More taxes are out of the question for voters in Washington state, even if those feeding the coffers of government are the rich. Residents overwhelmingly rejected a plan during last week’s election to establish a state income tax that would have levied a 5% tax on anyone earning more than $200,000. The measure also called for a 9% tax for incomes greater than $500,000, and would have cut state property taxes by 20% and eliminated a separate tax for many small businesses.

 

Devised by Bill Gates’ father, Initiative Measure 1098 was rejected by 65% of voters. The founder of Microsoft supported the idea, but his former colleagues—Steve Ballmer and Paul Allen—helped fund the opposition campaign. Other opponents included Amazon.com founder and CEO Jeff Bezos, Microsoft, Boeing and Alaska Airlines.

 

Supporters of Initiative 1098 claimed only 1.2% of the state’s population would have paid more taxes. They also said the plan would have brought in more than $11 billion over five years to support education and healthcare services.

-Noel Brinkerhoff

 

Washington State Votes Down New Tax on Wealthy (by Bill Rigby, Reuters)

Washington Income Tax, Initiative 1098 (2010) (Ballotpedia)