The battle between taxpayers and government unions will define the fiscal future of the 50 states, and the newest battlefield is Washington state. That's where a few rich taxpayers led by Bill Gates Sr. and the Service Employees International Union (SEIU) are bankrolling a November ballot measure to create the state's first income tax.
And not just a toe-in-the-water tax. They're diving into the deep end with a proposal that would immediately impose a 5% tax rate on income above $200,000, or $400,000 for married couples. The rate would climb to 9% on single filers making $500,000, or $1 million for couples.
No state has introduced an income tax since Connecticut nearly 20 years ago, and that state's experience has not been happy. The top rate in Hartford began at 4.5% but has since climbed to 6.5%. Washington wants to leap over that and achieve California and New Jersey heights in one giant step. Washington would move overnight from one of the nine states with no income tax to having the eighth highest rate in the country.
Sunday, August 15, 2010
The Gates of Confiscation : Look who wants to give Washington state an income tax.
The Wall Street Journal reports: