Spokane Income/Capital Gains Tax (Seattle: sales, maintenance, income tax)

[Frank Morris]

Hi everyone,

Researching the Spokane area for relocation and trying to get a handle on the state and city's current prospects on passing either income tax or capital gains tax specifically. I understand that Seattle just passed a city income tax, but that it's already being challenged, with a strong history of not supporting income taxes. I also understand state voters overwhelmingly rejected a measure to implement an income tax back in 2010. Finally, I'm seeing evidence that there was a proposal this year for a 7.0 or 7.9% capital gains tax, but am seeing that it didn't make it into the final budget proposal this year.

So, questions for you:

1) What is the perception you sense in the community for the likelihood that WA will have an income tax or capital gains tax at some point in the future?

2) If the Seattle tax stands and wins the legal battle, do you see Spokane as attempting to pass a local income tax as well?

Of course, nobody can predict politics, but I'm trying to get a sense of what the community wants. Is there a sense that an income/capital gains tax is inevitable at some point, or a sense that people don't want it, and it's just a push by a select few that will likely never happen?

[Yeledaf]

I really don't have enough money to be worried about any particular future tax policies (plus I'm older'n dirt, which makes it highly unlikely that I'll be significantly impacted). My two cents on this issue is that Washington residents tend to resist the notion of a state income tax out of suspicion that instead of supplanting our assortment of other relatively high taxes and fees, the income tax will simply be imposed on top of them.

After all, when is the last time any government reduced or eliminated a source of revenue?

Having said that, there is no doubt that an income tax is much less regressive than the astronomical taxes in our state on sales of non-food goods, gasoline, alcohol, and other commodities, which tend to disproportionately affect less affluent citizens.

If only our politicans would make an ironclad, good-faith promise to eliminate/reduce current rates of taxation on staple commodities in return for the imposition of a state income tax.

And if only the moon were made of camembert. Then we could have tasty hors d'oeuvres 24/7/365!

[Frank Morris]

Thanks Yeledaf - is your sense, then, that a statewide income and/or dividend tax is likely, if unwise? Or do you think the culture in Washington State would likely prevent that from happening? Do people value no income tax, and do you think they'll continue to support keeping no tax?

What about in the Spokane area - do you think Spokane would try to pass an income tax if Seattle gets away with it?

[Boxkicker]

Do you know the amount of the local income tax that Seattle is proposing?

Not many people in Spokane make $250K nor families make $500K.

I wouldn't even give it a second thought of Spokane doing something similar.

[Frank Morris]

Originally Posted by Boxkicker

Do you know the amount of the local income tax that Seattle is proposing?

Not many people in Spokane make $250K nor families make $500K.

I wouldn't even give it a second thought of Spokane doing something similar.

My understanding from the language of those who implemented the tax was that it was expected to be challenged, for the purpose of setting up as a test case for broader income tax reform - likely statewide, and I'd assume beyond just a top tier tax. In other words, a gateway tax.

In terms of your Spokane comment, would you say that Spokane might consider a city income tax, but with a lower income threshold?

[Yeledaf]

Originally Posted by Frank Morris

Thanks Yeledaf - is your sense, then, that a statewide income and/or dividend tax is likely, if unwise? Or do you think the culture in Washington State would likely prevent that from happening? Do people value no income tax, and do you think they'll continue to support keeping no tax?

What about in the Spokane area - do you think Spokane would try to pass an income tax if Seattle gets away with it?

The likelihood of a state income tax is remote, given the general level of distrust felt by the citizens toward politicians. The same for a local income tax in Spokane, though I certainly believe that our current city council is slathering at the thought of additional monies flowing ther way, and will be only too willing to once again follow Seattle's lead, should that scenario come to pass. Monkey see, monkey do.

[Boxkicker]

They have tried many times to have a statewide income tax and it always gets shot down.

[elkotronics]

Think of the Spokane potholes that could be filled with some of that tax money flowing into their eastern War-shing-ton coffers. Yes-yes-yes-yes!

[Yeledaf]

Originally Posted by elkotronics

Think of the Spokane potholes that could be filled with some of that tax money flowing into their eastern War-shing-ton coffers. Yes-yes-yes-yes!

Seriously. I've done my share of traveling, both in the US and overseas (wow -- sounds like the opening lines of a song!), and, with the exception of rural Mexico, have never seen streets so uneven, out of plumb, badly patched, and in poorer general condition than Spokane's. It is unfortunate that we do not have a local media source willing to hold our alt-left city council accountable for mundane things like street design, maintenance and repair, as opposed to issues like gender-neutral restrooms and the right of panhandlers to urinate in public.

[Frank Morris]

Thanks everyone for weighing in - sounds like few think it's a possibility, though a few also think it might be a good idea.

Yeah, sounds pretty terrible to pay such a high price on gas taxes and get so little in return.