Sneaky

New Push For State Income Tax

There are 147 people who meet every two years in Olympia with the power to decide the future of our state. Unless they have reason to do otherwise, they confer in private. They shun the light of public scrutiny, and are not above ignoring public opinion if they think they can get away with it. They are collectively known as our state legislature. The news is filled with President Biden and the Corona virus, so the machinations of our 98 representatives and 49 senators have pretty much gone unnoticed. I had the opportunity to converse with my local representative a few years ago. I forget the subject, but I do recall him offering to put me on the email list to receive a legislative newsletter. I didn’t think I would, but I find the updates fascinating and read each one. I have become convinced that a lobotomy is a mandatory part of the oath of office. Some of the proposed legislation seems to have no connection to what the voters want nor need.

I have lost count of the number of times the voters have refused to consider a state income tax. It was soundly defeated last election. Our elected officials, in their quest to squeeze more money out of the taxpayers, have decided to circle around the issue and come at it sideways. To get a foot in the door, the current proposal is to limit the tax to capital gains income. The logic (or illogic) is that only the rich benefit from capital gains, and rich people need to pay more. Besides the fact that capital gains are already taxed twice, once as corporate income, and again when company profits are paid out to investors; voters need to realize capital gains are the backbone of private retirement accounts. IRAs and 401Ks are usually portfolios of stocks and mutual funds. There are also millions of citizens who either don’t trust government management of Social Security, or simply choose to invest for their future. An income tax will punish those who have wisely managed their funds to take care of their golden years.

But some say, “It is only capital gains. There is no plan for a state income tax on the wages of working people.” BS! Tax plans never back up. They can only broaden in scope degree. The history of Federal Income Tax is a prime example. The original income tax in 1913 was set at one percent for those making over $3000 a year. My how the tax has grown! The same is true of Social Security. The original program promised the tax would never exceed 5%. So much for federal government assurances. State government does no better. I remember Governor Christie Gregoire campaigning for an estate tax as a way to fund schools. After several attempts, she finally got voter approval. Two decades later, schools are still underfunded, and every dollar from the state inheritance tax goes into the general fund.

We should have a law prohibiting proposals from returning to the ballot as soon as they are defeated. A state income tax has been considered every election cycle I can remember. To bring it up again should be ruled out of order. Contact your representative and get on the list to receive the legislative newsletter. At least then you will know which of our elected officials are trying to end run around the voters.

Frank Watson is a retired Air Force Colonel and long-time resident of Eastern Washington. He has been a free-lance columnist for over 20 years.