Spokane7
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March 5, 2010 in City
Income tax put forward
Short-notice Senate proposal targets higher incomes
OLYMPIA – Senate Democrats may offer voters a choice: a higher sales tax or an income tax on people making more than $200,000 a year.
With very short notice, the Senate Ways and Means Committee held a hearing Thursday on a voter-approved income tax, the latest plan from Democrats to close a projected $2.8 billion budget gap with a balance of program cuts and higher taxes.
It was quickly praised by college students and members of progressive groups worried about program cuts, and denounced by business organizations and conservatives saying they are taxed too much already.
Sen. Margareta Prentice, chairwoman of the Ways and Means Committee, said it may be the way out of the state’s budget crisis, but added everything in the plan is subject to change.
“It allows us to make the tough decisions in Olympia while allowing the voters to decide in November,” said Prentice, D-Renton.
With a week remaining in the session, House and Senate Democrats disagree on which taxes to raise and by how much. While the House is looking at a series of smaller changes, Senate Democrats had a plan to up the sales tax by three-tenths of 1 percent for the next three years. Thursday they offered a revision: Raise the sales tax immediately, but give voters a chance in November to decide if they wanted to remove that increase, plus another half-percent, from the sales tax in exchange for an income tax on so-called high earners.
If voters say yes, a person making more than $200,000 or a couple making more than $400,000 would pay a 4.5 percent tax on any amount over that limit. Thus, a couple making $450,000 would pay 4.5 percent of $50,000, or $2,250. People making less than that wouldn’t pay the income tax.
Senate Majority Leader Lisa Brown, D-Spokane, broached the idea today on her blog, and said she sees it as a possible solution to the state’s financial crisis. She supports the concept but isn’t chained to it.
“I would personally feel good about it…I’m not saying it has got to be this way,” she said.
Sen. Rosa Franklin, D-Tacoma, told the committee it would start bringing the state’s tax system into the 21st century: “This is a very first step. It is not a magic bullet.”
Students from The Evergreen State College, who came to the Capitol earlier in the day to protest higher tuition and cuts to financial aid, said the state’s current tax system unfairly burdens the poor. “A tax on higher earners is preferable to cuts to programs for low earners,” said economics major Matt Boyd.
But other speakers said a tax that starts with incomes of $200,000 would quickly spread to everyone, or questioned whether it was constitutional to impose an income tax this way.
Amber Gunn of the Evergreen Freedom Foundation questioned the short notice for a hearing on a bill no one had a chance to read: “I don’t think there’s a more visible way for you to signal to people you’re not concerned with their input.”
In a separate interview, Sen. Chris Marr, D-Spokane, said that although it’s good to have the discussion on an income tax, it should have started in January.
“I didn’t like the sales tax (increase) and I like the idea of an income tax even less,” Marr said. “I question the willingness of the public to move in the direction of an income tax.”
Sen. Mark Schoesler, R-Ritzville, said bringing the bill up on short notice, near the end of the session, belies any suggestion of public involvement: “This is not open government, this is government by convenience.”
Romney/Paul split weighing on county GOP 
rterrylynch on March 05 at 12:28 a.m.
Shame on the Legislators and the Governer. The simple problem is too much expense - not too little revenue. We can’t let them have the keys to the citizens bank accounts; they simply must learn to curb their spending ways.
Don’t vote for any form of State Income Tax, there will never be enough to satisfy the “progressives” thirst for more money for government.
CharlesBillford on March 05 at 12:32 a.m.
There is another choice between an increased sales tax and an income tax. Its called. QUIT SPENDING what you dont have.
When will the legislators scrub the budget begining with mandantory services, and then piling the pork in with the nice to haves and finally the personall boondoggles?
If you and I can live within our means, why cant our State?
Our lack of leadership stems from the top. Perhaps if all the legislators lived in trailerhouses on the Capital Campus and on foodstamps, they might learn a thing or two about budgeting.
Bee509 on March 05 at 12:53 a.m.
Exactly, because when the income tax from the folks making $200k and up isn’t enough to satisfy, their foot is already in the door to bring it all the way across the board.
greyhound2 on March 05 at 5:20 a.m.
In America, about 80% of the wealth is owned or controlled by about 20% of the population, and of that, about 80% is inherited, mostly 3rd generation. If the government needs money, they need to go where the money is. The alledged Income Tax Reform under Bush, where 90% of the benefit went to the top 10% income bracket, is due to expire this year. They, the top 10%, are calling this a tax increase, which it is not. It is just a repeal of a give-away they bought at the expense of the country.
