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 small business?” EOI provides this answer:
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.
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:
On Friday, Washington State Wire ran a story on the volatility of the income tax on high earners that is proposed in Initiative 1098. No matter what you think of the merits of an income tax per se, this particular proposal is untenable -- especially given Washington's current budget situation. Erik Smith writes,
A Forbes.com article from yesterday looks at how the federal government and some states are considering increasing taxes on the wealthy. It includes a discussion of Initiative 1098 in Washington.
Dick Davis has a piece in the Puget Sound Business Journal today on dedicated funds and the state budget. The first 4 paragraphs are available on the public portion of the PSBJ web site. (A subscription is required to read the whole thing.)
We have published a brief, which is available here, on the business tax burden in Washington.
Our intern, Nikolai Riabov, recently posted on this blog a table comparing state and local taxes by state based upon the Census Bureau’s 2008 survey of government finances.
The Census Bureau recently released the latest statistics on state and local taxes as part of its 2008 Survey of Government Finances.