Ken Schram: New lawmakers shaking up old tax debate
Let's hear it for the newbies.
A couple of second-year state lawmakers are kick-starting a conversation on tax reform.
State Rep. Chris Reykdal and Sen. Dave Frockt are floating the idea of eliminating the state's business and occupation tax, reducing the state sales tax and then setting up a 1 percent flat rate income tax on corporate and personal income.
The proposal would eliminate over $3 billion in B&O taxes and put a billion dollars back in consumer pockets by cutting the state sales tax rate to 5 percent.
With the flat rate income tax in place, the net proceeds to the state would be an additional $500 million.
It's not the perfect tax reform formula but it should at least be a catalyst to get the political conversation going on the issue.
Noticeably missing from the proposal are restrictive safeguards that would prevent lawmakers from arbitrarily raising the income tax rate down the line.
I’m realistic enough to note that there's no way on God's great, green, wonderful earth that this measure will go anywhere in the upcoming session, but it's refreshing and encouraging to see someone thinking outside the box down in Olympia.
Maybe what the Legislature needs is more newbies willing to think that way.
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Have something to say to Ken? Login or signup below to post a comment. Just be sure to read the rules and keep things civil. You can also e-mail him at kenschram@komo4news.com. You can also hook up with Ken on Facebook.
A couple of second-year state lawmakers are kick-starting a conversation on tax reform.
State Rep. Chris Reykdal and Sen. Dave Frockt are floating the idea of eliminating the state's business and occupation tax, reducing the state sales tax and then setting up a 1 percent flat rate income tax on corporate and personal income.
The proposal would eliminate over $3 billion in B&O taxes and put a billion dollars back in consumer pockets by cutting the state sales tax rate to 5 percent.
With the flat rate income tax in place, the net proceeds to the state would be an additional $500 million.
It's not the perfect tax reform formula but it should at least be a catalyst to get the political conversation going on the issue.
Noticeably missing from the proposal are restrictive safeguards that would prevent lawmakers from arbitrarily raising the income tax rate down the line.
I’m realistic enough to note that there's no way on God's great, green, wonderful earth that this measure will go anywhere in the upcoming session, but it's refreshing and encouraging to see someone thinking outside the box down in Olympia.
Maybe what the Legislature needs is more newbies willing to think that way.
-----
Have something to say to Ken? Login or signup below to post a comment. Just be sure to read the rules and keep things civil. You can also e-mail him at kenschram@komo4news.com. You can also hook up with Ken on Facebook.
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