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June 14, 2017                                                                             Molly Sheerer (206) 937-9691

Washington Policy Center says imposing a city income tax would be a mistake

Seattle - Today, the Seattle City Council will be hearing public comments on its plan to impose a city income tax. Washington Policy Center believes the proposal is bad public policy and that it would be a mistake for Seattle to give up one of its main economic and social advantages.

Having no income tax is an open door to innovation, from high-tech investment to promoting small businesses, and contributes to Seattle’s well-earned world reputation as an exciting and dynamic place to live.

The strict measure being considered by the City Council would allow no deductions at all; it would even tax social security benefits.

The idea that a Seattle income tax would shift more of the tax burden to the wealthy is false. Imposing a city income tax would not reduce taxes for anyone anywhere – it would only add a new tax.

Cities that impose income taxes, like San Francisco and New York, tend to have the highest levels of income inequality.

An income tax would do nothing to promote fairness, because the regressive burden Seattle officials impose now on working families and the poor would stay exactly the same.

In fact, they want to increase regressive taxation – the Seattle City Council just imposed a regressive soda tax, and they plan to impose the maximum property tax possible starting on January 1, 2018.

As The Seattle Times has pointed out (April 28, 2017), the city is awash in cash. The tax burden Seattle officials impose is the highest ever, with most of the burden falling heaviest on the poor. A city income tax would simply add one more way for officials to get money, on top of what they already collect.

Income taxes always start out on the “rich,” and then later are extended to working families.  Once in place, the Seattle income tax would be gradually extended to middle- and low-income households, funneling more money to public officials and adding to the unfairness of the city’s current system.

Seattle draws people, jobs and investments to our great state of Washington, but imposing a local income tax change the city’s national image as a great place to live and work.

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