Recent Stories with tag property

Bill Gates, Sr.

Word "leaked" out last night that an income tax initiative could join the marijuana legalization initiative already in progress. Joel Connelly posted the news to Strange Bedfellows, describing I-1077 as a "sweeping plan to cut the state property tax, eliminate the Business and Occupation Tax for small businesses and create an income tax on high income couples."

How times have changed--Connelly also points out that Republican governor Dan Evans tried twice to bring an income tax to Washington in the early '70s. Now, a Democratic governor and legislature won't touch the idea. Bill Gates, Sr., is the figurehead for the initiative; Gates has been unusually willing to argue for higher taxes on the wealthy, so he has probably already lost all the country club friends he's going to.

I-1077 is (like State Senate Majority Leader Lisa Brown's earlier, unsupported proposal) a high-earner's tax, applying first a five percent tax to income earned over $200,000 for individuals, or $400,000 for couples. A second bracket of $500,000/$1 million would apply a $15,000/$30,000-plus-nine-percent tax (again, on income earned above that amount). For some reason, Canadian Business Online has the most details on the initiative's actual brackets.

Total revenue could be $1 billion. In return, the Seattle Times says, the initiative "would cut the state property tax by 20 percent" and "end the business-and-occupation tax for small businesses."

The success of the initiative is dependent on first gaining 240,000 signatures between now and July, so that it makes the ballot; then winning in November, and then not being ruled unconstitutional, thanks to a 1933 Washington Supreme Court ruling that interpreted income as a form of property. Under the state constitution, "property taxes must be uniform on every class of property and can't exceed 1 percent of the value of property" (the Seattle Times, again).

"ah, nuts" courtesy of The SunBreak Flickr Pool member Nareshe

Tim Eyman has an I-1033 editorial in the Seattle Times this morning, and while there are many assertions he makes that you can--and should--take issue with, I want to start with his point that an earlier attempt to straitjacket government turned out great: I-747.

At the time, Big Business, Big Labor, politicians and the press went ballistic — they said it'd be "devastating" and "impossible." [...] It was neither "devastating" nor "impossible." Governments have repeatedly proved that they're much more adaptable than they're willing to admit.

What governments have proved themselves capable of adapting to is eliminating (or reducing) the quality of services, and having taxpayers make up the difference through other means. Emergency medical services and fire fighters simply resorted to special levies to keep operating. (Full disclosure: I still have a grudge against Eyman from I-695, which has so far raised the Seattle-Bremerton passenger-only fare from $3.35 to to $6.90, with no end in sight.)

In any event, it doesn't seem like Eyman has interviewed the family of anyone who has died or was permanently affected because of I-747 cutbacks to emergency services see if they feel it was "devastating" or not. He seems like a man who's burnt all his furniture for firewood crowing about how uncluttered his house is.

So who is benefiting? Danny Westneat points out that Eyman's simple attempt at fiscal discipline does great things for the wealthy. Bill Gates, for instance, could see a refund of over half his $1 million annual property tax assessment.

It's tempting to call Eyman an idiot or a tool--and I don't mean to argue that--but his initiatives succeed because he's able to bring up a pain point (property taxes, in this case) and a call to action: "Taxes are too high! Cut the fat!"...

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