August 11, 2008 - 1:02pm
News

Eek, an income tax!

Only six other states don't have one. And why not?

The first call for an income tax came in 1929 - during the first Progressive era. Although it passed the legislature, it was shot down by the state Supreme Court, and the B&O tax on business receipts was created in its place.

Later, in a 2002 report to the Legislature, a panel headed by Bill Gates Sr. listed all of the advantages of a state income tax, including:

  • it's deductible from federal taxable income for those who itemize;
  • it provides for growth in tax revenues commensurate with the growth in the demand for state government services;
  • it allows a more progressive tax system;
  • it is based on one measure of ability to pay − income;
  • it is efficient because it has a broad base and a low rate;
  • it allows for a more competitive tax structure relative to other states; and
  • it would allow a reduction in our very high and very regressive property tax.

That report to the legislature was promptly shelved, and discussion of an income tax continues to be a legislative taboo. Why? Because it's political suicide.

In the theater of politics, the expedient and the easy often trumps the realistic and the necessary. And that's why no one - especially not Governor Chris Gregoire - will be advocating for a Washington income tax anytime soon.

And we will continue to balance the budget on a regressive, unstable, two-legged stool.

WALLY EDGE can be reached via email at politickerwa@aol.com.

Comments

State Income Tax


Washington is getting "tax fatigue." If we had a State Income Tax it would be 10% sales tax and 10% (or more income tax). My opponents are pushing hard for it--that is how they want to pay for all of the big spending they want to do!

08/12/08 3:19 pm

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