By now you’ve likely heard about Initiative 645, a measure that would eliminate the Millionaires Tax passed by the legislature earlier this year. I-645 would blow a $13 billion hole in our state budget and force lawmakers to make deep cuts to education, health care, childcare, services for seniors and people with disabilities, along with other important services that people rely on.
There’s a lot of misinformation and outright lies about the initiative and its impacts. As Chair of the House Committee on Finance and one of the sponsors of the Millionaires Tax legislation, I’d like to set the record straight.
I’ll start with a short history of tax policy in Washington State. The tax code that has been in place for 90 years forces low-income earners to pay up to 13.8% in state and local taxes while those with the most – the top 1% – pay just 4.2%. As a result, our state doesn’t have stable and sustainable funding for our state’s budget.
This year we passed the Millionaires Tax, a 9.9% tax on annual income over $1 million. Put simply: if you don’t earn more than $1 million in a year, you won’t have to pay the tax. 99% of us don’t bring in the $83,000 per month that it takes to add up to a million dollars in a year. We will not have to pay the tax.
Let me be clear: I don’t support lowering the Millionaires Tax threshold, and I don’t believe a majority of legislators do either. The $1 million threshold is indexed to the same measure of inflation as our state’s minimum wage, so it will keep its real value over time. Also, the Governor said he would veto any effort to lower it. And just like with I-645, voters will always have the final say about who pays the tax and can reject any changes to it.
What’s at stake this election cycle with I-645? Besides a chance to continue to fix our unfair tax code, I-645 will mean deep cuts to important programs. We will also lose B&O tax breaks on most Washington small businesses, and we will not be able to expand the Working Families Tax Credit to hundreds of thousands of families. Thousands of students will lose access to free meals at school. And over-the-counter medicine, diapers, and other essential household items will continue to be taxed. In short, there’s a lot that working families will lose out on to give the wealthy a tax break.
Last year, the federal government cut food stamps and Medicaid coverage for thousands of Washingtonians in order to give a $90,000 tax break to the richest people in our state. In the State Legislature, we tried to backfill some of those cuts and boost state aid. But I-645 will force us to make more cuts to services for people who need them most. That’s unconscionable.
As you fill out your ballot this fall, ask yourself whether we can afford to give the highest earners in our state another tax break.
Most of us work hard, play by the rules, and pay what we owe. In return, we want the tools to build a good life and a safety net for when times get tough. All of us, no matter our zip code or income level, deserve to live in communities with good schools, quality health care, stable jobs, great parks, and safe roads. In order to pay for those things, everyone needs to pay what they truly owe in taxes. Vote no on I-645.
Rep. April Berg, Mill Creek
Rep. April Berg is a former small business owner and former aerospace program manager who represents the 44th Legislative District. Rep. Berg is the Chair of the House Finance Committee
COMMENTARY DISCLAIMER: The views and comments expressed are those of the writer and not necessarily those of the Lynnwood Times nor any of its affiliates.
Author: Lynnwood Times Contributor
