At the Heritage Foundation’s Bloggers Briefing this week,Scott Stanzel, former Deputy Press Secretary under President George W. Bush, released a study on a new tax initiative from the state of Washington.
The Initiative 1098 tax reform proposal promises to provide:
- Donation of 2 billion dollars per year to the funding of educational programs and health care reform;
- State property tax cuts of 20 percent;
- Elimination of the Business and Occupation (B&O) small business tax; and,
- A guarantee that the wealthiest 1.2 percent of the state’s “high earners” experience an increase
Stanzel claimed that, in the proposal, the tax rates are doubled for married filers, and further, there are no legal deductions. Moreover, the researchers who compiled the study found that there is a 5 percent tax on adjusted gross income of over 200,000; and a 9 percent tax on all adjusted gross income on households generating above 500,000.
When this income tax Initiative becomes law, the state of Washington would have the “fourth highest marginal income tax rate in the country,” Stanzel noted.
If the Initiative 1098 passes by simple majority, it will go into effect in Washington State in less than 2 years time. About 75 percent of Democrats are in favor of this new State Income tax.
On an historical note, no state has implemented an income tax within the last 20 years. The last one to do so was the state of Connecticut. Over the span of time (early 90’s) that this was being established, the nutmeg state’s economy had had no expansion job creation. At this same time, the nation at large however had created about 22 million new jobs.
Earlier this year, two Oregon ballott Initiatives, I-66 and I-67, raised taxes on home owners and businesses. That campaign cost approximately 7 million dollars in government employee and teacher’s union contributions to get those tax hikes in motion. The counter campaigns by the business communities roughly spent 4.5 million dollars to push them back, and lost.
“People are not necessarily in favor of high taxes right now; they are not in favor of more government spending,” Stanzel noted. “They are very concerned about governments that are out of touch.”
This is really becoming a fight amongst those government employee unions who attempt to continually “pull more money” from the private-sector economy and the businesses and enterprises that want to see the economy recover.
There is a “real fear” residing within America’s business communities, as the unemployment rate continues to linger. The United States Bureau of Labor reports the nation’s unemployment rate to be “about unchanged” at 9.6 percent at the close of August, 2010.
“It is a crisis we are in that is very important to the future of this State,” Stanzel declared.
This is a “signature fight” on the Federal tax front. The government needs to take the Initiative to control the federal spending and provide the classes of America with what is necessary.
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