Dear neighbors,
I want to thank everyone who participated in our 1st District telephone town hall. A total of 2,901 people participated, and I enjoyed taking your questions!
Many of those questions involved Senate Bill 6346, also known as the Millionaire’s Tax, so I’ve dedicated the first part of this e-newsletter to that issue.
We’re considering Senate bills while the bills that passed the House are going through committee and the Senate floor.
Both the House and the Senate have released budget proposals for the operating, transportation, and capital budgets, so I’ve included links to the three House proposals in this newsletter.
By our state constitution, we have part-time citizen lawmakers instead of full-time politicians. I appreciate that, because it means everybody in the House and Senate brings real-world experience to this job.
I also appreciate everyone back home who have called, emailed, or made the drive to Olympia to meet with their lawmakers or staff or to testify on bills. Our democracy wouldn’t function without active, informed people like you!
Tax fairness and the millionaire’s tax
Many of you have shared that you feel over-taxed. If you’re in the middle class, or working class, that’s true—you’re actually paying far more in state taxes as a share of your income than the wealthiest people in our state.
Our tax structure is one of the most regressive in the US. The more you make, the less you pay in state taxes.
That’s an upside-down tax system. It’s inherently unfair and doesn’t make sense economically. Economists will tell you that trickle-down economics doesn’t work. We’ve tried it many times in many places. The wealthy few already have more than what they need. When you cut their taxes, they don’t have to spend it—or spend it in America.
What does work is cutting the tax burden on working families and the middle class, who will spend it at local stores. They’ll buy clothes and shoes for their kids, maybe a new dishwasher, or finally replace the Honda they’ve been driving since college.
I cosponsored HB 2724 because I believe in fairness, and that a just society takes care of those least fortunate. Our current tax system punishes working families and the middle class. That has to change. It’s long past time to restore fairness to the system, to ask the wealthiest 0.25 percent of the state to pay a little more while reducing the burden on the other 99.75 percent of us.
Part of this legislation is boosting the exemption so more small businesses pay zero B & O Tax. That’s a job-maker, letting small businesses grow and hire more people.
I keep hearing myths about this legislation. You will, too. I want to arm you with the truth.
Truth 1: This is a tax on income over $1 million, NOT a tax on homes or assets.
Your house, your pension, your retirement account—all are exempt.
Only those earning more than $1 million per year would pay 9.9 percent on earnings in excess of that. Basically, what you and I pay in sales tax every day. Today, they pay nothing.
Truth 2: Millionaires and billionaires will NOT flee the state.
Other places passed similar tax reforms, including Maryland, Massachusetts, Washington D.C., New York, and California. The harms that opponents claim didn’t happen.
There’s also not that many places they could go as a tax shelter. Most states, including our neighbors Idaho and Oregon, have an income tax. Only nine states do not.
The Washington State Budget and Policy Center has answers to many frequently asked questions.
We will amend this Senate bill here in the House. I’ll keep you informed on what happens and what it means for our state and the 1st District.
The three budgets
All three budget proposals are now out.
There are different versions coming out of the House and the Senate.
If you want to learn more, here are the House versions of the operating, transportation, and capital budgets:
We’ll negotiate the differences in these budgets and pass final version before the last day of session, March 12.
I’ll keep you informed about what’s in all three budgets after they’ve passed, including anything that affects the 1st District.
How permit reform can save time and taxpayer money
Local student serves as legislative page
It’s my honor to sponsor local students like Kelvin Zhang as legislative pages in the House of Representatives. They spend a full week in Olympia learning about our democracy, participating in mock hearings and events, and helping lawmakers and staff throughout the capitol.
If you know a student who might be interested next session, please tell them to apply next year!
