Washington's state and local taxes fall heavily on low‐ and middle‐income residents; yet public revenues are not sufficient to finance important public structures for economic development and personal opportunity, such as world‐class education and transportation systems.
Other states have achieved more progressive and flexible tax structures by including a broad‐based income tax in their mix of public revenues. Rather than slash investments or increase rates on existing regressive taxes, Washington could implement a new tax on the highest income state residents.
A tax on high incomes could raise enough revenue to allow a reduction in regressive sales or property taxes, while still raising new funds to invest in high priority services.
work is licensed under a Creative
Commons Attribution-Noncommercial-Share Alike 3.0 Unported License
from the Economic Opportunity Institute. Liquid layout thanks to Matthew James Taylor.