Substitute state income tax
Mon, 01/18/2010
Washington is one of only eight states that does not collect an income tax.
So far, suggestions to the Legislature and to our own representatives that suggest that they consider ABOLISHING sales tax by July 4th and declaring that day as TAX FREEDOM DAY has fallen on deaf ears.
The tax could be replaced by a state income tax that exempts income under $150,000. Most voters earn less than $150,000. The existing IRS records for Washington state and Freedom for Information Act will provide revenue information.
About 2003, Congress eliminated payment of a substantial share of the federal income tax for wealthy Americans. The premise for this tax venture was that the wealthy would invest this money in the nation's infrastructure.
This plan did not work. The revenue went into misguided banking schemes, collapse of the housing market, major bank failures, collapse of the U.S. dollar and on.
Congress has never attempted to recover this misguided tax gift. The Washington State Legislature could recognize that this gift technically violated the state's own constitution by the gift of tax revenue for questionable purposes.
Revenue which was earned in Washington state and planned for Washington state usage was gifted out of this nation.
Our tax structure requires major repairs.
Dan Caldwell
Des Molines