Blissfully Unaware - That's Gov. Zero For Ya!

Source: ShiftWA.org

Governor Jay Inslee continues to be oblivious to the fact – or he just does not care – that his proposed income tax on capital gains is unconstitutional.  A Vancouver Columbian story on its interview with the governor states, “Asked by the editorial board about critics who would consider implementing a capital gains tax a roundabout way of getting an income tax — forbidden by the state’s constitution — Inslee said he wasn’t worried. It’s a fundamentally different revenue source, he said. ‘Those critics share something: they’re wrong. This is a constitutional and fair system,’ Inslee said.” It was a typical response for Inslee – make a blanket statement, without regard for fact, as if repeating it makes it so, all while attacking anyone who disagrees with you. The story did not indicate whether the governor was asked to respond to the fact that the consider a capital gains tax an income tax. (Vancouver Columbian and the Washington Policy Center)

Washington State Representative Drew Stokesbary (R-Auburn) says the state’s B&O tax is one of the primary reasons why the current tax structure impacts the poor more than the rich.  Retailers add the cost of the B&O tax in determining the retail price of their products and this gets passed onto the consumer. And since the B&O tax is based on gross receipts (and not net profit) this impacts consumers even more. Stokesbary states, “So that’s one reason why people like the governor say that the working class paid more than their fair share. Well, that’s because when they measure the B&O tax, a lot of these costs get passed on to them because the business has to recoup them somehow.”  Stokesbary suggest the best way to reduce the state’s tax inequity would be to reduce the B&O tax. (KTTH)