The state Department of Commerce is once again using our state’s lack of a state income tax as a selling point to encourage businesses to come to Washington, hoping that Democrats from Jay Inslee to Frank Chopp won’t notice that their desire for a state income tax is being trashed by state bureaucrats. Commerce’s marketing materials for the Paris Air Show flaunt Washington’s small overall tax burden compared with other states. A brochure reads,
“When it comes to making your money go as far as possible, Washington is an excellent choice. We don’t have personal or corporate income taxes and there are tax exemptions for specific industries, ensuring that you get to keep more of your hard earned money to expand and grow… We hate to brag, but Washington was ranked #1 by MoneyRates.com as the best place to make a living based on income taxes…”
Interestingly enough, what is not mentioned is Washington’s lack of a capital gains income tax. As Shift reported, Commerce – which is run by Jay Inslee’s former congressional chief of staff – removed reference to our state’s lack of a capital gains income tax from their “Choose Washington” website. Commerce chose to eliminate references to the capital gains income tax due to Jay Inslee and House Democrats’ desire for the tax.
Commerce also refrains— perhaps wisely—from mentioning how implementation of a state capital gains income tax would hurt benefits garnered by not having a state income tax. The Washington Policy Center explains,
“But new businesses should be aware that if the legislature approves a tax on capital gains, it will make Washington less competitive with the other eight other states that do not have an income tax; in each of those eight states there is also no tax on capital gains. Changing that would make Washington an anomaly compared to these other states.”
Not only would Washington become an anomaly, a state capital gains income tax also threatens the future of our state’s no income tax status. As Democrats have proved time and time again, they are willing to try anything to achieve their party’s “guiding principle” and implement a state income tax. The Washington Policy Center,
“As explained in a previous WPC blog, our state’s Supreme Court has prohibited graduated, across-the-board income taxes in Washington. It would take a constitutional amendment to end that prohibition.
“As Jason Mercier notes, there is some suspicion that the reason the capital gains tax is being targeted is because there are some that believe the current justices would overturn the prior case law allowing income taxes in Washington without a constitutional amendment. Supporters have been looking for a test case and this could fit the bill.
“Either way, a capital gains tax, and the uncertainty it could foster for the possibility of an income tax in the future, is definitely not a selling point for doing.”
Photo via Boeing.com
Eastside Sanity says
Jay Inslee & his Liberal Progressive Democratic Party are a bunch of Elitist Hypocrites!