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WA income tax clears House after 24-hour debate

seattletimes.com

31–40 of 193 posts

Re: WA income tax clears House after 24-hour debate

#31
post #18

When I was a new grad moving to the US and deciding where to live and work, the biggest draw of Seattle was its lack of income tax. Of course this particular $1 million threshold wouldn't apply to me until I'm very late in my career, or have a lucky year, or get married to a high-income person (the $1 million threshold applies to married couples, not just individuals) but Seattle loses a lot of its appeal if it's not…

I live in Texas. People move here and are flabbergasted by our property taxes.

The current governor is proposing cutting property taxes in ~half by eliminating the school district portion and instead funding schools directly via the state's budget surplus.

Remains to be seen, as the next legislative session isn't until 2027.

Re: WA income tax clears House after 24-hour debate

#32
post #3

I don't understand how anyone in good conscience can vote against this tax. As a reminder, this tax does not affect income under a million US dollars. From the article, if you earn a dollar over a million dollars, you owe 9.9% so you need to pay a dime in income tax.

If you are truly incapable of even imagining the objections (that you might disagree with!) you should probably get out of your bubble and expand the content you consume.

Re: WA income tax clears House after 24-hour debate

#33

I grew up in WA and as much as I enjoyed the lack of income tax, it's factual that until recently they held the title of #1 most regressive state tax system nationwide (recently bumped to #2 by FL). Income taxes are much better distributed among income brackets than consumption taxes are. I grew up just over the river from Portland, where there is no state sales tax; we got to enjoy the best of both worlds by crossin…

the great thing about sales tax is rich people spend a lot of money on dumb shit

Not enough to make it preferable to income taxes.

Re: WA income tax clears House after 24-hour debate

#34
As someone who lives in WA, I despise how bad any state government run program here is. Literally it took me 3 months to get a SSN and I couldn’t get hold of anyone. Also on top of this tax, they have this care tax which also taxes 1% of your income for “long term care”.

I would love to pay my taxes if I had seen reasonable outcome. So far all I see is a corrupt state government with no accountability and transparency.

Also isn’t this illegal? I thought the state constitution says it is illegal.

Re: WA income tax clears House after 24-hour debate

#35
post #18

When I was a new grad moving to the US and deciding where to live and work, the biggest draw of Seattle was its lack of income tax. Of course this particular $1 million threshold wouldn't apply to me until I'm very late in my career, or have a lucky year, or get married to a high-income person (the $1 million threshold applies to married couples, not just individuals) but Seattle loses a lot of its appeal if it's not…

I live in Texas. People move here and are flabbergasted by our property taxes.

NJ, in areas with good schools, has higher property taxes.

Re: WA income tax clears House after 24-hour debate

#36

I grew up in WA and as much as I enjoyed the lack of income tax, it's factual that until recently they held the title of #1 most regressive state tax system nationwide (recently bumped to #2 by FL). Income taxes are much better distributed among income brackets than consumption taxes are. I grew up just over the river from Portland, where there is no state sales tax; we got to enjoy the best of both worlds by crossin…

the great thing about sales tax is rich people spend a lot of money on dumb shit

The great thing about sales tax is that everyone can bypass it. You don't need to be the kind of person who can hire a tax expert to coach you; all you need to do is drive over the state line!

Re: WA income tax clears House after 24-hour debate

#37
post #3

I don't understand how anyone in good conscience can vote against this tax. As a reminder, this tax does not affect income under a million US dollars. From the article, if you earn a dollar over a million dollars, you owe 9.9% so you need to pay a dime in income tax.

> I don't understand how anyone in good conscience can vote against this tax.

For all the reasons you can vote against any tax.

Taxation is not the default. The justification always has to come from the proponents.

And I say this as a pro tax person who has voted for more taxes and lives in a high income tax state.

Re: WA income tax clears House after 24-hour debate

#38

I grew up in WA and as much as I enjoyed the lack of income tax, it's factual that until recently they held the title of #1 most regressive state tax system nationwide (recently bumped to #2 by FL). Income taxes are much better distributed among income brackets than consumption taxes are. I grew up just over the river from Portland, where there is no state sales tax; we got to enjoy the best of both worlds by crossin…

The "free" federal tax filing service I use in Florida, makes their money by charging for state filings. It will add an additional hour or two of effort to every resident of the state, even if they are below the state income threshold which is quite an externality.

Also, I would be wary bragging about buying your goods in Oregon, you technically may owe WA use tax https://dor.wa.gov/taxes-rates/use-tax.

Re: WA income tax clears House after 24-hour debate

#39
post #18

When I was a new grad moving to the US and deciding where to live and work, the biggest draw of Seattle was its lack of income tax. Of course this particular $1 million threshold wouldn't apply to me until I'm very late in my career, or have a lucky year, or get married to a high-income person (the $1 million threshold applies to married couples, not just individuals) but Seattle loses a lot of its appeal if it's not…

I live in Texas. People move here and are flabbergasted by our property taxes.

Tax rates under 2% of property value should not "flabbergast" anyone. I prefer a state having a high property tax rate and cheap housing over an income tax. I'm sure most Texans do, too.

Re: WA income tax clears House after 24-hour debate

#40
post #3

I don't understand how anyone in good conscience can vote against this tax. As a reminder, this tax does not affect income under a million US dollars. From the article, if you earn a dollar over a million dollars, you owe 9.9% so you need to pay a dime in income tax.

> As a reminder, this tax does not affect income under a million US dollars.

For now. The legislature refused to add an amendment forbidding the threshold from ever being lowered to guarantee that it only applies to a million and above.

The way the Washington state constitution works is income is treated as property, and property taxes must be uniform.

So this bill isn't just a millionaire's tax, it's a state-wide income tax of 9.9% with the first million exempt.

It's a good thing, for now, but it does set precedent and the fact they refused to add language to the bill forbidding that exemption from every being removed or lowered is telling. The income threshold will eventually be lowered.

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