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.
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 the report's introduction:
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.)
On Wednesday the plaintiffs in the McCleary case filed a response to the state’s post-2017 session report to the Court. Four other groups also filed briefs with the Court. None agreed with the state that it is now in compliance with the McCleary decision.
As part of the 2017–19 operating budget process, the Legislature enacted EHB 2163 to raise revenues by making several tax changes. That includes applying the sales tax to bottled water, which is estimated to increase revenues by $54.6 million in 2017–19.
Today's episode covers the new tax revenues in the recently passed K-12 basic education funding law, which the State of Washington hopes will fulfill its obligations in the Supreme Court's McCleary ruling.
Click here to read our Special Report on the new K-12 basic education law.
Since at least the 1970s, when the state Supreme Court ruled on the precursor to the McCleary case, the use of maintenance and operations (M&O) levies has been limited to enhancements to basic education. In practice, they were sometimes used for basic education purposes, which was part of the problem identified in the McCleary decision. EHB 2242, the education funding bill enacted this year, renames them “enrichment levies” to better reflect their purpose.
In a new special report, we dig in to EHB 2242, the education funding bill passed by the Legislature this session. Briefly:
Recently The Tax Foundation looked into the commonly held belief that rich Americans used to pay much higher income taxes in the 1950s than they do today. It found that the difference between then and now isn't actually that significant:
Last month the Tax Foundation came out with a special report on state's inheritance and estate taxes, which included a special distinction for Washington state:
The Evergreen State imposes the highest top marginal estate tax rate in the nation, imposing a 20 percent rate on taxable estate values above $9 million. The state has an inflation-adjusted exemption which currently stands at $2.129 million.