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Two New Briefs

Today we have posted two new briefs. The first, Now is Not the Time To Raise Seattle Taxes, is available here. The second, I-1098 Income Tax Proposal: Wrong Diagnosis, Wrong Prescription (Second Edition), updates our June 8 brief on Initiative 1098 and is available here.

Debt and Taxes

A Stateline article notes that nationally this year the bulk of the ballot initiatives focus on fiscal, rather than social issues.  This is certainly the case in Washington, where we have initiatives affecting taxes and state debt, among others.  Yesterday we posted policy briefs on two of these:  Referendum 52 and Initiative 1053. R-52 asks […]

R-52 and I-1053

The Research Council has pubished briefs on Referendum 52 and Initiative 1053: The first, Referendum 52: $505 Million to Fund Energy Savings at Universities, Colleges and Public Schools, is available here. The second, Initiative 1053: Requiring a Two-Thirds Majority to Increase Taxes, is available here.

Two charts on Seattle's finances

Here are two charts to give some perspective as Seattle Mayor Mike McGinn releases his budget proposals for 2011 and 2012. In “the worst economy since the Great Depression,” the City of Seattle’s revenue collections have held up relatively well. The first chart compares, for fiscal years 2000 to 2010, revenue growth experienced by Seattle’s […]

What Share of Businesses Would See Their B&O Tax Eliminated by I-1098?

In its impact statement for Initiative 1098, the Office of Financial Management estimates that the initiative’s expansion of the small business credit would eliminate the business and occupation tax obligation for 118,000 Washington businesses. What fraction of Washington businesses would this represent? There is a lot of confusion as to the answer to this question. […]

Deductions and I-1098

For Washington residents, I-1098 defines taxable income to be adjusted gross income (AGI) as calculated at the bottom of the first page of the federal 1040 income tax form less interest received on federal obligations (which the state is prohibited from taxing). The deductions that are itemized on Schedule A and entered on the second […]

Money They Don't Need

Nick Hanauer, a backer of I-1098, gave TechFlash a quote that he must have thought helped the cause: “For people like me and Jeff Bezos and Steve Ballmer, this is a very expensive tax. People where 99 percent of your income is above $500,000, this is a very expensive tax, and I get how it’s […]

Capital Gains and I-1098

A recent posting on the Economic Opportunity Institute’s Washington Policy Watch Blog wrongly claims that Initiative 1098 income tax proposal provides an exemption for capital gains on the sale of a business (link here). In response to the question: “Would there be an exemption for capital gains income, such as someone selling their home or […]

September Revenue Forecast: Let the Cutting Begin

The September update to the general fund-state revenue forecast is out. The forecast for the current 2009-11 biennium has been reduced by $769.9 million; that for the upcoming 2011-13 biennial by $668.7 million. The revision for the current biennium places the general fund into a deficit. The forecast press release is available here. The PowerPoint […]

Just Trust Us

An editorial in Sunday's Columbian, urging voters to reject I-1098, talks about trust.  The income tax proposal is written to apply to individuals making over $200,000 (and married couples making over $400,000); consequently, supporters are selling it as being a tax on the rich only. But the Columbian isn't buying it: Oh, but the measure […]