I’m voting yes on Initiative 1098 this fall and I encourage you to do the same! And Like Bill Gates Sr. – I would be supporting it even if I were rolling in the dough! Washington State has the most regressive taxes of any state in the country! In Washington, poor people (those making less than $20,000 per year) pay 17.3% of their income in taxes, but people who earn $537,000 or more a year only pay 2.6% of their income in taxes! Check out the article in this weeks Stranger – Tax the Filthy Rich!
This is the result of our states heavy reliance in the sales tax, which accounts for over 50% of all state revenue! Think about this – two families, one rich and one poor buy the basket of food at the grocery store. They also pay the exact same tax for the same basket of food – for the poor family this is a much bigger burden than the rich family. The Institute on Taxation and Economic Policy in its 2009 report entitled: Who Pays? – A Distributional Analysis of the Tax System in all 50 States, identifies the 10 most regressive tax states – Washington State is right at the top of the list! In Washington State we ask our poorest residents – those in the bottom 20% of the income scale – to pay up to six times as much of their income in taxes as we ask the wealthy to pay.