Blog

New policy brief: I-1634: Nipping Local Food Taxes in the Bud

Initiative 1634 will be on the ballot in November. It would ban local taxes on groceries (except insofar as they are subject to general state and local retail sales taxes). Although the impetus for the initiative is Seattle’s sweetened beverage tax, that particular tax would be allowed to continue. No other jurisdictions are considering grocery […]

New special report: Getting the Tax Structure Right: It’s Complicated

Read the full report here. Briefly: Charges that Washington has the nation’s most regressive state and local tax structure stem from a 2015 report by the Institute on Taxation and Economic Policy (ITEP). The ITEP analysis contains a number of methodological flaws that lead it to overstate the tax burden on low-income households nationally and, […]

Will the head tax return to Seattle?

From 2007 to 2009, Seattle levied an employee head tax in the amount of $25 per full-time, full-year employee. In Nov. 2017, the Seattle City Council rejected a proposal to impose a new head tax that would bring in $25 million a year, which would have been used to help fund subsidized housing. Later that […]

New policy brief: Capital Gains Tax is a Not-So-Capital Idea

A capital gains tax (HB 2967) is currently under consideration in the Legislature. The questionable constitutionality of the tax makes it a risky source of revenue, whether for the schools as previously proposed or property tax relief now. Moreover, should the legislation somehow clear the high constitutional bar, the volatility of the tax would add […]

Seattle’s 2018 work program includes several fiscal and employment policy issues

Last week the Seattle City Council adopted its work program for 2018. The Council’s committees will be working on several issues that may be of interest, including the items below. The Finance & Neighborhoods Committee will “develop and oversee the contract with a consultant to study the feasibility of establishing a City-owned public bank.” (This […]

U.S. Supreme Court takes up two cases that could have major impacts on Washington’s budget

On Friday, the U.S. Supreme Court announced that this year it will hear two cases that will be closely watched by Washington’s Legislature. First, the Court will hear South Dakota v. Wayfair, Inc. This is about whether states can require out-of-state retailers to collect sales taxes. In 1992, the Court held that states can only […]

New Policy Brief: Seattle Should Give Up Its Quixotic Pursuit of an Income Tax

In a new policy brief, we write about the income tax the Seattle City Council passed in July. It is being challenged in court. Briefly: On November 22, 2017, Superior Court Judge John Ruhl declared the City of Seattle’s income tax void. The city has appealed the decision. Seattle Mayor Jenny Durkan has called the […]

New Special Report on Manufacturing Jobs (Part I)

We’re out today with Part One of a series of special reports on manufacturing jobs in Washington state. “Rebalancing Priorities: The Case for Manufacturing Jobs, Part I” covers the role of manufacturing in Washington’s economy, and discusses Gov. Jay Inslee’s recent veto of a tax reduction for state manufacturing. Our series on manufacturing will focus […]

Tax Foundation reports on worldwide corporate tax rates; U.S. among highest

Last week the Tax Foundation issued a report on corporate tax rates around the globe. In terms of statutory tax rates (the rate as written in law, as opposed to the effective rate which is the amount actually paid), the U.S. has the fourth highest in the world and the highest among industrialized countries. From […]

An area of agreement between the State and plaintiffs in the McCleary case

On August 30, plaintiffs in the McCleary case submitted their post-budget filing to the Supreme Court, and four amicus briefs were filed by other groups. (I wrote about these filings here.) The State has now responded to them all, and the plaintiffs have responded to the four amicus briefs. Yesterday, the Supreme Court announced that […]