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  1. #1
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    WA Governor Gregoire faced with stark reality over Nations worst sales tax

    Recently, outgoing two-term Governor and Former AG Chris Gregoire decided to make one last ditch effort to save education in Washington State, facing a budget shortfall and a supreme court order to restore billions to schools in the state.

    At the heart of the issue is the collection of sales taxes across state lines, whereas Washington residents only pay sales taxes to businesses that operate within state borders.

    Gov. Gregoire proposed expanding the sales tax to affect out of state sales to Washington residents, to 'level the playing field' for local businesses who must charge the sales tax, going so far to propose that the tax expansion be included with federal budget negotiations.

    The Washington sales tax structure is the most regressive in the entire country, expanding its use it will have a negative effect on demand on those who would be most affected by a sales tax increase, answering those who may have legitimate concerns about raising taxes in a fragile economy.

    Since many people come from out to state to work in Washington (eg Microsoft), these immigrants have little interest in helping a state they have no historical ties to and wouldn't benefit from educationally, so they will vote against other forms of taxes that would help state fund education.

    This is coupled with the fact that the people who are hit hardest by the sales tax have little clout in the state capitol, the fact that many believe they pay 'too much' in taxes sentiment is common in many places, people who have a political agenda and see proposals through a political lens, and the fact that the sales tax and fees are easier to pass.

    This explains why Washington has raised licensing fees, traffic fees, and parks fees steadily over the past few years.

    The effect this has is two-fold as fees are inherently regressive, (those with more money are less affected) and long-time Washington residents effectively subsidize new residents because Washington residents have always paid the fees and transportation taxes, but new residents have not, yet both reap the same benefit.

    Even with the help of Bill Gates Sr., Washington voters still rejected revenue for our failing colleges, universities and schools, and recently adopted race-to-the-bottom charter schools initiative as a 'solution' so they wouldn't be asked to ever pay more for education.

    The charter schools initiative has failed every time it has come up until now, and only passed with a scant 50.7% to 49.3% majority.

    This mentality of new Washington residents and big business cherry picking the tax climate and the immigration climate has left many native Washingtonians in the economic wilderness.

    Native Washingtonians and those who have lived here for most of their lives have seen their frontier heritage of libertarianism turned against them in the form of a persistent regression of taxes.

    Self-entitlement has worked its way into the public sector, leading local and state governments to use every 'gotcha capitalism' trick they can find to squeeze dollars from the bottom up. Cities routinely use traffic cameras as a major source of revenue, mailing the fines directly to your home, and Seattle recently instituted distracted driving fees.

    You would'nt guess Washington has a progressive nature based on its tax structure. This is why we should be opposed to expanding the sales tax. And you would find even less people who would appreciate irony of this situation.

    http://seattletimes.com/html/localne...lestax26m.html



    http://www.thestranger.com/seattle/t...nt?oid=4837455


  2. #2
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    Re: WA Governor Gregoire faced with stark reality over Nations worst sales tax

    My initial thought...was one of the motivations for the increase due to the loss of revenue from Washington Residents shopping in neighboring Oregon which has no sales tax?

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    Re: WA Governor Gregoire faced with stark reality over Nations worst sales tax

    That's not a main motivation since we already have a use tax, its just that Gregoire wants to broker a deal before she leaves office, giving fellow Democrat Inslee pretty much a blank check going into his first term.

    I wouldn't call it a tax increase per-se, its a redefinition of the sales tax to include purchases made out of state to Washington residents which would amount to a major increase in its reach and breadth. Im opposed because its unfair, not because of such interstate technicalities.

    Its low hanging fruit and it doesn't address our tax structure in WA. That is why people shop over the internet - and in Oregon because our tax system is the most regressive in the country.

    There are people in Washington who cant afford more sales taxes, and people who can afford to be taxed more. There is a simple solution and it doesnt require expanding a broken system.