Clydesdale1957 on March 05 at 6:58 a.m.
If you have not done so read “Atlas Shrugged” by Ayn Rand.
Where do people come off with the idea it is fair to rob from those who have been successful to give benefits to those who have not, or are not yet? At some point, those who are being unfairly burdened with being over taxed, will just get tired of the game - and leave.
The solution is an across the board cut in all state spending - slash what is spent by say 50% to start with. And just keep cutting. Eventually, our state would get to the point where taxes could be reduced, which would then attract business and bring in more revenues.
When times are tight in our household, we tighten our belts and get by with less - time for the politicians to wake up and do the same.
donbarbieri on March 05 at 7:49 a.m.
I, for one, would gladly pay the extra 4.5% then see health care cut for those with no means,…or access denied to those who want a future and need education. It will affect my life very little to help those whose future simply depends on our society putting forth a helping hand.
Well done Lisa Brown for advancing this idea.
A higher sales tax hits the low income the hardest. This comparison of who pays what percentage of their income should be discussed, debated and the voters allowed to decide. A marginal tax increase for those who have been blessed with the the most is a concept to discuss with an open mind.
liarsinnews on March 05 at 7:50 a.m.
Been there done that, back in Minnesota. Born and raised in Minnesota in 1929. Retired after more than 33 years of continuous service with a large corporation. During that period of time, a Minnesota state income tax was enacted. I`ll cut to the quick. My last year of service, I paid around $1,000.00 a month state income tax. Was partly the reason for migrating to Washington. Enough said.
cowboy on March 05 at 7:51 a.m.
in the 1000 page health care reform documents Obama is trying to revive, States that the Fed will have access to your personnel bank account so they can take money for your health care as needed.
The plan to attach you personnel bank accounts as already been thought of and will be implemented sooner then we all think.
We are no longer a free nation now we are just a bunch of numbers with wallets.
liarsinnews on March 05 at 7:55 a.m.
ADDENDUM:
The state of Washington is the 11th highest taxed state in the union. If the spend thrifts can`t manage the budget with the revenue generated, how the heck would they manage the extra money. Lisa and Gregoire would have a field day.
cowboy on March 05 at 7:57 a.m.
The governor hired 22,000 new state employees in her first term but some how she got re-elected.
Mielke and Rogers bought a 4 million dollar money pt. They got re-elected.
Steve Tucker has changed the justice system in Spokane to meet his own needs. He keeps getting re-elected.
And the list goes on…until the people actually get educated before they vote we will never get out of the pit we are in.
And since the state legislator can change any law we vote against or for we really have no voice.
Megan_B on March 05 at 7:58 a.m.
Sales tax in Wash. is already so high that the income tax increase looks preferable. However, inflation needs to be taken into account. Not only should the language of the bill be strict enough to ensure that taxes do not spread to those making less than 200,000, but also that the minimum amount will go up with inflation, so that when 200,000 becomes a normal, middle class income with inflation, it is not subjected to the same taxes as if it were a higher upper-class income.
In the mean time, please raise taxes on alcohol and porn. As much as possible.
liarsinnews on March 05 at 8:17 a.m.
I apologize for adding one more comment. The political hacks back in Minnesota sold the package by lowering the state sales tax. It wasn`t that many years after the state income tax law was enacted that the sales tax increased and was the same as before the state income tax passed. fini
IHike4Fun on March 05 at 8:59 a.m.
So this year it is people who earn > $200K.
Once it is in then it will shortly apply to everyone.
Once an income tax is in place do you really think the unfriendly folks in Olympia can resist the temptation to expand it?
jetilley on March 05 at 9:54 a.m.
I think this is one of the best ideas regarding what to do about our state’s budget shortfall to come out of this legislative session. Let’s get income tax out there on the table and really see what the people in WA think about how to raise revenue for the essential services we all enjoy.
The choice is simple, really. Shall we continue relying on a regressive system of sales taxes that places the burden of paying for government on those at the lowest income levels? Or, do we ask people who are financially well-able to step up and support the very things — good education, infrastructure, police & fire protection, etc. — that make their communities stable and their wealth possible?
As a side note: I found it interesting that Jim Camden (or his editors) chose the words “so-called high earners” to reference individuals earning $200,000 a year. I can only assume that Jim and I live in very different worlds. In my world, people who earn $200,000 are without a doubt understood to be high earners.
MrNatural on March 05 at 10:34 a.m.
Ahh!…once more unto the breach, American Dream, once more;
Or close the budget with our well-off dead.
