Taxing the Rich

Washington State is at it.

Washington state multibillionaires would pay a wealth tax under a proposal that got a public hearing before the Senate Ways and Means Committee.
Senate Bill 5426 would impose a 1% tax on intangible financial property such as stocks, and bonds, futures contracts, and publicly traded options. The first $1 billion of assessed wealth would be exempt from the tax, which “equals one percent multiplied by a resident’s taxable worldwide wealth.”

Leave aside questions of the legitimacy of taxing an American citizen’s foreign-held wealth, intangible or otherwise. The bill’s sponsor, State Senator Sam Hunt (D, Olympia) has given the larger game away.

This is a great attempt to bring fairness to our tax structure which is pretty upside down with the lower income paying 17% of their income in taxes and the upper 1% paying 1% or less[.]

That is pretty upside down.

Another solution would be to lower the tax rates on those with the lower income. However, that would involve lowering tax rates rather than increasing them, and lowering tax rates is completely inconceivable to Progressive-Democrats.

Update: Some have interpreted my “lower the tax rates on those with the lower income to mean lowering income tax rates. Washington has no income tax, only sales taxes (State and local), business taxes, and property taxes. Sales and property taxes are highly regressive and hit the lower income folks the hardest, the former directly through taking a far higher per centage of their income and the latter through driving up the cost of housing, whether owning or renting.

Lowering business taxes (eliminating them, I say) would foster job growth, which would benefit the lower- and no-income folks the most.

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