Mark Kartchner: It’s time to fix our upside-down tax code

By Tuesday, January 9, 2018, the wealthiest people in Washington had earned enough to pay their share of state taxes for the entire year. That’s just six business days.

It takes working people more than two months to do the same.

In a state that leads the nation in change, where innovators and doers have come for decades to build their future, we have the worst tax code in the country: Washington is ranked in last place. No matter how resourceful you might be, our tax code makes realizing your dreams very difficult if you aren’t already wealthy. Working people pay up to 17 percent of their income in state and local taxes, middle-income households pay 10 percent and the wealthy pay less than 3 percent.

I have two brothers; each one knows intimately how great a factor a tax code can be to success. My brother-in-law has prospered through his work in law and real estate. He earns additional income through capital gains, profits from the sale of properties and high-dollar assets. Many of Washington’s wealthiest live off capital gains entirely, barely lifting a finger to make six figures. Here’s the kicker: Washington is one of only nine states without a capital gains tax. Meanwhile, millions of Washingtonians work multiple jobs just to scrape by.

My other brother is one such person. He works two jobs to make ends meet and lives a simple life but will never see the prosperity of my brother-in-law.

A seizure disorder disrupted his education and forced him to drop out of college, making all the difference. It is nonsensical that my brother and other low-income workers should pay five to seven times more than their wealthy neighbors.

Washington is a great place to live, but across the state there are deep discrepancies in public school funding, our infrastructure is in need of maintenance and health care is out of reach for many. I know our state can accomplish more. That starts with cleaning up the tax code.

Not only does our tax code give the wealthiest a special deal, it’s also it’s riddled with holes. Powerful special interests have rigged the tax code with over 600 wasteful tax breaks and loopholes – like the tax break on capital gains – that siphon money out of our communities. These resources could be invested in real solutions that benefit everyone.

If we were all in it together, working with our friends and neighbors instead of fighting to keep money to ourselves, we could ensure that every person has access to an education, a strong safety net, and the chance to chase their dreams. I look at the diverging lives my brothers lead and I’m struck by how deeply flawed our tax code is. It doesn’t have to be this way. We must end wasteful tax breaks and loopholes and ask those with the most to start paying their share. Then, finally, we can live up to the character of our state so every community can thrive.