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Posts tagged ‘Initiative 1098 (Washington State)’

Initiative 1098 (Washington State)

This initiative proposes to relieve small businesses of the B&O (business and Occupation) tax and tap everyone making over $200,000  for individuals and $400.000 for joint filers  with a state income tax.   Well the B&O tax is not eliminated, the limit will only be raised to $4,800. 

There is also a trust fun established for education and health services.   Well the devil is in the details.  It states that the “Net revenue received by the trust must be devoted to education and health services.”   The problem with that is, you can take what ever you want off the top and call the rest “Net revenue”.   I may be mistaken and correct me if I’m wrong but the state constitution states (to the effect) that all taxes collected will be deposited in the State general fund and redistributed according to the budget.    Does that mean that no tax can be collected for a specific program or project?  If this is correct, any implication that a tax collected for a specific fund is bogus.  

There are a lot of statements about what the office of financial management and the state treasurer must do.   A more confident wording would be replacing “must” with “shall”, but then that’s just me.

A very mute gesture was to reduce state property taxes by 25% by 2012.   Considering that the county assessor (not the state) is the one that assesses value and collect property tax, will the 25% be felt in 2012 if your county hikes the value of your property.  Its been done before.  

What I want to ask is, do we really want to put the power of a state income tax in the hands of  our officials?   Do you remember the 2% sales tax?  Well it’s as high as 9.3% now and somewhere in the halls of legislation talks are going on to raise it even higher.   

Do you remember the $30.00 liscense tabs that We the People approved?  It never happened, due to the state and regional organizations taxing on other pet projects to tab fees.   Now us poor folks are asked to vote on an initiative that will burden rich folk with a state income tax.   Well,  we all (rich folks as well as poor folks alike) know that “what comes around, goes around.  In a few years we “Shall” hear slogans like “What’s good for the goose is also good for the gander”.  It may come in the form of a temporary tax initiative or our legislators may take a vote on suspending the rules and pass  emergency legislation imposing and income tax on and to include all citizens working in washington state.   

Need I remind you that you will (not only continue to fill out your federal income tax form) but will also be required to fill out a State income tax form.  If you thought the federal income tax was confusing,  just think about the new kids on the block (Washington department of Revenue) collecting state income taxes.   AND, there is the state income tax rate, what will it be and how often will it increase.   We have a sales tax, lottery, b&o tax, all implemented to collect revenue to ease the budget.  But yet we are still burdened with a budget deficit and has to suffer cuts.   Where will it end?  Say no to I 1098 and end it on Nov 2nd.

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