The report from the Washington State Tax Structure Study Committee last December concluded that a state income tax would be in the best interest of Washington residents. We thought that controversial recommendation would spark a statewide dialogue on the state's tax structure.
Instead, the findings seemed to fall on deaf ears.
Granted, the 2003 Legislature had a lot on the agenda, including a $2.5 billion budget deficit and the need to reach agreement on a comprehensive transportation financing package. As a result, the recommendations of the tax structure committee barely raised a ripple in the 2003 legislative session.
Now, activist groups ranging from Thurston County Democrats to the Green Party of Mason County are stirring the pot in hopes of igniting a discussion on the state's antiquated tax structure.
"I think there's a broad recognition that Washington's tax system is inequitable," said Seattle lawyer Hugh Spitzer, vice-chair of the statewide study group.
Bill Gates Sr., an attorney, was chair of the study commission and said at the time of the study, "The most important problem with the current system is in terms of fairness." Gates said the state sales tax is unduly burdensome on the poor, who pay a higher percentage of their total income on taxes than the rich.
Without a state income tax, Washington lawmakers rely primarily on the sales tax, business and occupations tax and property taxes to balance the state budget.
"People understand that it (the state tax code) disproportionately taxes low- and lower-middle-income people," Spitzer said. "The irony is that an income tax, which would be much more fair to low- and middle-income voters, is greeted with suspicion. That's because they think any new tax will necessarily be an increase in taxes overall."
That's not what the tax structure committee suggested. The committee recommended an income tax, but said the sales tax be reduced and the property tax eliminated to be revenue neutral.
Unfortunately, the mere mention of an income tax sends shivers through most taxpayers. Many have an immediate negative reaction. That's unfortunate because it's difficult to have a lively and educated conversation with individuals who are caught up in visceral reaction. The key here is for residents to keep an open mind.
Tonight, Thurston County Democrats and state Democrats hope to launch the conversation with Spitzer as guest speaker followed by a panel discussion. Mason County Greens will follow with a meeting Nov. 18 to continue the conversation.
Democrats, Republicans, Greens, independents -- people of all political stripes -- should avail themselves of every opportunity to discuss the state's tax structure. It's essential this state come to a reasoned conclusion based on facts and information, not on emotion.
- Democrats: Meet tonight at 7 p.m. at Olympian Hotel Ballroom, 116 Legion Way S.E. in Olympia.
- Green Party of Mason County: Meets at 7:30 p.m. next Tuesday at the William Reed Library, Seventh Avenue and Alder Street in Shelton.