Democrats have long advocated—and actively pursued—a state income tax. It’s in Washington State Democrats’ party platform as a “guiding principle” for the next two years. And, at least one Democrat legislator introduces a state income tax bill every legislative session. This throw back Thursday, we are taking a look at Democrats’ past (and present) obsession with a state income tax.
In 2010, Washingtonians said a very loud “NO” to a state income tax, with a resounding 64 percent of the vote against an initiative pushed by Gov. Chris Gregoire and the rest of the Democrat Party. Unfortunately, the clear message voters sent was not enough to deter tone-deaf Democrats.
Democrats’ determination to establish a state income tax, despite the clear wish of Washingtonians, is not exactly a secret—though mainstream media outlets do not do enough to report on the issue. Most Democrats avoid overtly supporting a state income tax. But, those who openly confirm their support of the deeply unpopular policy are not in the minority.
State Sen. David Frockt said he “favors significant taxes on the wealthy—a capital gains tax, income tax, and closing corporate tax loopholes…” during his campaign in 2014. Additionally, now Sen. Pramila Jayapal confirmed she supported a “smart, progressive policies—including an income tax on the rich…” as a candidate. And, Sen. Cyrus Habib said he hopes to “eventually passing a capital-gains tax or an income tax on the rich.”
Democrat state Senators Maralyn Chase, Bob Hasegawa, Jeanne Kohl-Welles and Pramila Jayapal sponsored Senate Bill 8202 this legislative cycle. SB 8202 represents Democrats’ latest attempt to defy Washington voters and implement a state income tax. Their efforts are re-enforced by Sen. Mark Liias who also introduced a state income tax bill this legislative cycle. As Shift reported, Liias claimed a state income tax would fund teacher pay raises using disingenuous statistics and flawed math.
However, this year, most Democrats have decided to pursue their “guiding principle” through a less obvious route: a capital gains income tax.
Jay Inslee’s budget proposal includes a 7.5% state capital gains income tax. He billed the tax as “fair” and Democrat lawmakers have been eager to offer their support ever since. Democrats have billed a capital gains tax as the answer to Washington State’s budget woes. Inslee insists that the tax would generate hundreds of millions during the 2015-17 budget cycle.
The reality of a state capital gains income tax—as Shift has pointed out—is far less fair or optimistic as Democrats present. The capital gains tax is a notoriously volatile form of taxation, hardly reliable as stable revenue source. Considering the disproportionate impact the tax has in the long term, it certainly is not fair form of taxation. And, according to a recent article in Smarter Government Washington, it may not even be a lawful form of taxation under our state constitution. Smarter Government WA,
The state Supreme Court has repeatedly ruled over the decades that a person’s income is their “property.” Those rulings and the constitution’s requirement for uniform taxes have waylaid the Left’s ambitions for a progressive income tax in Washington. If the state wanted to tax some people’s income at, say, 15%, it would have to tax everyone’s income at 15%.
Supporters of a capital gains tax have tried to work around the “income as property” problem by defining the tax as an excise tax, not an income tax. That strategy has been tried before, after Washington’s brief income tax experiment was struck down by the state Supreme Court in the 1930’s. It was not successful.
If Democrats manage to pass a capital gains tax this legislative session—though it isn’t likely—there will be a court challenge. The court would have to decide some pressing questions including: “Are a person’s capital gains their property as laid out in the state constitution? If so, the rates on their taxation would have to be uniform. If not, what is the distinction? How is income a person derives from a job or a business different than income derived from an investment?”
Democrats’ push for a state capital gains tax is not only a “half-baked idea” considering the constitutional questions it raises, it’s also an attempt to achieve their “guiding principle.” In the end, a state capital gains tax is just another form of a state income tax.
No Thank You! I’m running out of income to tax! How about Cut Spending! How about stop being a Nanny State! How about every time a vote comes up in the next 5 years for an increase in tax, no matter how small or what it’s for, a no vote is cast. Let’s just see some black ink for once in our lives. If you liberals want to spend your own money, hand over your wallet. End Game.
What? You sound like a conservative. How dare you defying the liberal big daddy government? You shall be taxed an additional 7.5% in so called “capitial gain tax.”
“capital gains”…….. I can’t go there without a drink…………..
Tell me about. Liberals love to be taxed and will volunteer to give up 60% of their wages to Big Daddy to fill the politicians coffers.
What about the Billions in tax breaks Boeing got? There was a good chunk of money pissed away.
What about it? The tax break is a bribe from the DEM and REP politiicans to keep the Boeing Headquarters in WA. If you went to a ABC Store and they say tax is 10%, and XYZ Store offers says tax break at 7%, which store will you go? So, why is it that Boeing cannot do what a smart consumer would. It is tiring hearing liberals ranting about about corporations not paying the fair share. If the liberal party is so imminent about taxing corporations to death so be it, just don’t cry when things don’t go your way.
Your statement alone speaks volumes of the problem with this state and its voters.
It is no surprise that the Liberal, Socialist, Daddy, Nanny Government is trying to syphon 7.5% of their hard earned income on its citizens in WA State. It is so obvious that the liberals want to increase taxes to pay their overpaid buffons leaders in the 150 plus government commitees, boards, commisions, councils, regulators, state depatments, and the Washington State Anus Wiping Watchers Department.
.
The Liberals citizens were smart to say, “no to income tax”, eventhough their Big Daddy Liberals crafted the income tax for the people that make over $200,000. The Liberal citizens must have seen written on the walls that the law could have been changed in a couple years and make everyone pay income tax in the end.
.
Now, Liberal Big Daddy Liberals crafted a new word “capital gains tax”. No, it’s not income tax — it’s capital gain tax. Come on now! How gallible Liberal Big Daddy thinks are the Liberal citizens? Will see. I hope they see the same writing on the walls again — there is no telling — now that pot is legal many are partaking on the progressive dumbing down, so they might just vote for the “income tax”, oops, I mean “capital gain tax.”
.
I heard from this person, “tensor”, that WA State is doing so well, as far as the economy goes, and that there are many jobs, but why is the state in pain to meet the demand to pay their bills if there are many more people in WA State working than any other states in the country? I would imagine there would be more tax revenue going to the State, but I leavee that for tensor to ponder upon.
.
YOU DON”T NEED ANOTHER TAX TO PAY WASHINGTON — YOU NEED TO DEMAND DOWNSIZE THE GOVERNMENT AND I WILL BEAT THAT LOTS OF PAIN AT STATE LEVEL WILL GO AWAY. What do I know? I have been accused of being a conservative and what not, I know that Big Daddy Liberals knows what is best for you. If you are not a fool Liberal citizen than you will vote no for capital gain tax. Another fancy liberal made up masked name for income tax.
.
Liberal mantra “Do as I as Not as I do”.
.
Good luck Washington! I heard that Seattle is trying to accomodate the growing homeless in tent city, perhaps they will get a bigger land for you to live in. Again, I heard there are many more jobs is WA State than any other states in the country. My friend, , tensor said so. I believe he is not biased according to Bloomberg — bull s hit