've read, the contractors have a strong track record of winning court fights about overruns.

Initiative 1098 in 2010 would have imposed an income tax, but failed 64-35%. But in the 8 years since, I believe WA has grown significantly more progressive. Gun control initiatives used to fail by 70%; now they pass by 60%. I credit an influx of Californians and whip-smart millennial tech workers.

With the right approach, I believe that an income tax could now be passed. Washington is one of only 7 states with no income tax. In other words, 86% of states have seen the wisdom and virtue of a state income tax. What do you think?

[USDefault]

No. A million times, no.

In other words, 86% of states have seen the wisdom and virtue of a state income tax.

Translation: corrupt politicians from 43 states steal labor and resources from their citizens; those states with the highest income taxes also have the biggest debt problems and the worst balance sheets in the United States (Illinois, New Jersey, California, Oregon).

[travis t]

btw, a quick note on the federal income tax, which was first enacted in 1913 after the 16th Amendment was ratified. The initial rates were very low, which was a major aspect of the sales pitch for the new tax.

Numbers seem to be very confusing, but as best I can tell, those under $20,000 annual income were exempt. That is $507,000/yr in 2018 money. $507K-$1.2 million/yr. (inflation adjusted) got you a 1% rate. The top rate of 7% was for a married couple making over $12.6 million/yr. (inflation adjusted).

Obviously only the extremely wealthy were affected, and even for them, tax rates were not painful.

I believe a state income tax could be enacted with the same strategy. Start with low rates that apply only to the super-rich, and gradually increase rates over time to bring more taxpayers into the fold.

[thatguy950]

Why would anyone be dumb enough to want an income tax?

[fnh]

I think an income tax that gets progressively higher is the best and fairest way to fund a society that looks most like the years of greatest American prosperity and economic growth - the mid-20th century. Tax rates then were much, much higher, exceeding 90%! But these are marginal tax rates, which most of the public does not comprehend.

We are a high income family and would gladly pay more if it means our children would get to live in a broadly prosperous and content society. As it is, years of tax cuts (even before the most recent and grotesquely irresponsible tax cut for the wealthy) have led to terrible erosion of public goods and services, gaping inequality, and overall a society that better resembles third-world countries than the previously-great American democracy.

[mhays25]

Some people's patriotism stops when money is involved.

But even then the concept wouldn't be MORE money, it would be about a fairer way to bring in the same amount.

[pnwguy2]

In my mind the bottom line is this: One of the main reasons why growth is so strong in Washington State is because of the lack of a State Income Tax. It becomes a driver of the economy to attract new workers. Pure and Simple.

That said, Washington already has one of the highest sales taxes in the country, and local communities certainly can and have added on to it. I would only consider a State Income Tax if there would be a guarantee of major cuts in the sales tax. That will never happen.

No income tax in Washington!

[eugene_b]

I am a strong “no” on the income tax idea. My experience living in high tax states as well as friends working for those state governments and the stories I’ve heard through them have left me with a very bitter attitude towards the idea. I do like the idea of paying more to make it a nicer place to live for everyone, I just don’t think income taxes are the right way to go about it. I am not sure what a good approach would be. May be dedicated taxes with specific milestones? E.g. “fix schools tax” that collects taxes specifically for that purpose and which has specifics about what is expected to happen by when and if it doesn’t happen, tax automatically gets cancelled. Otherwise I’d rather keep my money and keep donating it towards the non-profits which produce the results I like.

[bergun]

Oh geez!! If you are a high income earning family and are willing to pay more taxes, please feel free to write a check to the State's Treasury at anytime since there is nothing stopping you from being that "progressive." Sorry, my income doesn't allow me to be too "progressive" since it barely covers the taxes, registrations and other fees that come with living in the Seattle area... Believe it or not, the working class is struggling to even live in the metro area anymore.

For the life of me, I can't understand why people who fled California with all its "progressive" taxes are now wanting to turn Washington State into another California.

I say heck no to an income tax AND let's be honest, it may start off with the rich, but after they flee and establish a new State of Residency, to avoid paying this income tax, they will come after the working middle class to fund all the new "progressive" ideals... Seriously, who here trusts the State government and the political class with a massive amount of incoming cash?? Heck, they're doing such a swell job here in Seattle with the drug, crime and homeless problems with all the extra taxes they collected over the past few years... For a quick reality check, walk between Yesler and cherry on either 2nd Ave or 3rd Ave AFTER 7pm.

I know that all the "elitist" now living in Western Washington feel that they have the right to think for all of us "commoners," since we're simply too stupid to think for ourselves. It wasn't too long ago that people listened to all the "great ideals" and "promises" made, here in Seattle, which was to make everything great... The reality of all these "great ideals" and "promises" is that most of the working middle class no longer can afford to live in OUR city and now are forced to move outside of the city limits to either the north or south... Just to live... In return, we are now spending more time traveling to and from work, while spending less time with our families AND being more stressed out.

...Please don't help me or think for me. We don't need anymore empty promises from the elite and political classes.

[Blindtom]

Originally Posted by travis t

btw, a quick note on the federal income tax, which was first enacted in 1913 after the 16th Amendment was ratified. The initial rates were very low, which was a major aspect of the sales pitch for the new tax.

Numbers seem to be very confusing, but as best I can tell, those under $20,000 annual income were exempt. That is $507,000/yr in 2018 money. $507K-$1.2 million/yr. (inflation adjusted) got you a 1% rate. The top rate of 7% was for a married couple making over $12.6 million/yr. (inflation adjusted).

Obviously only the extremely wealthy were affected, and even for them, tax rates were not painful.

I believe a state income tax could be enacted with the same strategy. Start with low rates that apply only to the super-rich, and gradually increase rates over time to bring more taxpayers into the fold.

It is difficult to go from no tax to some tax. It is much easier to go from some tax to some more tax. Once a tax is pushed through the door, there is always more behind it.