COMMENTS

BECKER WEIGHS IN ON STATE INCOME TAX

By: Randi Becker March 9, 2010

It seems as though things are changing by the moment here in Olympia. As you have probably heard, the largest tax package in history to pay for the daily operations of state government was passed by the Senate on Sunday, and rest assured I voted no.

The proposed increase in taxes will ultimately hurt individuals and businesses already suffering because of the nationwide recession. The taxes that were approved Sunday will cost each man, woman and child in the state of Washington $124 in the next budget cycle, and a family of four $496.

The House of Representatives adopted a similarly-sized tax proposal in the wee hours of Tuesday morning. It does not include a general sales tax increase but does include a new tax on candy. It also agrees with the Senate and governor about increasing the cigarette tax by $1 per pack. The Senate and House majorities now must meet to agree on a tax proposal both can support, and we aren’t sure when that will emerge – it may push the Legislature into a costly “special” session. But I can tell you two things already: it will be the largest tax increase of its kind in our state history, and I will again vote “no”.

But until then I want to shift gears and report on the surprise Senate Ways and Means Committee hearing on the proposed state income tax for what the majority party calls “high earners.”

First, I thank everyone from the 2nd District who came to testify on Senate Bill 6250, which would implement a state income tax on individuals making more than $200,000, head-of-households making more than $300,000, and couples earning more than $400,000. Even though notice about the committee hearing on the income-tax bill came at the last minute, a number of people from our district turned around on their way home from work to make sure their voices were heard!

While it does not seem as though the income-tax bill will be moving forward this session, I view its emergence with just a week to go in the regular session as a sign of where things may be heading. To those who believe an income tax would be acceptable because it would only apply to those making large amounts of money, I must point out a historical fact: that is how the federal income tax started out, and now just about everyone is subject to the federal income tax.

Our state already has three major taxes – sales tax, property tax and the business and occupation tax – and none of them would go away under SB 6250 or any other income-tax bill I’ve seen. And as I say, I am too worried about what would happen down the road if an income tax was to be imposed even on a small group of Washingtonians. That is why I will never support a state income tax.