Washington State has been losing ground on education for 15 years, slipping towards the bottom of national rankings in class size and school funding. Our children, workers, and businesses deserve better. The recession highlights how difficult it is to raise additional revenues to maintain and improve public services, given Washington’s outmoded and regressive tax structure. Could now be the time to implement a new tax structure including an income tax in Washington State?
Q.WHY CONSIDER AN INCOME TAX FOR WASHINGTON?
A. With an outmoded public revenue system, Washington cannot provide the foundation of high quality public services state residents and businesses need to thrive in the modern economy. Sales taxes provided 56.5% of Washington’s General Fund in 2007-09, and 49% of all state revenue. Washington is one of only seven states with no income tax. On average across the states, individual income taxes contribute about 35% of state revenues, and sales tax just 31.5%.
Not having an income tax and relying too heavily on sales tax makes Washington’s tax structure:
- Regressive. Low- and moderate-income residents pay particularly high portions of their income in state and local taxes, while the wealthy do not contribute their fair share.
- Inadequate. With the gap widening. In the 2005-06 school year, Washington ranked 37th among the states in per pupil funding for public schools, and 46th relative to state personal income.4 Public revenues in the state grow more slowly than the economy and need for state services, as people spend more of their income on services which are not subject to sales tax.
- Unstable. While all state budgets have taken a hit in the current recession, Washington’s public revenue stream has been particularly devastated by the collapse of consumer spending and the housing market. The more diversified a state’s revenue stream, the better able it is to hold up as the economy changes.
More To Read
March 20, 2024
I-2111: The Income Tax Ban Is A Spectacle, but One We Can’t Ignore
A way to waste time, energy, and money, I-2111 is costing more than just taxes
March 20, 2024
Let’s Go Washington: Three initiatives threatening to roll back years of progress
Here’s what you need to know about the initiatives on your November ballot
March 12, 2024
Washington’s Women Are More Protected This Equal Pay Day
Thanks to an update to the state's wage discrimination protections, Washington woman are closer to closing the wage gap