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Three Different Plans for Balancing the State Budget
Our State is facing a budget shortfall of $3 to $6 billion dollars. What the legislature does to solve this crisis will affect every person in this state. I, and the two other candidates running for Position 2 in the 5th Legislative District have very different plans for solving this problem. As a voter, you have a clear choice in this important election.
One of my opponents, Glenn Anderson, wants to raise property taxes by raising the levy lid to 30% - balancing the budget on the backs of homeowners. I am opposed to any increase in property taxes, which are especially harmful to those living on a fixed income.
My other opponent, Dean Willard, wants to increase taxes on lower and middle income families by imposing a “value added tax” or VAT on top of our current tax burden. Here is a quote from a recent Seattle Times article:
Willard, who has a background in technology consulting, including with major consulting firm Accenture, and has raised $67,000 so far for his run, opposes a state income tax but advocates a value-added tax. Value-added taxes are broad-based levies that collect taxes on a good from production to consumption. They are commonly used in
I am opposed to a Value Added Tax (VAT) because, like the sales tax, it places too much of a burden on lower and middle income families. The problem is that these families spend their entire earnings and thus their entire income would be subject to the VAT. But a millionaire might only spend 10% of his earnings and thus only 10% would be subject to the VAT tax. In other words, the effective tax rate on the middle class would be 10 times higher than the effective tax on millionaires – impacting these families in the same unfair way as a sales tax. Our State already has one of the most unfair tax structures in
Mr. Willard claims that a VAT “could bring more stability to the state’s revenue picture.” This is not true. The VAT is a consumption-based tax exactly like the sales tax. During a recession, when sales fall, a VAT tax would plunge in exactly the same way that the sales tax plunges. Value added taxes also harm the economy by reducing sales and consumption. The last thing we should do in the middle of a recession is add another form of sales tax. As a consequence of these drawbacks, no state in the nation currently imposes a Value Added Tax. The State of
The only way to achieve revenue stability is to pass I-1098 so that everyone – including billionaires - pays their fair share. In 2009, as sales were taking a nose dive, the income of billionaires actually rose 20%. Had the wealthy been paying their fair share , there would not have been a shortfall of a billion dollars in school funding. Nor would the legislature have needed to raise taxes on the middle class. It is important to note that I-1098 is not a State Income Tax! Less than one person in 20 would pay this tax. It would take a majority vote of the people and of the legislature to change even one word of I-1098.
Of the three candidates in this race, I am the only one who has consistently opposed any tax increase on lower and middle income families. These families are already overburdened with state taxes that are 20% above the national average. It is morally wrong to raise taxes on our middle class just to protect tax breaks for billionaires. The only way we will ever restore our economy is by cutting taxes on middle class families so they have more money to spend on local businesses.
If you believe it is time for billionaires to pay their fair share, I hope you will not only vote for me, but also encourage your friends and neighbors to vote for me as well. There is only a few days left to mail in your ballot. Thank you for your support.
Best Regards,