Coalition fighting to make Washington taxes less regressive
Apr 26, 2018, 12:54 PM
Washington state’s taxes have been called the most regressive in the U.S. Voters will have a chance to change that come November.
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A coalition made up of liberals drafted several initiatives, one which would require the Legislature to force households earning more than $600,000 a year to “pay at least the same percentage of income in state taxes as middle and low-income households.”
The measure would require the Legislature to take action by the end of the 2020 session.
In order to qualify the measure for the November ballot, supporters need to gather nearly 260,000 signatures from voters by July 6.
Overall, an analysis earlier this year found Washington ranks 24th in the country when it comes to tax burden. Income per capita in the state was the 11th highest. Sales tax per capita is third highest. That, however, was prior to the approval of higher property taxes that went into effect this year.
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A recent analysis found Seattle, Bellevue, and Renton to have the most regressive taxes in the state.
A household earning $25,000 pays 17 percent of its income in taxes, in Seattle. While a household earning $250,000 a year pays just 4.4 percent.
Low-income households in Bellevue pay about 1 percent less than those in Seattle, while high-earners pay slightly more.
The regressive tax system in and around Seattle has received at least partial blame for making the area unaffordable. There have been efforts in Seattle to balance things out, including an income tax — which received immediate push back.
Last year, former Gov. Christine Gregoire warned it was unlikely a statewide income tax would be approved any time soon.
“Frankly, I think it’s not accepted by the people in this state,” she said. “Statewide, I do not see an appetite by the people of this state to go to an income tax.”
