State income tax is fair
Sun, 01/10/2010
The Washington state budget has been devastated by the recession. It wouldn't be so bad if we had a better tax system.
When retail sales and property values take a dive, so do revenues based on them. And the taxes that are collected fall most heavily on those least able to afford them.
A new study by the Institute on Taxation and Economic Policy shows that Washington has the most regressive tax system of all the states. A family earning an income of $10,000 a year pays 17.35 percent of that in state and local taxes, while one getting $80,000 pays about 8.8 percent.
That is grossly unjust for several reasons.
It hurts a poor person a lot more to pay a dollar than it does a rich person. The wealthy have more influence on legislation and take more advantage of state services.
They benefit from the education, health, and social services provided by the state to their workers and fellow citizens.
A progressive income tax would see that the cost of state services is fairly shared.
The press release for the ITEP report for all states is at http://www.itepnet.org/whopays3release.pdf.
The sheet giving the details for Washington is at http://www.itepnet.org/wp2009/wa_whopays_factsheet.pdf.
Bruce Pringle
Normandy Park