Rantz: After accidental leak of Democrat tax plans, will voters fall for the scheme?

Progressive State Sen. Noel Frame, D-Seattle, accidentally emailed a PowerPoint and talking points memo on future tax plans to all senators instead of just her Democrat colleagues. Will Washington voters stand by as Democrats push forward with their unpopular and, in some cases, unconstitutional tax schemes?

Frame offers up ten taxes Democrats will likely introduce in the 2025 legislative session. Some are new, while others have failed in the past. They include an employer payroll tax on total compensation (against all businesses, not just “big businesses”), which includes “wages, salaries, stock options, etc.” and a wealth tax of 1% on “financial intangible assets exceeding $50 million.” As expected, Washington Democrats also plan to raise the capital gains tax to 9.9% and the property tax levy lid from 1% to 3%, while taxing ammunition and firearms at a rate of 11% and making the rental of storage units a retail transaction so it’s subject to taxes.

The leak went largely ignored by the media, despite the outlined plans being both radical and a direct contradiction to promises Democrats made during the election. These proposals come at a time when the state has seen years of record revenue, underscoring that Democrats in Olympia have a spending problem, not a revenue problem.

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How will Washington Democrats manipulate voters into accepting their tax plans?

According to the leaked Democrat tax memos, lawmakers are essentially told to deceptively pitch their plans to voters.

“We have to identify the villain and the problem blocking our progress and how we can take action to solve the issue,” Frame wrote.

The villain? Wealthy Washingtonians who are Democrats claim are not paying “what they truly owe in taxes.” Washington Democrats plan to turn this into a fight between “the wealthy” and everyone else “by making the wealthy few pay what they owe.”

“Despite recent reforms, we’re still requiring lower- and middle-income Washingtonians to pay far more in taxes than the wealthiest few and some of the biggest corporations in the world,” Frame falsely claimed.

Washington’s capital gains tax alone generated approximately $890 million in revenue from around 4,000 wealthy Washingtonians, surpassing initial projections of around $500 million. The wealthy in Washington contribute considerably more tax dollars than others and disproportionately receive fewer benefits than those who contribute less.

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Washington Democrats will push tax plans by demonizing the wealthy as ‘the villain’

The idea the wealthy aren’t “paying what they owe” is wholly contrived.

Frame specifically tells her Washington Democrat colleagues not to say “Tax the rich” or “pay their fair share” because it treats taxes as “punishment.” But claiming the wealthy must “pay what they owe,” Frame and her Washington Democrat colleagues are pretending that high-earners are withholding tax dollars illegally. That makes them “villains” who are easier to demonize.

“Be specific about the ‘villain’ – talk about ‘the wealthy few’ and those who wrote our flaw (sic) tax code 100 years ago,” Frame wrote.

The Senator also implores her colleagues not to “focus on the budget hole,” likely because their misspending is the reason that, despite record high revenue, there’s a $10-$12 billion projected deficit. Instead, Washington Democrats should push their tax plans by focusing “on the proposed solutions and how it will make people’s lives better.” In other words, the plan is to emotionally manipulate Washingtonians.

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Every Washingtonian is impacted by the tax plans

The idea that taxes, that Washington Democrats pretend hyper-target the wealthy, won’t impact other taxpayers is ludicrous.0

Capital gains and wealth taxes often discourage investment and economic growth, potentially leading to reduced job opportunities and wage stagnation that disproportionately affect middle- and low-income individuals. It also leads the wealthy to host their funds out of state or to move entirely. By moving to Florida, billionaire Amazon founder Jeff Bezos saved an estimated $1 billion in taxes, according to Forbes.

Businesses impacted by higher taxes almost always pass on the increased burden through higher prices or reduced services, indirectly raising costs for consumers and workers.

As to an unconstitutional wealth tax, even Radical Leftist and uber-wealthy Nick Hanauer are opposed, saying he doesn’t support a tax on “intangible assets.”

“Even if it clears the legal, implementation & other legal challenges, it’s unlikely to raise much $ given every wealthy person I’ve spoken to in the last few days has said they will leave the state. I believe them. Thoughtful taxes don’t actually drive people away, boneheaded taxes do,” Hanauer said on X.

When the wealthy leave after budgets are created that depend on revenue that is no longer coming in, does anyone think Democrats will suddenly halt their out-of-control spending? Or is it inevitable that they tax everyone else at higher rates?

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Do you care that you’re being manipulated?

Washington Democrats don’t mind that some know they’re manipulating voters into higher taxes. It’s precisely why they’re not taking this leaked tax plans document seriously.

If we had an objective local media, it would certainly become a big deal but Frame and her colleagues know they’ll avoid scrutiny. In a state with one-party rule, reporters are incentivized to provide favorable coverage. If they don’t, they lose access. It’ll become a bigger issue with Governor-elect Bob Ferguson, who is more thin-skinned than Jay Inslee.

There are many Washington voters who simply don’t understand that they keep supporting politicians who are responsible for the very issues they complain about. Scores of Democrat voters argue about the housing affordability crisis, the rise of homelessness, drug use, and crime and many other issues that impact their daily lives. Yet they re-elect the very people and party running the state. Do these voters actually believe the wealthy are villains? Perhaps when they realize their own wealth will soon inevitably qualify them as “the villain,” they’ll change their tune.

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