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    Re: WA Governor Gregoire faced with stark reality over Nations worst sales tax

    and just to tell you how STUPID people here are in Washington, they want to TAX electric cars so to make up for the gas tax they dont always pay, so there goes your tax credit for buying that electric car!

    instead of fixing the tax structure in this state, they just double down on asinine ideas.


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    Re: WA Governor Gregoire faced with stark reality over Nations worst sales tax

    When it comes to taxes, Washingtonians are stupid. They keep supporting tax initiatives that work against them. They even repealed a few cent tax on soda cans that provided millions in funding to education and health care programs. They won't support a state income tax on the wealthiest because they're paranoid that means a state income tax will eventually trickle down to them. Meanwhile, the state is forced to raise fees and sales taxes to make up the difference so end the end:

    - The bottom 30% of Washingtonians pay 17.3% of their entire income in state taxes.
    - The top 1% of Washingtonians pay 1.7% of their income in state taxes.

    Absolutely ridiculous. Not to mention the millions in tax breaks the big corporations enjoy. A couple years back, Intel actually blackmailed the state of Washington to extend their ridiculous tax cuts otherwise they'd move to a new state. It worked. The state legislature capitulated, and Intel continues to pay less in business taxes than others.
    #439th oldest member on JUB.

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    Re: WA Governor Gregoire faced with stark reality over Nations worst sales tax

    Quote Originally Posted by Just_Believe18 View Post
    When it comes to taxes, Washingtonians are stupid. They keep supporting tax initiatives that work against them. They even repealed a few cent tax on soda cans that provided millions in funding to education and health care programs. They won't support a state income tax on the wealthiest because they're paranoid that means a state income tax will eventually trickle down to them. Meanwhile, the state is forced to raise fees and sales taxes to make up the difference so end the end:

    - The bottom 30% of Washingtonians pay 17.3% of their entire income in state taxes.
    - The top 1% of Washingtonians pay 1.7% of their income in state taxes.

    Absolutely ridiculous. Not to mention the millions in tax breaks the big corporations enjoy. A couple years back, Intel actually blackmailed the state of Washington to extend their ridiculous tax cuts otherwise they'd move to a new state. It worked. The state legislature capitulated, and Intel continues to pay less in business taxes than others.
    It's because most people are rather simple and you need a good 15 or 20 minutes in front of them just to EXPLAIN to them how the top 1-5%'s income comes in (i.e. that it is not on a simple W-2 for the most part) and how the tax structure enables evasion on much of this income.

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    Re: WA Governor Gregoire faced with stark reality over Nations worst sales tax

    Quote Originally Posted by eastofeden View Post
    My initial thought...was one of the motivations for the increase due to the loss of revenue from Washington Residents shopping in neighboring Oregon which has no sales tax?
    Just like Massachusetts to NH. Reckon now with the price of gas, the cost to drive up to NH and back would wipe out any savings you had on tax unless you live near the boarder. My mom goes up to NH about once a month to visit her parent's grave and she does crap tons of shopping, in particular with booze which is much cheaper there. Also NH has fireworks but I don't care for that. However, to make up for the lack of sales tax, NH residents pay the second highest in property taxes after NJ.

    Course with interstate commerce you would still be charged MA sales tax if you bought the car in NH due to licensing. Even when gifting items to relatives, it has to be intrastate or you get whacked with sales tax.

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    Re: WA Governor Gregoire faced with stark reality over Nations worst sales tax

    Exactly. People are stupid in this state, there are about 30-40% of voters who understand this dilemma and vote against the stupid anti-tax initiatives because the rest are easily swayed by a greedy few. Its so disgusting because its their future they are throwing away, not the people who moved here to work for microsoft who dont give a damn about the community they live in.

    I got a response from my state rep and hes saying whatever revenue deal is proposed it will go on the ballot and i will vote against it, not because I dont want to fund education, i need more education, i just dont agree with the undue burden the sales tax places on some while leaving the richest unscathed.


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