10/16/2010: "Initiative 1098: Not What It Seems"
A State income tax (they are selling it as an excise tax because our Washington Constitution does not allow an income tax) is a bad idea.
Their pitch for this new tax is misleading. It is being sold as a tax on the rich. On Initiative 1098 people need to be aware that the excise tax is on the receipt of taxable income. This means all income, including capital gains on the sale of a house or any assets or investment, which will include families that are not rich.
If they were genuine they would propose eliminating the regressive B&O tax and would not imply the initiative is going to significantly reduce our property tax. It is estimated that property tax will be reduced by 4% not the 20% they are pitching and will probably be increased in 2 years.
Keep in mind this tax can be expanded to include all tax payers in 2 years by the legislators once it is approved by the voters.
This Initiative also requires; “employers would be required to withhold estimated tax and pay it to the Department of Revenue” I have to ask how is the employer going to know which of his employees are RICH (sold an asset) so the employer will know if withholding is needed under penalty of being liable for the tax or being charged with a gross misdemeanor.
This tax is a bad idea and I will be voting no on Initiative Measure 1098.