In flush economies there’s nothing so becomes the poor
As modest stillness and humility:
But when the emptiness of our coffers strafes the commoner
Then imitate the action of the socialist progressives;
Stiffen the sinews, summon up the humanity
Disguise fair and balance with pilfery of the elite;
CharlesBillford on March 05 at 12:13 p.m.
I want to buy a $2000 camera. I can buy it in Washington state and pay $172 in taxes or spend a nice weekend in Portland and buy it there for no taxes.
What do you think I’m going to do?
Go to Portland.
LLambeth on March 05 at 12:30 p.m.
We own a business with 50 employees here in Spokane. Our state continues to make it so hard for us to do business here that if this passes we will move our office just over the state line to Idaho, where they like businesses, and operate from there. That means we will also sell our home and move and we will take our employees with us.
This, and most other things this state are doing, are driving business away. Just look at the listing of businesses in the Journal of Business and see that there are more business filings in Idaho than Spokane. This should tell you something.
We MUST put a stop to these legislators who feel they can just continue to come after businesses and not have to take care of their own expenses. They give themselves and the state employees raises when the rest of us are cutting pay, no raises and owners are losing money.
When will these people wake up and figure this out? I’m going on a full out war against this - I hope others will join me.
liarsinnews on March 05 at 2:38 p.m.
LLambeth: Count on my support. In my previous life before retirement, I was manager of operations of a railroad in the mid-west. The city of Spokane fits the mold the state uses with their reckless spending habits. Seems to me the elected officials have absolutely no business experience with budgets and yet make decisions to drive big and small companies out of state with their lack of management skills. One would think common sense might dictate from time to time. I`ve yet to see it and it appears nobody is at the helm.
Justin_Galloway on March 05 at 5:00 p.m.
I don’t know where this stat of Washington being ranked 11th keeps popping up from. The Tax Foundation says we are a 35th. Check for yourself.
http://money.cnn.com/2009/04/10/pf/taxes/state_tax_rates/index.htm
Dazzeetrader11 on March 05 at 11:59 p.m.
Well, it’s good to see Mr Barbieri willing to spend his money in this way. Lisa Brown too. So I move that both spend their money any way they want and leave the rest of us alone. Mr Barbieri might liquidate one of his buildings he was given. He won’t miss it. Lisa Brown lives off the dole from the Wa St taxpayers so she should be okay as well. She’s never had a job…just our tax dollars to support her. Let em both give away everything they want…..Just leave the honest hardworking people alone.
In November, the only vote the Dems will get is the one tht votes these socialists out. Hope the rest of you will join me.
Obama obviously has installed his minions here in Wa. He’s next to go. Thanks Obama…I!
Marr/Brown/Gregoire/Obama…all need to go. I’d include Barbieri as well but he didn’t succeed in his election. C’mon citizens…get rid of these people in November. Win back Washington! Daisy
2112 on March 06 at 7:19 p.m.
When I read the pro income tax statements posted here, I am reminded of the saying; When robbing Peter to pay Paul, you can always count on Paul’s vote.
The state is increasing spending this biennium over last. Again; INCREASING spending. The largest recipient of this increase is DSHS.
whip5209 on March 07 at 7:26 a.m.
What kind of choice is this? Being screwed or being screwed? We need a 25% across the board funding cut on all state government agencies. DSHS is going to say “except us” and I would say “especially you”.
I will absolute vote against an income tax. Why? Because every year there is a bit of a shortfall, the crooks in our legislature will simply lower the upper end of the taxable income to meet the difference. I’m under that now, but I won’t be soon, around 100K.
The middle class is being destroyed from two ends. The wealthy fat cats (bankers, politicians, corporate upper management) on one side, the freebie crowd (welfare recipients, lowlifes, drug addicts, “medical retirements on SS”) on the other. How long can I survive being fleeced by these clowns? When will I (and other like me) refuse to support them?
And no, I’m not saying that I want to pay 0 taxes. Of course we need infrastructure. I’m above the limit I consider fair, and more $$ are wanted.
Have you ever got a job from a poor person?
whip5209 on March 07 at 7:36 a.m.
Oh yeah, I forgot something. How about we voters start a couple new voter initiatives?
1. A new 590 with additional language that states that the legislature does not have to power to rescind it. (Can you believe the nerve those people have?)
2. Since these politicians are so cavalier, how about a 30% pay and benefits cut on all state legislature electees including governor (see how they like that). Voters in their districts have the right to give these legislators pay raises based on merit on an individual basis.