What do you all think of I-1098? (Vancouver, Camas: sales, purchasing)

[specificnorthwest]

what do you all think of I-1098, specifically with regards to how it may impact businesses & individuals looking to relocate here?

[cdelena]

Big mistake.. here are comments from a company that was planning to move to Washington...

'Finance firm’s CEO says an income tax on wealthy would influence decision
The first of two planned Fisher Investments office towers has started rising out of the ground in west Camas. But executive Ken Fisher said Friday he would not move his company of 1,155 employees to Clark County unless Washington’s voters soundly reject Initiative 1098...'

Just a matter of a short time before our incompetent statehouse finds a way to expand the tax as people look elsewhere for a sane place to live.

[eskercurve]

I honestly don't know how I'll vote on this proposal. My initial reaction is "sure, why not? Most of these people can afford it, and many many of these individuals have come out to speak for it."

But then I think that the state has services for everyone, not just the rich. Education, law enforcement, infrastructure, etc. are all used by everyone. So, it would only be fair for everyone to pay something. It could be a ladder where the rich pay a certain percentage and the number goes down as you go down the ladder.

I personally do not think it will influence how a lot of wealthy individuals will decide to live here or not. The numbers we're talking about here are small compared to their incomes and our tax system allows them to shelter their wealth pretty effectively anyway.

[DBM]

cdelena --

Be wary of any anecdote or even data coming from the Vancouver area. Businesses and individuals take advantage of the differing tax structures on either side of the Columbia River. On the Oregon side, there are state income taxes, but no sales taxes; on the Washington side, there are sales taxes, but no state income tax. What you get is a warped live/work combination, as more wealthy individuals live and "locate" their businesses on the Washington side (particularly if they're about to sell that business for a profit), but do all of their shopping on the Oregon side. The situation is an open invitation for tax avoidance ("cheating" if you want to be critical) and needs to be addressed, but in the meantime it really shouldn't be used as evidence for the rest of the state to base its taxation decision on.

[cdelena]

I live in Clark county and am very aware of the border crossing from both sides for financial gain.

I am also very familiar with Fisher Investments that is currently California based and has been investing in a sizable office park in Vancouver. The whole motivation is to relocate to save the top staff from income tax while investing in tailored headquarters offices that are cost effective and close to a major airport. An income tax on top earners kills the entire plan. This is not about sales tax.

1098 will make Washington very unattractive to business.

[Ira500]

I'm voting for 1098. Most states have an income tax, and many of these states have corporations and businesses headquartered there and they do very well. I would have preferred it 1098 included a reduction in the sales tax, but it does reduce property tax and the business and occupation tax.
If it were a 40% tax on the rich, I'd see that as very onerous, and would feel that something like that would drive businesses away. 1098 calls for a 5% state income tax for those individuals making 200,000 dollars per year or more.
Why tax the rich? Because they're the ones with the money.

[kanhawk]

I hope the income tax fails. A history of states that have adopted an income tax in recent years shows after the tax was enacted, state spending increased significantly.States without the income tax have seen healthier economies and more job creation than states with the income tax.
Also, I believe this tax will eventually be expanded to the middle class. The original federal income tax was sold as a tax only on the very wealthy of the time, the oil and railroad tycoons and would not affect the middle class. How did that work out?
Washington in one of only a few states left that doesn't have an income tax. That's a good thing, not a bad thing. Let's keep it that way.

[eskercurve]

I voted for the income tax, BUT I wlil be watching the legislature LIKE A HAWK. If they even hint at the possibility of the notion of expanding the income tax to the middle class, or even the upper middle class, PFFT, dead on arrival, gone, I'll start the initiative to repeal it.

[CarlB328]

The wealthy have driven the cost of living up too high for many Washingtonians (like me) so I have no pity for them paying 2% more. Did they ask for our input before they drove the cost of housing through the roof destroying many peoples lives? No, they did not.

[j_k_k]

Originally Posted by eskercurve

I voted for the income tax, BUT I wlil be watching the legislature LIKE A HAWK. If they even hint at the possibility of the notion of expanding the income tax to the middle class, or even the upper middle class, PFFT, dead on arrival, gone, I'll start the initiative to repeal it.

Might as well start the planning now, because if it passes you'll get your hint. Nothing remains true to its original purpose. I remember when the lottery was started, and the naysayers were told it was purely to be used for education. The legislature really thought people were stupid enough (and I have come to see they were correct) not to realize that if you earmark money for something in the legislature, and you were already spending money on it, the earmark means nothing except a guaranteed minimum because the earmark enables you to play a shell game with the other money. Same objection as to giving Federal money to faith-based charities. For public consumption: "We will use this only to build schools in Ghana!" Privately: "Great! The 10% of our church budget we spent on that can now be cut to 5%. We can spend that other 5% pimping our social causes and pressuring people to convert. Cha-ching, Lord!"

Thus, the slippery slope argument is in play with this one. The legislature would never repeal a source of tax revenue, so this will only grow. And as inflation (which will return) lowers the dollar's purchasing power over time, people will grow into it while their standards of living remain the same or decline. The alternative minimum tax was one like this, and sure enough, before long the middle class had joined. Jack the sales tax up to 10% if you have to, but none of this income tax crap.