OLYMPIA — North Olympic Peninsula lawmakers are not embracing a proposal to enact a state income tax on the wealthy to help deal with a two-year $9 billion shortfall, but only one is outright opposing it.
A proposal introduced by Sen. Jeanne Kohl-Welles, D-Seattle, on Wednesday would impose a 1 percent income tax on people making more than $500,000 a year, single heads of a household making more than $750,000 and married couples who make more than $1 million.
Kohl-Welles’ idea has received the support of many Senate Democrats, according to The Associated Press, but not Sen. James Hargrove, D-Hoquiam.
“No, I really don’t” support it, he said.
Skeptical
Hargrove represents the 24th District — which includes Clallam and Jefferson counties and a portion of Grays Harbor County — along with House Majority Leader Lynn Kessler, D-Hoquiam, and House Deputy Majority Whip Kevin Van De Wege, D-Sequim.
“In the past, I’ve been highly skeptical of going to an income tax,” Hargrove said.
“The reason is, even though you start with a particular threshold, the public in general has always feared that the threshold will be changed.”
Kessler said she thought that the proposal, if approved, would almost certainly be challenged in the state Supreme Court, and it would be a long time, if ever, before the state would see any revenue.
It certainly wouldn’t be in time for the next state budget.
“Right now, I’m very skeptical of an income tax,” she said.
Van De Wege also said he didn’t believe an income tax on wealthy Washingtonians would provide much help for the state’s fiscal problems.
“A lot of people would need to work in the [state] Department of Revenue to collect it,” he said, since the proposal would tax only high-income earners.
“In defense of that, I would have to say . . . I would imagine only a handful of people that would pay that tax in the district.”
The income tax proposal came during the same week the state House of Representatives and state Senate released their proposals for the July 2009-July 2011 state budget.
Both budgets include about $35 billion in spending, including $3 billion in federal stimulus money.
The current budget sits at $33.2 billion, The Associated Press said.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
